CSA/IIROC Publish Position Paper on Dark Liquidity

The Canadian Securities Administrators (CSA) and Investment Industry Regulatory Organization of Canada (IIROC) published a joint position paper today that considers, and provides the regulators' views on, the issues associated with dark pools and dark orders. According to IIROC and the CSA, their views are intended to provide "more clarity" around how dark orders should be treated and facilitate "investor understanding and choice" regarding the execution of orders.

The paper follows a year of consultations on the subject and sets out the position of the position of the regulators on a number of issues, namely: 

• that only orders meeting a minimum size threshold be exempt from pre-trade transparency requirements;