Reposted here with permission, from https://old.reddit.com/r/GMEJungle/comments/14g5q83/canadian_securities_regulators_dont_want_to_hear/
Credit to u/JackTheTranscoder
Be sure to read the archive.is link for complete content
Summary:
BACKGROUND Canada doesn’t have a single National Securities Regulator like the SEC. Instead we have 13 Provincial and Territorial Securities Regulators who only recently (in the past 10 years) began to cooperate to harmonize securities regulations across the country. The Ontario Securities Commission (OSC) and the British Columbia Securities Committion (BCSC) are the 2 big boys, and pretty much set the tone for the rest of the country. Quebec’s is pretty big too but none of us know what they’re doing so we will ignore them. …
In the case of FTDs of a US security (GME) what can Canadian regulators do?
I can’t say for sure… but from all the other DD we’ve read, I would think Canadian brokers should be able to demand shares they hold on behalf of Canadian investors be delivered to them (remember, they hold them in “street name” for us, we don’t truly own them ourselves)… but they don’t. Because if they did, they would cause a chain reaction of brokers and hedge funds asking for delivery, since none of them want to be the one holding IOUs if the music were ever to truly stop. It’s a big mutually-agreed-upon hallucination at this point.
Or, it might be a sort of firewall at the point Canadian brokers have to deal with the NYSE. NYSE might just say “F-U, you want to deal on our exchange, you have no choice but to believe we have the shares”. Is the SEC/US Congress/etc. going to rule in favour of a rinky-dink (from their PoV) Canadian broker, or their own economy, if push comes to shove on such an issue?
I think Dr. Trimbath is right in saying the issue of allowing FTDs to be continually can-kicked is the core loophole sabotaging a fair market.
Edit: BTW welcome to c/GMECanada!
Canada has it’s own depository. Depends on your broker, but I think I found out that mine buys on NYSE and moves it to the Canadian Depository for Securities. If true, it could be as good as DRS for removing the stock from Cede, even if it’s not held in your own name.
Don’t get me wrong, I have DRS’d plenty anyways…
mine buys on NYSE and moves it to the Canadian Depository for Securities.
Now that’s interesting. I wonder how accessible this CDfS is to lending hijinks.
