Regulation of Canadian Capital Markets in the 1990s: The United States in the Driver's Seat

Abstract

This Article looks at the regulatory techniques that were adopted in a small but developed market, Canada, in response to the increasing integration of the North American economy and internationalization of capital markets. One of the most comprehensive experiments was the Multijurisdictional Disclosure System (MJDS) implemented in Canada and the United States in 1991. Based on principles of reciprocal recognition, the MJDS in fact created greater pressures for harmonization of the two regulatory regimes and, on the Canadian side, prompted regulatory innovations which attempted to keep Canadian markets in the global game.

Keywords: capital markets, securities regulation, mutual recognition, harmonization, internationalization, multijurisdictional disclosure system

JEL Classification: F02, F3, G15, G28, G38, K00, K22