As we discussed in June, the CSA recently announced the adoption of National Instrument 23-103 Electronic Trading, intended to address the risks of electronic trading, specifically with respect to credit risk, market integrity risk, technology or systems risk and regulatory arbitrage risk. With ministerial approval secured, the new instrument will come into force in Ontario on March 1, 2013.

As we previously noted, unlike an earlier proposed version, the final version of NI 23-103 does not include requirements regarding the provision of direct electronic access. Rather, the CSA and IIROC intend to release proposed rules in the upcoming months intended to ensure that similar forms of marketplace access are treated similarly.