In mid-December, the CSA publicized its concerns over dealers sending retail order flow to the U.S.
“[A] number of Canadian investment dealers have entered into, or are considering entering into, arrangements to route Canadian retail investor orders on a broad basis to U.S. dealers for execution,” it said in a release. “Under these arrangements, retail orders are not typically executed on U.S. exchanges, but instead are executed by U.S. dealers off-marketplace. Canadian investment dealers may receive payment or other benefits for sending these orders to the U.S. dealers.”
The OSC declined Advisor’s Edge Report’s request for specifics on the number of firms involved, and how the regulator became aware of arrangements still in the planning stage.
Advisor.ca – FEBRUARY 20, 2015.