Becoming an approved participant
Approved participants have direct access to the Exchange markets and trading environment. The most obvious advantage of becoming an approved participant is significant cost savings in execution. They also have the right to route client orders and install terminals in client offices.
Employees of approved participants are required to be approved as SAM Authorized Person before being permitted to trade on SAM (Montréal Automated System).
Recognized as a self-regulatory organization by the Autorité des marchés financiers, the Exchange also offers clearing services through its subsidiary, the Canadian Derivatives Clearing Corporation (CDCC).
Firms applying to become an approved participant must meet certain criteria including:
1) For Canadian firms :
- be duly formed under the Canadian provincial or federal applicable laws;
- be a member of a Canadian self-regulatory organization (Investment Industry Regulatory Organization of Canada);
- become a member of the Canadian Derivatives Clearing Corporation or conclude a clearing agreement with one of its members.
Approved participants' employees applying to obtain an approval entitling them to trade on SAM must beforehand enroll to the course(s) offered by the Regulatory Division.
2) For foreign firms (United States, United Kingdom, Israel and France only)
- be duly formed pursuant to the relevant laws of the country;
- be registered with a securities or derivative instruments regulator, or a recognized self-regulatory organization, unless it is exempted from such registration in its jurisdiction and subject to all other applicable restriction;
- have entered into a clearing agreement with a member of the Canadian Derivatives Clearing Corporation;
- have a designated agent for service of process residing in Quebec.
All Approved Participants of the Exchange are required to implement the tool developed by the Exchange for the submission of daily position reports on derivative instruments traded on the Exchange, unless they have specifically been exempted from or have delegated this regulatory procedure. This tool should be implemented at the time of the trading connection in order for it to be fully operational from the beginning of the Approved Participant's trading activities on the Exchange. Information relevant to this tool and its implementation is available in the LOPR section of this website.
For more information on the application process and the courses offered, please contact the Regulatory Division.
Canadian Derivatives Clearing Corporation (CDCC)