IIROC – Proposed Amendment to Universal Market Integrity Rules Respecting the Definition of Short-Marking Exempt Order
INVESTMENT INDUSTRY REGULATORY ORGANIZATION OF CANADA (IIROC)
PROPOSED AMENDMENT TO THE DEFINITION OF “SHORT-MARKING EXEMPT ORDER”
IIROC is publishing for public comment proposed amendments to Universal Market Integrity Rule 1.1. The proposed amendments would broaden the definition of “short-marking exempt order” to specifically include an order for an Exempt Exchange-trade Fund (“ETF”) or one of its underlying securities for the principal account of a Participant that is related to Marketplace Trading Obligations or where a Participant has entered into an agreement with an ETF issuer to maintain a continuous distribution of the ETF. The proposed amendments are intended to promote the uniform use of short-marking exempt orders for ETF market makers engaging in similar activities. A copy of the IIROC Notice and related guidance on short sale and short-marking exempt order designations are also published on our website at http://www.osc.gov.on.ca.