Industry Preps for Canadian Post-Trade Reporting10.26.2015
Beginning on November 1, dealers of Canadian over-the-counter debt will be mandated to report such transactions to the Investment Industry Regulatory Organization of Canada (IIROC). Bloomberg is among market-data and trading platforms prepared for the new rule set.
“When the Canadian regulators started to introduce transaction reporting requirements with the aim of trade surveillance, our clients in Canada came to us looking for transaction reporting capabilities to help them create a straight-through processing solution that would not impact their day-to-day operations and would aid them in being compliant,” said Sunil Biswas, global head of product for Bloomberg TOMS at Bloomberg.
Under the IIROC’s new Dealer Member Rule 2800c, government securities distributors (GSDs) and their affiliates who participate in the Market Trade Reporting System must report all Canadian-dollar denominated debt transactions.
Unlike US regulator Finra, which requires eligible fixed-income trades reported to it Trace platform within 15 minutes of the transaction, IIROC requires GSDs to report their transactions no later than the day after the trade date (T+1).
The regulator also plans to extend the mandate to non-GSD participants by November 1, 2016 at the earliest, according to IIROC officials.
Bloomberg initiated its IIROC development project towards the beginning of the year, leveraging the capabilities it already had in supporting other asset classes and other regulatory reporting regimes, according to Biswas.
“It took us about six months to develop the offering and get it into our test environment,” said Bloomberg’s Biswas. “Then we were part of the industry-wide test set up by IIROC. Now it just is a matter of waiting for the go live date.”
Bloomberg TOMs is the first customer trade reporting tool certified by the IIROC to meet Rule 2800c reporting requirements, Bloomberg officials added.
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