New Self-Regulatory Organization of Canada (New SRO) is the national self-regulatory organization that oversees all investment dealers, mutual fund dealers and trading activity on Canada’s debt and equity marketplaces. It is a combination of the Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association of Canada.
New SRO has scheduled an industry business continuity planning trading simulation test for Saturday October 14th, 2023. As with previous IIROC-led industry BCP tests in 2019 and 2021, the date coincides with industry test dates in the United States to facilitate participation by market participants who participate in both the Canadian and US markets.
This industry business continuity planning test 'reflects the fact that it is critically important for stakeholders to adequately test business continuity policies and procedures that are reasonably designed to ensure the provision of key services and prompt client access to their assets'.
The industry BCP test also 'complements Investment Dealer and Partially Consolidated Rule 4700, Part A, which requires every Dealer Member to establish and maintain a business continuity plan identifying the necessary procedures to be undertaken during an emergency or significant business disruption'.
Participants
New SRO staff expect to contact all ‘participant dealers’ in January 2023 to confirm their required level of participation in the 2023 industry BCP test:
- Participant dealers with trading volumes at or above 1 billion shares/year based on 2022 trading data are required to participate in the trading simulation
- Participant dealers with trading volumes below 1 billion shares/year based on 2022 trading data while not required are encouraged to participate on a voluntary basis.
New SRO will form an industry working group to assist and advise on the preparation of the BCP test.
