"Insider" order marking alternative guidance published by IIROC

June 29, 2015

On June 24, 2015, IIROC published Notice 15-0135 – Alternative Guidance on “Insider” Order Marking on an alternate means of complying with rule 6.2 of the Universal Market Integrity Rules. 

Rule 6.2(1)(b)(xiv) requires that an order for the account of an insider of an issuer of the security which is the subject of the order be marked as “insider”.  IIROC has clarified in this Notice that an alternate means of complying with the insider marking obligation is by marking as “insider” all orders for the account of a person who is a statutory insider of the issuer of the security regardless of whether the trade would be subject to insider reporting requirements.

IIROC Notice 15-0135 follows IIROC Notice 10-0121 – Guidance on “Insider” and “Significant Shareholder” Markers published on April 28, 2010.  In contrast to IIROC Notice 15-0135, the 2010 IIROC Notice provides that the requirement to mark an order as “insider” applies to orders of “reporting insiders” not otherwise exempted from reporting obligations under.  IIROC Participants may now choose which of the two marking procedures they wish to follow, so long as they are consistent in their approach to marking orders.   

For further information, please see IIROC Notice 15-0135.

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