Mandate and Roles
Under the Autorité des marchés financiers (l'"AMF") oversight, the Regulatory Division is intended to protect the investors and to promote the integrity of exchange-traded financial derivatives markets in Canada through the development and the consistent application of clear, fair rules and policies that are effectively adapted to market needs. The Division is composed of the following four services, each with a well-defined role.
Core Regulatory Functions
The Core Regulatory Functions service ensures the performance of regulatory activities in accordance with the Division's mandate: Examinations, Market Analysis and Investigations.
Examinations
The examiners conduct trade desk reviews of the Bourse Approved Participants. The purpose of these reviews is to verify the compliance of the Approved Participants' trading practices with the Rules of the Bourse. Among other things, such examinations involve:
- verifying samples of orders entered on the trading system and of transactions executed thereon;
- reviewing procedures in place and their adequacy and completeness;
- verifying various books and records.
Once the examination is completed, a report is issued to the Approved Participant summarizing any deficiency identified in the course of the examination and setting out requirements or recommendations to correct observed deficiencies.
Market Analysis
The market analysts perform market surveillance to identify potential breaches of the Rules of the Bourse, monitor insider trading activities on the options market of the Bourse, and analyze any complaints received. The group also reviews transactions on derivatives to determine whether trading rules and principles are complied with and fairly maintained, and whether such transactions involve abusive or manipulative trading practices. The market analysts are also responsible for reviewing and analyzing the various reports that Approved Participants are required to file on a regular basis with the Division, as well as ensuring compliance with position limits and the evaluation of any exemption requests.
Investigations
An investigation may be opened following findings of potential regulatory breaches identified as part of an examination or analysis (including the review of a complaint). When the investigation concludes that there has been a potential violation of the Rules of the Bourse, the file may be transferred to the Legal and Regulatory Affairs service.
Legal and Regulatory Affairs
The Legal and Regulatory Affairs service supports the Division's other services in their regulatory activities and is responsible for enforcing the rules of the Bourse through the disciplinary process. Upon receipt of an investigation, after review and analysis, the filing of a disciplinary complaint by the President, Regulatory Division may be recommended. The matter is heard by the Disciplinary Committee of the Bourse in order to rule on a contested cause or to ratify a settlement agreement between the parties.
This service participates in the development of new rules, their modification and processes regulatory approval requests related to:
- Becoming a Canadian or foreign Approved Participant;
- Applying as an Approved Person;
- Assigning MX-Ids; and
- Treating any other regulatory approval request applicable under the Rules of the Bourse.
Strategy and Regulatory Outreach
The Strategy and Regulatory Outreach service has a dual mandate: to ensure the coordination and prioritization of the Division's regulatory initiatives by considering their added value, cohesion with current initiatives and the needs of all stakeholders, and; to act as a resource to participants for all questions relating to rules and business practices. This service also participates in the development of new rules and their amendments.
Data and Systems
The Data and Systems service ensures the sound management and governance of regulatory, personal and confidential data collected by the Division. This service is also responsible for determining the preferred orientations regarding technological systems and initiatives (particularly in artificial intelligence and machine learning) as well as the valorization of data.
