CANADA: Updated Guidance on Short Sale and Short-Marking Exempt Order designations issued

Friday February 19 2016

The IIROC has issued revised guidance (rule notice 16-0029) on the marking of orders pursuant to UMIR to include “short sale” and “short-marking exempt” (SME) order designations.

Rule notice 16-0029 was issued pursuant to an amendment made to the SME Order definition of short-marking exemption, to include orders related to all ETF market making activity to ensure consistent application of the SME order designation to that trading activity.

The revised guidance replaces the initial rules notice 12-0300 of October 11, 2012 and will come into force on 11 April 2016.

The IIROC is required to provide updated guidance on “Short Sale” and “Short-Marking Exempt” Order Designations under Rule 6.2 of UMIR and its use on qualified orders is not optional.

Please follow the link at the top of the page for rule notice 16-0029

For a link to Notice 16-0028, concerning amendments to the short-marking exempt order definitio,n please see the below link:

IIROC Notice 16-0028 – 27 Jan 2016