ICE Futures Canada

Regulation

ICE works with regulators and policy makers around the world to ensure supervision, compliance and reliable operation of markets. As a catalyst in the development of transparent, global markets, ICE works proactively to maintain the confidence of participants and the integrity of markets.

ICE Futures Canada is primarily regulated by the Manitoba Securities Commission, (MSC) pursuant to Order No. 5718 issued on June 16, 2008, and ICE Futures Canada has reporting obligations and other obligations as required by the said Order.

The Autorité des marchés financiers du Quebec (AMF) is an exempting regulator, pursuant to Decision No. 2010-PDG-0034 issued on February 23, 2010, and ICE Futures Canada has reporting obligations to the AMF as required by the said Decision.

The Ontario Securities Commission (OSC) issued an exemption order to ICE Futures Canada on September 25, 2012 and ICE Futures Canada has reporting obligations to the OSC pursuant to the said Order.

The Alberta Securities Commission (ASC) issued a recognition order to ICE Futures Canada on May 30, 2013 and ICE Futures Canada has reporting obligations to the ASC pursuant to the said Order.

Market Supervision

ICE Futures Canada Market Supervision is responsible for the management, monitoring and regulation of all trading activity for ICE's Canadian futures markets. Operating around-the-clock, the team provides both front-line trading and back office support, and generates daily settlement prices.

Jurisdictions

Regulatory Division

The Regulatory Division is responsible for regulating the Exchange's markets and ensuring that all market participants adhere to the Rules of the Exchange and that registered participants adhere, where so required, to the requirements of The Commodity Futures Act (Manitoba).

The Manitoba Securities Commission (MSC) is a special operating agency of the Government of Manitoba. As part of its mandate it is responsible for oversight of The Commodity Futures Act (Manitoba) which regulates commodity exchanges and clearinghouses in Manitoba.

The Exchange was recognized by the MSC in Recognition Orders Nos. 5718 and 5719.

The Recognition Orders mandate the following requirements for the Exchange, with respect to regulating the Exchange;

  1. The Exchange shall establish and maintain a Regulatory Division which shall be responsible for all matters relating to compliance and market surveillance as set out in the Act or as further required by the Commission from time to time. As part of the Regulatory Division, the Exchange shall constitute and maintain a Special Regulatory Committee (SRC), which shall be a special committee appointed by the board of directors of the Exchange responsible for the Regulatory Division.
  2. The operations of the Regulatory Division, including the investigation and compliance functions of the Exchange, shall be independent of the for-profit operations of the Exchange and Holdings.
  3. The Exchange shall ensure that the Regulatory Division has the necessary resources to fulfill its market and regulation functions.
  4. Each SRC member shall be appointed by the board of directors of the Exchange for a term not less than two years. Appointments to SRC can be renewed.
  5. The Exchange shall advise the Commission in writing of the names and background of each person proposed for appointment to the SRC.
  6. In recognition that the SRC has been established to promote the protection of the public interest and protection of the integrity of markets, a reasonable number and proportion of members of the SRC shall not be associated with a participant registered with the exchange or a shareholder of Holdings.
  7. SRC shall be autonomous in accomplishing its functions and in its decision-making process. The independence of the SRC shall be ensured and strict partition measures shall be established in order to prevent conflicts of interest with other activities of the Exchange.
  8. Disciplinary decisions of the SRC, arising out of hearings, shall be subject to appeal to the Commission in accordance with the Act.
  9. The SRC shall provide the Commission with a written report on the operations of the Regulatory Division on an annual basis. The report shall be in a form specified by the Commission and shall include:
    • description of the activities of the Regulatory Division,
    • financial information relating to all of the operations of the Regulatory Division , including all compliance and enforcement functions; and
    • such information as may be requested by the Commission from time to time.
  10. The SRC shall promptly provide a written report to the Commission detailing any misconduct or fraud on the part of a participant or its representatives, or such other circumstance that may result in material loss or damage to the Exchange or its operations.

Exchange Rule 9 mandates a Regulatory Division and the Special Regulatory Committee, providing them with the responsibilities and jurisdiction to ensure that the regulatory functions of ICE Futures Canada are carried out efficiently and fairly, in accordance with Commission Order No. 5718. All matters at the Exchange respecting regulation, compliance and market surveillance matters are entrusted to the Regulatory Division.

The jurisdiction of the Special Regulatory Committee extends to all matters respecting compliance and market surveillance at ICE Futures Canada. This is a broad and far-reaching jurisdiction. It encompasses all the Rules of ICE Futures Canada® including trading rules, contract rules, delivery, shipping, financial compliance and also compliance by participants with the provisions of the CFA and the rules and regulations promulgated thereto.

Rulebook