News from the Americas

United States

Supreme Court hears oral arguments on legality of insider tips. The US Supreme Court heard oral arguments in Salman v. United States, a case that could make clear what prosecutors need to prove in order to guarantee insider trading convictions based on confidential tips. According to DealBook, the Supreme Court’s first insider trading case in 20 years presents the question of what exactly amounts to a “personal benefit?” (10/5/2016)

Tick-Size Pilot Program launched for some small companies. Shares in some small companies started trading in five-cent increments rather than in one-cent increments. According to the Wall Street Journal, this is the first adjustment to “tick” sizes since the decimalization of the U.S. stock market 15 years ago. By the end of October, the “Tick-Size Pilot Program,” which was devised to encourage more trading in small companies, is expected to involve approximately 1,200 companies.Bloomberg reported that some major electronic traders are not happy with the program, as it will force companies to publicly expose detailed trading data without much anonymity, giving competitors a chance to reverse engineer their trading algorithms. (10/3/2016)


Canadian securities regulators give update on consideration of concerns regarding Report of Exempt Distribution. The CSA announced publication ofCSA Staff Notice 45-308 (Revised) - Guidance for Preparing and Filing Reports of Exempt Distribution under National Instrument 45-106 Prospectus Exemptions, which includes revised guidance to address certain of the comments raised by foreign dealers conducting offerings into Canada, and Canadian institutional investors, about the unintended effect of the certification requirements and other issues in Form 45-106F1 Report of Exempt Distribution. (9/29/2016)

OSC Chair/CEO Maureen Jensen calls for leadership on women on boards. The OSC announced that its Chair and CEO Maureen Jensen delivered her first keynote address before the Toronto Region Board of Trade, calling on corporate Canada to make gender diversity a priority in the boardroom and executive suite. (9/27/2016)

OSC seeks applications for its Registrant Advisory Committee. The OSCannounced that it is seeking applicants for membership on its Registrant Advisory Committee. Interested parties should submit their resume indicating their relevant experience by October 24, 2016. (9/26/2016)

Roundtables will discuss proposals to enhance obligations of advisers, dealers and representatives toward their clients. The CSA announced the dates for roundtables to further explore issues raised in CSA Consultation Paper 33-404Proposals to Enhance the Obligations of Advisers, Dealers and Representatives Toward Their Clients, which proposes regulatory action to improve the client-registrant relationship. (9/22/2016)

Canadian securities regulators seek comment on alternative funds framework.The CSA announced that it has published for comment proposed amendments to National Instrument 81-102 Investment Funds and National Instrument 81-101Mutual Fund Prospectus Disclosure, mainly aimed at developing a more comprehensive regulatory framework for publicly offered alternative funds, or commodity pools. In addition, the proposed amendments would streamline the regulation of non-redeemable investment funds under NI 81-102. The comment period closes on December 22, 2016. (9/22/2016).