Market Regulation Services Inc. (RS) launches new database to protect investors from unintentional violations of cease trade orders
TORONTO, Feb. 27 /CNW/ - A national database and real-time dissemination system was launched today by Market Regulation Services Inc. (RS) to protect investors from unintentional violations of issuer cease trade orders (CTOs).
The database contains the names of all Canadian companies whose shares have been cease-traded, including companies traded on the TSX and TSX Venture Exchanges, as well as Canadian companies traded in other jurisdictions.
The repository was developed by RS in collaboration
with the dealer community and provincial securities commissions and funded by the British
Columbia Securities Commission. It will help solve the ongoing problem of timely CTO
notification to investment dealers who previously had to search databases of each
provincial securities commission to ensure they were not violating CTOs. The CTO database
is also the only centralized source for CTOs of non-Canadian-exchange traded companies.
A CTO is issued against a company for failing to meet disclosure
requirements, such as the filing of a quarterly financial statement, or as a result of an
enforcement action that involves an investigation of wrongdoing.
"This new system is a cost-effective and extremely efficient
service designed specifically to protect investors and meet the needs of investment
dealers," said Tom Atkinson, President & CEO of RS. "The database is a good
example of how RS uses its national reach and cooperates with other regulators to
strengthen the integrity of the markets - while lowering costs for the
industry. It fits well with our philosophy of providing solutions that don't get bogged
down by jurisdictional concerns."
The database is publicly accessible through RS's website www.regulationservices.com. Investment
dealers register with RS to receive real-time email notification of issuer CTOs and anyone
can search the library within the site for historical CTO information. The proactive
notification system will greatly diminish the risk of not complying with issuer CTOs,
reducing exposure to disciplinary action by the securities commissions. More than 50
registered investment dealers in Canada have registered for the email notification system
and RS expects all dealers to be registered by April 1.
RS is the independent national market regulation services provider for
Canadian equity markets, including the TSX and TSX Venture Exchanges. It has been
recognized by the Securities Commissions of Alberta, British Columbia, Manitoba, Ontario
and Quebec to regulate the trading of securities.
For further information: | Wendy Dey, Director, Communications & Public Affairs, Market Regulation Services Inc. (RS), (416) 646-7253, wendy.dey@regulationservices.com |