Toronto FIS Live: Adapting to a Changing Regulatory Landscape

Participating in the panel discussion are Naveen Balakrishnan, director of electronic trading capabilities at BMO Capital Markets; Nick Katerinakis, chief compliance officer at Goldman Sachs; Vaughn Swartz, head of compliance at TD Securities; Kuno Tucker, chief compliance officer, Investment Industry Regulatory Organization of Canada; and Felix Mazer, vice president, capital markets compliance, RBC Dominion Securities.

Note from the editor: The provider we had worked with regularly to bring you these feeds in an accessible and readable graphic interface format botched the feed when it was live on July 12, and has not been able to accurately restore it. Following are the tweets as they appeared in reverse order, and the whole stream complete with time stamps, in proper order can be found @referencedata and through a hashtag search on Twitter, #TorontoFIS. Our profuse apologies.

‪#toronto‬ session complete. Thanks for viewing

‪#torontofis‬ Tucker: ITG warned Canada regulators of unintended consequences. US doesnt require dark pools to be opened up

‪#torontofis‬ Mazer explains increment rules for dark pools in Canada. IIROC notice was unexpected

‪#torontofis‬ Katerinakis: means choices between infrastructure and doing biz elsewhere

‪#torontofis‬ Tucker: race to bottom on latency ended, more about are you fastest and how you construct it

‪#torontofis‬ unclear if we can leverage the rules. May have to use independent third parties and build more infrastructure

‪#torontofis‬ if rules arent harmonized can cause global disadvantage for Canada

‪#torontofis‬ every time there is something added, theres downwind effect ... latency or otherwise

‪#torontofis‬ Canada typically takes perfectly good global rules and adds complexity

‪#torontofis‬ Katerinakis: rule notices indicate trends ... typically takes Canada longer to respond than US did with 15c3

‪#torontofis‬ CSA and IIROC rules will hopefully make it easier to work with hi frequency traders

‪#torontofis‬ Tucker: why would firms want to offer direct market access? But if you dont, clients will go elsewhere

‪#torontofis‬ incumbent to have fat finger checks, other checks and limits

‪#torontofis‬ Mazer: Canada US versions almost identical, can be used globally

‪#torontofis‬ leveraging what we have and not having run rate of spending

‪#torontofis‬ Swartz: Canadian notices similar to those done recently in US. Happy to see this regulatory alignment

‪#torontofis‬ IIROC becoming more data and analytics driven, which is positive

‪#torontofis‬ Tucker critical of Maple decision on behalf of ITG

‪#torontofis‬ requests, can you at least set some standards? firms are asking

‪#torontofis‬ March 2013 access rules deadlin not that far away

‪#torontofis‬ increased opportunity for vendors in risk mgmt

‪#torontofis‬ Tucker: have to do strong cost benefit analysis for every new initiative

‪#torontofis‬ compliance units moving away from business prevention

‪#torontofis‬ Mazer: new rules impose a forced latency

‪#torontofis‬ we have to be able to recalibrate systems

‪#torontofis‬ this will change the way desks operate

‪#torontofis‬ Swartz: data mgmt and trading tech are mission critical, but cant keep hiring people in to do compliance

‪#torontofis‬ focus of changes ... much quicker, more real time, therefore more structured offerings

‪#torontofis‬ Goldman reevaluating how biz is structured, so there will be less duplication, etc

‪#torontofis‬ 2 sides of the paradigm, were on slow side now

‪#torontofis‬ how do we optimize? Katerinakis: constantly evaluating reg controls

Panel on regulatory impact starting ‪#torontofis‬

Canada Vulnerable to increase in interest rates ‪#torontofis‬

Canada having good full time jobs figures, above US ‪#torontofis‬

China actually surprised by economic deceleration ‪#torontofis‬

US employers shifting to part time work ‪#torontoFIS

Unknown if tax breaks will be extended to after US election ‪#torontofia‬

But beneficial environment for homeowners and jobs in US econ ‪#torontofis‬

In US many became renters ‪#torontofis

Spain actually worse labor market than Uganda ‪#torontofis‬

Canada at 40% middle of pack on pension spending ‪#torontofis‬

Debt spreads widening ‪#torontofis‬

Funny bits on quotes i e Spain is not Greece. Greece not Ireland etc. ‪#toronto‬ Fis

Stefane Marion giving economic background and outlook...preceding panel

‪#torontoFIS‬ beginning