Friday February 19 2016
News Source: Global Disclosures
Focus: Short Selling
Type: General
Country: Canada
On January 27, 2016 amendments to the Universal Market Integrity Rules (UMIR) were approved in Canada to broaden the definition of a short-marking exempt order (“SME order”) to include an order for an exempt exchange-traded fund (ETF) or one of its underlying securities for the principal account of a Participant that:
- has Marketplace Trading Obligations for the ETF security; or
- has entered into an agreement with the ETF issuer to maintain a continuous distribution of the ETF, and the account used for this purpose at the end of each trading day has no more than a “minimal exposed risk”.
The expansion of the SME order definition is intended to:
- simplify and promote uniform SME marking standards for ETF market makers engaging in similar activities;
- assist in preserving the integrity of short selling data used and published by IIROC;
- avoid unnecessary administrative burden to the ETF market making function.
The Amendment comes into force on April 11, 2016.
The text of the Amendment is set out in Appendix A of notice 16-0028. Appendix C comprises a summary of comments received in response to the request for comments and IIROC’s response to each comment.
To view the amendment please follow the link at the top of the page.
For a link to Notice 16-0029 please see the following link: