Market infrastructure - Canada

11.03.2011

Institutions and organisation

Stock Exchanges

There are three major exchanges in Canada:

  • TSX Group ( www.tsx.com ): Toronto Stock Exchange (TSX) and TSX Venture Exchange

    TSX is Canada's largest stock exchange and serves the senior equities market. Dual currency (CAD/USD) listing was introduced in February 2004 for selected securities.
    TSX Venture Exchange is Canada’s venture capital market place.
  • Montreal Exchange Inc. (Bourse de Montréal Inc. - www.m-x.ca )

    Montreal Exchange Inc. is Canada’s oldest stock exchange. It offers both individual and institutional investors a wide range of equity, interest rate and index derivatives.

CSD and clearing agency

  • The Canadian Depository for Securities Limited (CDS) ( www.cds.ca )

    Incorporated in 1970, CDS is the central securities depository in Canada. It provides clearing and settlement services for all Canadian debt, equities and money market instruments. Debt and equity securities are either immobilised or dematerialised within CDS.
    The depository's real-time, single clearing and settlement system, CDSX, was implemented in 2003.
    CDS acts as the Central Counterparty (CCP) for all on-exchange transactions settled through the Continuous Net Settlement (CNS) service and for all cross-border settlements through its links to the US market.

Central Bank and payment systems

  • Central Bank - The Bank of Canada ( www.bank-banque-canada.ca )

    The Bank of Canada is a direct participant of CDS that monitors risk and participant exposure within the depository system.
    Its primarily responsibilities are to:
    • define Monetary Policy;
    • issue bank notes;
    • perform regulatory and operational activities that contribute to the safety and soundness of Canada's financial system;
    • manage debt.
  • Cash Clearing - Canadian Payments Association (CPA) ( www.cdnpay.ca )

    The CPA was created in 1980 and operates two clearing and settlement systems, as follows:
    • Automated Clearing and Settlement System (ACSS)

      Introduced in 1984, ACSS is used for clearing both paper-based and electronic payments.
    • Large Value Transfer System (LVTS)

      LVTS was introduced in 1999 and is an electronic funds transfer system that facilitates realtime transfer of Canadian dollar payments across Canada. Although LVTS is mainly relevant for large value payments, it can also be used for payments of any amount, especially those that are time sensitive.

Regulatory structure

The securities industry in Canada is regulated at the federal and provincial levels.

  • The Canadian Securities Administrators (CSA)

    CSA is a national institution through which the activities of the thirteen provincial and territorial Securities Commissions are coordinated. Canada's provinces are responsible for regulating and overseeing the self-regulatory organisations (SRO), that is, stock exchanges, clearing agencies etc. The SROs are responsible to ensure that the industry conforms with securities legislation.
  • Investment Industry Regulatory Organization of Canada (IIROC) ( www.iiroc.ca )

    IIROC is the national self-regulatory organisation which oversees all investment dealers and trading activity on debt and equity marketplaces in Canada. Created in 2008 through the consolidation of the Investment Dealers Association of Canada (IDA) and Market Regulation Services Inc. (RS), IIROC sets regulatory and investment industry standards, protects investors and strengthens market integrity while maintaining efficient and competitive capital markets.
  • The Office of the Superintendent of Financial institutions (OSFI) ( www.osfi-bsif.gc.ca )

    OSFI is the main regulatory body at the federal level. It regulates and supervises the activities of federally chartered financial institutions.

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