IIROC adopts amendments regarding order execution services

November 14, 2014

IIROC yesterday announced the adoption of amendments to UMIR and its Dealer Member Rules intended to achieve consistency in the oversight of similar activity occurring through different forms of third-party electronic access. 

Among other things, the amendments introduce a requirement that dealers providing order execution services include a client ID on each order entered on a marketplace for or on behalf of any client (i) whose trading activity on marketplaces exceeds a daily average of 500 orders per trading day in any calendar month; (ii) that is not an individual and is registered as a dealer or adviser in accordance with applicable securities legislation; or (iii) that is not an individual and is in the business of trading securities in a foreign jurisdiction in a manner analogous to a dealer or adviser.

Pursuant to the amendments, an OES dealer will be required to provide IIROC the identification of the client associated with the client ID and Participants providing execution services for OES dealers will also have to ensure that each order sent to a marketplace includes the client ID on each order.

IIROC first proposed the amendments in October 2013 and republished them in April 2014. The amendments come into effect on June 1, 2015.

For more information, see IIROC Notice 14-0263 and Notice 14-0264 for associated guidance.

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