The Canadian watchdog said that the regulation will help curb certain risks related to the speed and automation of electronic trading, facilitating actively monitoring and managing risks for marketplaces and marketplace participants.

Chair of the CSA and Chair and CEO of the Alberta Securities Commission Bill Rice said that establishing the right regulatory framework to oversee and manage the risks of electronic trading is a priority for the CSA.

"The regulatory obligations in this new rule provide better protection for investors and support the integrity of Canada’s capital markets by outlining the obligations required when participating in this activity," Rice added.

CSA has developed the mew rule book in consultation with marketplaces, marketplace participants and service vendors, which is also dependable with international regulation of electronic trading.

The regulation which is subject to ministerial approval, will come into effect on 1 March 2013.