Canadian Securities Administrators seek comment on unified IT integrity rule for market infrastructure

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Canadian unified IT integrity rule

Highlights

The Canadian Securities Administrators proposed National Instrument 26-101 would unify technology-related requirements for marketplaces, clearing agencies, trade repositories, information processors and matching service utilities.
The framework introduces more consistent requirements and language, with a second consultation phase focusing on international standards alignment and emerging technologies.
Stakeholders must submit comments on the proposal by January 29, 2027, aiming to bolster market IT system integrity and confidence across Canadian financial markets.

Proposed framework for core market systems

As reported by Canadian Securities Administrators, the proposed National Instrument 26-101 Information Technology System Integrity would create a single framework for the IT systems used by marketplaces, clearing agencies, trade repositories, information processors and matching service utilities.

The proposed rule and related materials consolidate existing technology-related requirements for different types of market infrastructure entities into one harmonized national instrument. The CSA says the framework also introduces more consistent language and requirements across those entities.

The regulator is seeking stakeholder feedback on the proposal and has included consultation questions for a second phase of the project. Those questions focus on how the framework should align with international standards and address issues tied to emerging technologies.

Implications for Canadian capital markets

The CSA says the initiative is intended to promote market confidence and strengthen the critical IT systems of important market infrastructure entities. In turn, the regulatory framework aims to preserve the stability, efficiency and integrity of Canadian financial markets.

Comments on the proposal are due by January 29, 2027, using the method set out in the notice published on CSA members' websites. The CSA coordinates and harmonizes regulation for Canada's capital markets through the securities regulators of the country's provinces and territories.

The BC Securities Commission does not participate in the news release because of publication restrictions related to the upcoming B.C. provincial election.

Our earlier coverage of Payments Canada’s expanded membership eligibility explained how recent legislative changes opened direct participation in national clearing systems to more payment service providers and credit unions. The article noted that new entrants can access Lynx, the Automated Clearing Settlement System and the forthcoming Real-Time Rail, while still having to meet technical, operational and security requirements aimed at preserving system resilience.

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