Tuesday May 30 2017
News Source: Global Exchanges
Focus: Trading Rules
Type: General
Country: Canada
Link: http://www.iiroc.ca/Documents/2017/d8496a0a-1e5c-4f0d-a64b-50e777af3a8f_en.pdf
Investment Industry Regulatory Organization of Canada (IIROC) is re-publishing for comment proposed amendments to Universal Market Integrity Rules (UMIR) to allow certain trades to be reported on an acceptable foreign trade reporting facility (Proposed Amendments).
They originally published proposed amendments relating to acceptable foreign trade reporting facilities on April, 21, 20161 (2016 Proposed Amendments) and received four comment letters. The notice discusses the core requirements of the Proposed Amendments and the changes made to the 2016 Proposed Amendments in response to public comments received and further industry consultation.
If approved, the Proposed Amendments would:
1. introduce a new definition of “acceptable foreign trade reporting facility”, and
2. add a new provision to UMIR 6.4(2) that would allow the following trades in a listed security or quoted security to be reported to an acceptable foreign trade reporting facility:
- over 50 standard trading units and over $100,000 in value, or
- originating from a contingent order related to a derivative transaction where the derivative transaction occurs outside of Canada and the trade in the listed security or quoted security is handled by the same intermediary as the derivative transaction (derivative-related contingent order).
The purpose of the Proposed Amendments is to:
- help ensure large orders have access to “upstairs” liquidity pools in the U.S. that, under current requirements, are difficult to access
- accommodate certain existing trading practices regarding multi-legged options trades.
The only difference from the 2016 Proposed Amendments is that, under the Proposed Amendments, Participants would be able to report all trades in listed or quoted securities originating from a derivative-related contingent order to an acceptable foreign trade reporting facility. These trades would not be subject to a volume and value threshold as was proposed in the 2016 Proposed Amendments.
If implemented, it is not expected that Participants or marketplaces will need to make changes to their systems as a result of the Proposed Amendments.
If approved, the Proposed Amendments would become effective approximately 90 days after publication of the notice of approval.
Please click on the above link for more information.