IIROC proposes amendment to the short-marking exempt order definition

July 20, 2015

The Investment Industry Regulatory Organization of Canada (IIROC) published a proposal to amend Rule 1.1 Definitions of the Universal Market Integrity Rules.  The amendment would broaden the definition of “short-marking exempt order” to include an order for an Exempt Exchange-traded Fund security or one of its underlying securities for the principal account of a Participant that: (i) has Marketplace Trading Obligations for the ETF security; or (ii) has entered into an agreement with the ETF issuer to maintain a continuous distribution of the ETF.  In addition, at the end of each trading day, the account must have no more than a minimal exposed risk.  IIROC is accepting comments on the proposed amendment until September 14, 2015.

For further information, please consult the IIROC Rule Notice 15-0156.

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