Alberta Chapter Update
The Canadian Securities Exchange (CSE) is in the process of setting up Canada’s first platform for clearing and settling securities through blockchain technology. At a CIRI Alberta luncheon in September, the CSE’s CEO, Richard Carleton, compared the introduction of blockchain to the start of the Internet. He said that blockchain, the underlying technology that manages crypto assets, is being used more and more in private settings, primarily to manage counterparty risk.
Approximately $7 billion in tokenized securities or initial coin offerings (ICOs) was raised last year, most of which was deemed an illegal distribution of securities to the public by the Securities and Exchange Commission (SEC), Carleton said.
Almost any security (equity, bond, debenture, right, warrant, etc.) can be tokenized and turned into a digital asset in the form of a smart contract, he added. This smart contract will define the rights and responsibilities of both the issuer and the holder of the token (dividend, royalty, interest, etc.), said Carleton. Instead of the current trade date plus two days to settle, securities will settle instantaneously, he added, removing risk for brokers, adding transparency (e.g. no more naked shorts) and eliminating paper and costs.
The system will be hosted behind the securities industry firewall, the same network currently used for trading information, Carleton said. The keepers of the ledger will see both sides of the transaction, but the information will be encrypted so that access to the data is controlled, he added. The CSE will have to decide what makes sense from a transparency perspective for the issuer. Ultimately trading will be cheaper, involve less paper and be more transparent and effective, with less risk, according to Carleton.
Carleton noted that blockchain is coming to Canada “sooner than you think” with third-party testing about to start, followed by a six-to-nine-month regulatory approval process. For updates and events visit thecse.com.
British Columbia Chapter Update
The CIRI BC Chapter has been busy planning the 2018/2019 program season. To kick off the fall schedule, Graham MacKenzie, Senior Account Manager for TMX Group, joined us for a breakfast presentation titled Trading Mechanics and Motivations. He discussed many of the mysteries surrounding how and why stocks trade in Canada across the various marketplaces. MacKenzie also spoke at CIRI’s Essentials of IR, which was held in Vancouver.
The Chapter’s most recent event was a Media and Presentation Workshop with Megan Helmer, President of PR Associates, a STEM-focused communications consultancy. (STEM refers to scientific, technological, engineering and mathematical concepts.) The session was designed to help IROs and other communications professionals understand and analyze audiences, develop key messages, use the technique of storytelling, improve body language, voice and tone, and confidently answer difficult media questions.
Our annual Holiday Social took place on December 5, 2018. It provided a fantastic opportunity to network with members and non-members as we enter the holiday season.
Ontario Chapter Update
The Ontario Chapter kicked off its program a bit earlier this year with a FedEx IRO Luncheon in July featuring Elizabeth Allen, Staff Director, Investor Relations, FedEx Corp., who has been with FedEx IR for 20 years.
The Chapter came together again in September with its first networking event of the season and launched another year of its Mentorship Program! Thirty members and non-members met at a local spot to catch up on summer stories and discuss upcoming challenges in the investor relations space.
In October, we followed the launch of our Mentorship Program with the first Breakfast Series session of the season. The event featured Sonya Mehan, CPIR, Director, Investor Relations & Corporate Communications, ATS Automated Tooling Systems Inc. Sonya spoke to attendees about her IR career and how she is developing a new IR program at ATS.
Recently, more than 25 members and non-members came together for an update on the revised Markets in Financial Instruments Directive (MiFID II), hosted by The Macquarie Group. Our speakers addressed the UK regulation that is starting to impact the buy-side community closer to home.
The Ontario Chapter Executive is looking forward to our annual holiday get-together in December – and setting the tone for 2019 with our Economist lunch in January!