Industry


Quotation and Trade Reporting System (QTRSs)


A Quotation and Trade Reporting System (QTRS) is a marketplace that may bring together orders of buyers and sellers and provide a trading facility. Currently there are no QTRSs recognized in Ontario. A QTRS is defined as a person or company that operates a facility that permits the dissemination of price quotations for the purchase and sale of securities, as well as reports of completed transactions.

Recognition Process

To become recognized as a QTRS, an applicant must first file an application and Form 21-101F1 to National Instrument 21-101 Marketplace Operation (NI 21-101) with the OSC, setting out its:

  • corporate governance;
  • by-laws, rules, policies and other similar instruments;
  • systems and operations;
  • access requirements;
  • listings criteria;
  • fees;
  • financial viability; and
  • regulation.

The OSC will assess the application to determine if the criteria described above are met. The OSC may impose terms and conditions on the recognition of a QTRS.

An application for recognition as a QTRS should be filed through the OSC's electronic filing portal.

Ongoing Requirements

If recognized by the OSC, a QTRS must conduct itself in accordance with requirements outlined in NI 21-101, National Instrument 23-101 Trading Rules (NI 23-101) and any terms and conditions of recognition or exemption from recognition. Additional guidance regarding the requirements in NI 21-101 and NI 23-101 may be found in their related Companion Policies.

Some of these requirements include:

  • setting rules;
  • monitoring the conduct of its users and enforcing its requirements either directly or indirectly through a regulation services provider;
  • conducting an annual independent system review;
  • providing accurate and timely information to an Information Processor (Information Processor Link) or to an information vendor regarding orders and trades for the securities displayed on the QTRS; and
  • filing any changes to the information provided in Form 21-101F1.
A recognized QTRS may also be required to submit amendments to its by-laws, rules or policies to the OSC for review and approval, prior to their implementation.

The OSC would be responsible for overseeing the compliance by a QTRS with any regulatory requirements. As part of its oversight, the OSC would review required filings (e.g., changes to information filed in Form 21-101F1), proposals for amendments to by-laws, rules and policies of the QTRS, and would perform on-site oversight reviews.

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