I think if you look at bylaw 35 you'll see reference to foreign affiliates. Assuming IB Canada cleared through their foreign affiliate they would be considered the Introducing Broker and the Foreign Affiliate the Clearing Broker. There is some mention of an exemption to allow a Foreign Affiliate to act as Clearing Broker under certain conditions . This stuff is about as clear as mud.
thanks for the info. You have to be a lawyer to figure out exactly what the By-Law says but it does appear to say that it is possible for IB to keep their clearing firm separte from IB Canada (sec 35.6 Exemptions for Arrangements Between a Member and a Foreign Affiliate). Has anyone thought of a legal way to have an account with IB if their registration eventually fails?
does it have a web site? giving status report on the opening and perhaps letting people know about them. can an online petition be filled at one of these web site? I'm sure a lot of canadian traders would love to fill a form asking them what they think about this situation. canadian traders are being ripped off blindly and they will never have a chance to trade properly with the cost structure that presently exists. on another note, in BC some documents are circling about Securities Regulation, and people are asked to join them, here the link. it may be of interests to some of you http://www.bcsc.bc.ca:8080/comdoc.n...A68DCE2EFFB8575588256B64005970F8?OpenDocument
Everyone here should make a submission supporting the BCSC proposals regarding foreign brokers, with a copy to their own provincial regulator if they don't live in BC. My submission has already gone to the BCSC and the OSC. Get off your butts and do it guys, if you want to play on an equal footing with US traders.
hi everyone - I brought this up with TradeFreedom. a principle at the firm sounded like he has been through a war just to get the business up and running. the problem IB seems to be having with the regulators is the fact concerning clearing. they are told that they must use a canadian clearing firm to execute trades on behalf of candian clients. TradeFreedom uses penson canada (which they convinced the U.S. parent to open a branch in canada). they had to use penson because they just couldnt be competitive without better clearing costs. its the banks behind the non-competitive bullsht (because they control the clearing). IB will not be able to offer the same prices they do in the states because they have to clear on the U.S. side and canadian - stupid but jay at tradefreedom said that this is what keeps us brokers out and the prices jsut rediculous in canada.
DONE! - I just sent another email to the OSC with the BC concept proposal. I've sent about 5 emails to the OSC in the past six months with only one response. Its nice to see someone (BCSC) thinks that Canadians should have access to US discount brokers.
Not even being aware of the BCSC proposal before now, would someone care to post the gist of their email along with the addresses to use for the BCSC and OSC ? This would be a great help.
Publication for comment The British Columbia Securities Commission is publishing for comment its concept paper New Concepts for Securities Regulation. The paper accompanies this Notice. We developed these concepts by asking ourselves how effectively our current system of regulation deals with today's threats to investor protection and market integrity. The concept paper identifies existing rules that impose major regulatory burdens on industry but that may not protect investors and markets as effectively as in the past. The paper also identifies areas where new rules may make sense. At this stage, the concepts are ideas for discussion, not proposals. Through this comment process and the accompanying consultation program described below, we will hear the views of industry, investors and our fellow regulators on the concepts. We will be guided by the comments we receive in designing any proposals we ultimately recommend. Concept 2 â A Simpler Registration System This concept would replace many detailed and prescriptive registration rules with a code of conduct. The code would state general principles about registrant qualification, proficiency, character, and behaviour. It would be accompanied by a policy or similar interpretive document to provide guidance to industry on the application of the code. Registrants would be liable to investors if the code was not followed. The concept would allow anyone registered in one Canadian jurisdiction to do business across Canada. The concept questions whether individual registration is still necessary, and considers whether foreign registrants who do not solicit business in Canada should be allowed to advise or open accounts for Canadians without having to register here. Foreign registrants The Problem The current registration requirements apply to all firms, domestic or foreign. A foreign registrant cannot advise or open accounts for Canadians unless it registers in each Canadian jurisdiction where it wishes to operate. This means it must incorporate a Canadian subsidiary, keep records in the jurisdictions where it is registered, become a member of the IDA or the Mutual Fund Dealers Association, participate in a Canadian compensation or contingency trust fund such as the Canadian Investor Protection Fund, and comply with all other rules relating to registrants in each Canadian jurisdiction. As a result, few foreign registrants register in Canada. This limits Canadians' access to the expertise of foreign registrants when they wish to invest in foreign securities. The Concept Consider allowing foreign registrants that do not solicit business from Canadians to advise or open accounts for Canadian residents to trade in foreign securities without registering here. Foreign firms could then deal with Canadian clients who open accounts on an unsolicited basis without complying with duplicative Canadian requirements. Canadian investors that wish to invest in foreign securities could benefit from the expertise in those securities provided by foreign registrants. Canadian residents who seek out foreign registrants would not have the protections of Canadian law, but that would be their choice. Our responsibility to protect investors in our markets does not extend to protecting them when they voluntarily and without solicitation choose to do business in foreign markets. If foreign registrants wanted to solicit business from Canadian investors, the registration requirements would continue to apply. BCSC email: deregulation@bcsc.bc.ca OSC email: inquiries@osc.gov.on.ca
here you go : The BCSC has just launched some far-reaching deregulation proposals. Full details can be found in this link: http://www.bcsc.bc.ca:8080/comdoc.n...F8?OpenDocument Here is a key component of the proposal as far as Canadian traders are concerned. "Canadian residents who seek out foreign registrants would not have the protections of Canadian law, but that would be their choice. Our responsibility to protect investors in our markets does not extend to protecting them when they voluntarily and without solicitation choose to do business in foreign markets." This would mean that Canadians would be free to do business with US brokers and US mutual fund companies, providing they didn't solicit our business. They are inviting responses. I urge all Canadians here to respond supporting this concept, whether you live in BC or not (they are holding hearings in other cities), to counter the inevitable negative responses from the brokers and fund companies. This is the first sign of a breaking or ranks amongst the regulators and we must get behind the proposal and build on the opportunity it creates.
I'm all for it but your link doesn't work. I have been very upset lately because I cannot find any broker that will accept Canadian for clients. So I am asking for help, to any Canadians out there that has found a broker that allows me to trade US equities. Please only list brokers that charge reasonable rates, not like td waterhouse or etrade canada, ripoffs.