IDA
and CDNX announce Member Regulation transfer to the IDA
January 4, 2000By an agreement
that took effect December 31, 1999, the Canadian Venture Exchange (CDNX) has transferred
its Member Regulation functions to the Investment Dealers Association of Canada (IDA).
Under the agreement, the IDA takes responsibility for
Financial Compliance, Sales Compliance, Enforcement and Registration for those firms that
were formerly in the CDNX audit jurisdiction. CDNX retains responsibility for approving
traders to access TradeCDNX, and for the regulation of trading done in securities listed
on CDNX. CDNX will also establish a trade desk and corporate finance due diligence review
process.
The IDA assumes responsibility for the 24 firms that were in
the CDNX audit jurisdictionsix of which were not IDA Members. The firms requiring
IDA Member status will go through a simplified membership process, similar to what was
undertaken when the Toronto Stock Exchange transferred Member Regulation responsibilities
to the IDA in 1997. In addition, seven Member Regulation staff from CDNX transferred to
the IDA effective December 31, 1999. With the completion of this arrangement, the IDA has
166 firms in its primary audit jurisdiction, representing over 97% of the capital and
revenue in the industry.
The Investment Dealers Association of Canada is the national
self-regulatory organization (SRO) and trade association of the securities industry. The
Associations role is to foster fair, efficient and competitive capital markets by
encouraging participation in the savings and investment process and by ensuring the
integrity of the marketplace.
CDNX is Canadas newest stock exchange, launched
November 29, 1999, following the merger of the Alberta and Vancouver stock exchanges. Part
of the overall Canadian capital market restructuring, CDNX was established to provide a
strong market for emerging businesses, investors and member firms. It is one of
Canadas three specialized exchanges, complementing the Toronto Stock
Exchangehome to the senior equities marketand the Montreal Exchangethe
market for derivative products.
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