A Study of the Bond/Debt/Debenture Market in Canada

Abstract

Historically, the treatment of exchange-traded derivatives under securities legislation has been inconsistent, in part, because of a difference of views as to whether or not they are “securities” or should be treated as such. Derivatives are regulated in Canada through securities regulatory authorities only in the provinces of Alberta, British Columbia, Manitoba, Ontario, and Quebec. Alberta and British Columbia can be grouped together as they take a similar approach. The approach taken by Ontario and Manitoba is also similar, but differs from that taken in British Columbia and Alberta. Lastly, Quebec has recently passed a new Derivatives Act that has introduced yet a third approach to derivatives regulation in Canada. These approaches are summarized below along with other developments that have been undertaken in the past with respect to the regulation of derivatives.this paper seeks to answer the various questions related to the financial market instruments in Canada.

Keywords: bond, debt, debenture, canada