Unofficial Consolidation: National Instrument 23-101 Trading Rules

Unofficial Consolidation: National Instrument 23-101 Trading Rules

Unofficial Consolidation

Ontario Securities Commission

National Instrument 23-101

Unofficial consolidation current to 2017-04-10.

This document is not an official statement of law or policy and should be used for reference purposes only.

Any forms referenced in this document are available separately on the Ontario Securities Commission website.

National Instrument 23-101
TRADING RULES

Contents

Part 1 Definition And Interpretation

Definition

Interpretation — Nl 21-101

Part 2 Application of this Instrument

Application of this Instrument

Part 3 Manipulation and Fraud

Manipulation and Fraud

Part 4 Best Execution

Application of this Part

Best Execution

Order and Trade Information

Part 5 Regulatory Halts

Regulatory Halts

Part 6 Order Protection

Marketplace Requirements for Order Protection

List of Trade-throughs

Systems or Equipment Failure, Malfunction or Material Delay

Marketplace Participant Requirements for Order Protection

Locked or Crossed Orders

Trading Hours

Trading Fees

Ceasing to be inter-listed security – fee transition period

Anti-Avoidance

Application of this Part

Part 7 Monitoring and Enforcement of Requirements Set by a Recognized Exchange and a Recognized Quotation and Trade Reporting System

Requirements for a Recognized Exchange

Agreement between a Recognized Exchange and a Regulation Services Provider

Obligations of a Recognized Exchange to a Regulation Services Provider

Requirements for a Recognized Quotation and Trade Reporting System

Agreement between a Recognized Quotation and Trade Reporting System and a Regulation Services Provider

Obligations of a Quotation and Trade Reporting System to a Regulation Services Provider

Co-ordination of Monitoring and Enforcement

Part 8 Monitoring and Enforcement Requirements for an Ats

Pre-condition to Trading on an ATS

Requirements Set by a Regulation Services Provider for an ATS

Agreement between an ATS and a Regulation Services Provider

Agreement between an ATS and its Subscriber

Part 9 Monitoring and Enforcement Requirements for an Inter-Dealer Bond Broker

Requirements Set by a Regulation Services Provider for an Inter-Dealer Bond Broker

Agreement between an Inter-Dealer Bond Broker and a Regulation Services Provider

Exemption for an Inter-Dealer Bond Broker

Part 10 Monitoring and Enforcement Requirements for a Dealer Executing Trades of Unlisted Debt Securities Outside of a Marketplace

Requirements Set by a Regulation Services Provider for a Dealer Executing Trades of Unlisted Debt Securities Outside of a Marketplace

Agreement between a Dealer Executing Trades of Unlisted Debt Securities Outside of a Marketplace and a Regulation Services Provider

Part 11 Audit Trail Requirements

Application of this Part

Audit Trail Requirements for Dealers and Inter-Dealer Bond Brokers

Transmission in Electronic Form

Part 12 Exemption

Exemption

Part 13 Effective Date

Effective Date

 

 

Part 1
Definition And Interpretation

Definition

1.1         In this Instrument

"automated trading functionality" means the ability to

    1. immediately allow an incoming order that has been entered on the marketplace electronically to be marked as immediate-or-cancel;
    2. immediately and automatically execute an order marked as immediate-or-cancel against the displayed volume;
    3. immediately and automatically cancel any unexecuted portion of an order marked as immediate-or-cancel without routing the order elsewhere;
    4. immediately and automatically transmit a response to the sender of an order marked as immediate-or-cancel indicating the action taken with respect to the order; and
    5. immediately and automatically display information that updates the displayed orders on the marketplace to reflect any change to their material terms;

"best execution" means the most advantageous execution terms reasonably available under the circumstances;

"calculated-price order" means an order for the purchase or sale of an exchange-traded security, other than an option, that is entered on a marketplace and for which the price of the security

    1. is not known at the time of order entry; and
    2. is not based, directly or indirectly, on the quoted price of an exchange-traded security at the time the commitment to execute the order was made;

"closing-price order" means an order for the purchase or sale of an exchange-traded security, other than an option, that is

    1. entered on a marketplace on a trading day; and
    2. subject to the conditions that
      1. the order be executed at the closing sale price of that security on the marketplace for that trading day; and
      2. the order be executed subsequent to the establishment of the closing price;

"directed-action order" means an order for the purchase or sale of an exchange-traded security, other than an option, that,

    1. when entered on or routed to a marketplace, is to be immediately
      1. executed against a displayed order with any remainder to be booked or cancelled; or
      2. placed in an order book;
    2. is marked as a directed-action order; and
    3. is entered on or routed to a marketplace
      1. to execute against a best-priced displayed order, or
      2. at the same time that another order is entered on or routed to a marketplace to execute against any protected order with a better price than the entered or routed order;

"NI 21-101" means National Instrument 21-101 Marketplace Operation;

"non-standard order" means an order for the purchase or sale of an exchange-traded security, other than an option, that is entered on a marketplace and is subject to non-standardized terms or conditions related to settlement that have not been set by the marketplace on which the security is listed or quoted;

"protected bid" means a bid for an exchange-traded security, other than an option,

    1. that is displayed on a marketplace that provides automated trading functionality and
      1. the marketplace meets or exceeds the market share threshold as set for the purposes of this definition by the regulator, or in Québec, the securities regulatory authority; or
      2. if the marketplace is a recognized exchange, the bid is for a security listed by and traded on that recognized exchange; and
    2. about which information is required to be provided pursuant to Part 7 of Nl 21-101 to an information processor or, if there is no information processor, to an information vendor that meets the standards set by a regulation services provider;

"protected offer" means an offer for an exchange-traded security, other than an option,

    1. that is displayed on a marketplace that provides automated trading functionality and
      1. the marketplace meets or exceeds the market share threshold as set for the purposes of this definition by the regulator, or in Québec, the securities regulatory authority; or
      2. if the marketplace is a recognized exchange, the offer is for a security listed by and traded on that recognized exchange; and
    2. about which information is required to be provided pursuant to Part 7 of NI 21-101 to an information processor or, if there is no information processor, to an information vendor that meets the standards set by a regulation services provider;

"protected order" means a protected bid or protected offer; and

"trade-through" means the execution of an order at a price that is,

    1. in the case of a purchase, higher than any protected offer, or
    2. in the case of a sale, lower than any protected bid.

Interpretation — Nl 21-101

1.2         Terms defined or interpreted in Nl 21-101 and used in this Instrument have the respective meanings ascribed to them in Nl 21-101.

Part 2
Application of this Instrument

Application of this Instrument

2.1         A person or company is exempt from subsection 3.1(1) and Parts 4 and 5 if the person or company complies with similar requirements established by

    1. a recognized exchange that monitors and enforces the requirements set under subsection 7.1(1) directly;
    2. a recognized quotation and trade reporting system that monitors and enforces requirements set under subsection 7.3(1) directly; or
    3. a regulation services provider.

Part 3
Manipulation and Fraud

Manipulation and Fraud

3.1 (1)    A person or company must not, directly or indirectly, engage in, or participate in any transaction or series of transactions, or method of trading relating to a trade in or acquisition of a security or any act, practice or course of conduct, if the person or company knows, or ought reasonably to know, that the transaction or series of transactions, or method of trading or act, practice or course of conduct

    1. results in or contributes to a misleading appearance of trading activity in, or an artificial price for, a security or a derivative of that security; or
    2. perpetrates a fraud on any person or company.

(2)          In Alberta, British Columbia, Ontario, Québec and Saskatchewan, instead of subsection (1), the provisions of the Securities Act (Alberta), the Securities Act (British Columbia), the Securities Act (Ontario), the Securities Act and the Derivatives Act (Québec) and The Securities Act, 1988 (Saskatchewan), respectively, relating to manipulation and fraud apply.

Part 4
Best Execution

Application of this Part

4.1         This Part does not apply to a dealer that is carrying on business as an ATS in compliance with section 6.1 of Nl 21-101.

Best Execution

4.2         A dealer and an adviser must make reasonable efforts to achieve best execution when acting for a client.

Order and Trade Information

4.3         To satisfy the requirements in section 4.2, a dealer or adviser must make reasonable efforts to use facilities providing information regarding orders and trades.

Part 5
Regulatory Halts

Regulatory Halts

5.1         If a regulation services provider, a recognized exchange, recognized quotation and trade reporting system or an exchange or quotation and trade reporting system that has been recognized for the purposes of this Instrument and Nl 21-101 makes a decision to prohibit trading in a particular security for a regulatory purpose, a person or company must not execute a trade for the purchase or sale of that security during the period in which the prohibition is in place.

Part 6
Order Protection

Marketplace Requirements for Order Protection

6.1 (1)    A marketplace must establish, maintain and ensure compliance with written policies and procedures that are reasonably designed

    1. to prevent trade-throughs on that marketplace other than the trade-throughs referred to in section 6.2; and
    2. to ensure that the marketplace, when executing a transaction that results in a trade-through referred to in section 6.2, is doing so in compliance with this Part.

(2)          A marketplace must regularly review and monitor the effectiveness of the policies and procedures required under subsection (1) and must promptly remedy any deficiencies in those policies and procedures.

(3)          At least 45 days before implementation, a marketplace must file with the securities regulatory authority and, if applicable, its regulation services provider the policies and procedures, and any significant changes to those policies and procedures, established under subsection (1).

List of Trade-throughs

6.2         For the purposes of paragraph 6.1(1)(a) the permitted trade-throughs are

    1. a trade-through that occurs when the marketplace has reasonably concluded that the marketplace displaying the protected order that was traded through was experiencing a failure, malfunction or material delay of its systems or equipment or ability to disseminate marketplace data;
    2. the execution of a directed-action order;
    3. a trade-through by a marketplace that simultaneously routes a directed-action order to execute against the total displayed volume of any protected order that is traded through;
    4. a trade-through if, immediately before the trade-through, the marketplace displaying the protected order that is traded through displays as its best price a protected order with a price that is equal or inferior to the price of the trade-through;
    5. a trade-through that results when executing
      1. a non-standard order;
      2. a calculated-price order; or
      3. a closing-price order;
    6. a trade-through that was executed at a time when the best protected bid for the security traded through was higher than the best protected offer.

Systems or Equipment Failure, Malfunction or Material Delay

6.3 (1)    If a marketplace experiences a failure, malfunction or material delay of its systems, equipment or its ability to disseminate marketplace data, the marketplace must immediately notify

    1. all other marketplaces;
    2. all regulation services providers;
    3. its marketplace participants; and
    4. any information processor or, if there is no information processor, any information vendor that disseminates its data under Part 7 of Nl 21-101.

(2)          If executing a transaction described in paragraph 6.2(a), and a notification has not been sent under subsection (1), the marketplace that is executing the transaction or routing the order for execution must immediately notify the following of the failure, malfunction or material delay:

    1. the marketplace that it reasonably concluded is experiencing a failure, malfunction or material delay of its systems or equipment or its ability to disseminate marketplace data;
    2. all regulation services providers;
    3. its marketplace participants; and
    4. any information processor disseminating information under Part 7 of Nl 21-101.

(3)          If a marketplace participant reasonably concludes that a marketplace displaying a protected order is experiencing a failure, malfunction or material delay of its systems or equipment or its ability to disseminate marketplace data, and routes an order to execute against a protected order on another marketplace displaying an inferior price, the marketplace participant must notify the following of the failure, malfunction or material delay

    1. the marketplace that may be experiencing a failure, malfunction or material delay of its systems or equipment or its ability to disseminate marketplace data; and
    2. all regulation services providers.

Marketplace Participant Requirements for Order Protection

6.4 (1)    A marketplace participant must not enter a directed-action order unless the marketplace participant has established, and maintains and ensures compliance with, written policies and procedures that are reasonably designed

    1. to prevent trade-throughs other than the trade-throughs listed below:
      1. a trade-through that occurs when the marketplace participant has reasonably concluded that the marketplace displaying the protected order that was traded through was experiencing a failure, malfunction or material delay of its systems or equipment or ability to disseminate marketplace data;
      2. a trade-through by a marketplace participant that simultaneously routes a directed-action order to execute against the total displayed volume of any protected order that is traded through;
      3. a trade-through if, immediately before the trade-through, the marketplace displaying the protected order that is traded through displays as its best price a protected order with a price that is equal or inferior to the price of the trade-through transaction;
      4. a trade-through that results when executing
        1. a non-standard order;
        2. a calculated-price order; or
        3. a closing-price order;
      5. a trade-through that was executed at a time when the best protected bid for the security traded through was higher than the best protected offer; and
    2. to ensure that when executing a trade-through listed in paragraphs (a)(i) to (a)(v), it is doing so in compliance with this Part.

(2)          A marketplace participant that enters a directed-action order must regularly review and monitor the effectiveness of the policies and procedures required under subsection (1) and must promptly remedy any deficiencies in those policies and procedures.

Locked or Crossed Orders

6.5         A marketplace participant or a marketplace that routes or reprices orders must not intentionally enter a displayed order on a marketplace that is subject to section 7.1 of Nl 21-101, at a price that,

    1. in the case of an order to purchase, is the same as or higher than the best protected offer; or
    2. in the case of an order to sell, is the same as or lower than the best protected bid.

Trading Hours

6.6         A marketplace must set the hours of trading to be observed by marketplace participants.

Trading Fees

6.6.1 (1) In this section

"exchange-traded fund" means a mutual fund

    1. the units of which are listed securities or quoted securities, and
    2. that is in continuous distribution in accordance with applicable securities legislation; and

"inter-listed security" means an exchange-traded security that is also listed on an exchange that is registered as a "national securities exchange" in the United States of America under section 6 of the 1934 Act.

(2)          A marketplace that is subject to section 7.1 of Nl 21-101 must not charge a fee for executing an order that was entered to execute against a displayed order on the marketplace that,

    1. in the case of an order involving an inter-listed security,
      1. is greater than $0.0030 per security traded for an equity security, or per unit traded for an exchange-traded fund, if the execution price of each security or unit traded is greater than or equal to $1.00, and
      2. is greater than $0.0004 per security traded for an equity security, or per unit traded for an exchange-traded fund, if the execution price of each security or unit traded is less than $1.00; or
    2. in the case of an order involving a security that is not an inter-listed security,
      1. is greater than $0.0017 per security traded for an equity security, or per unit traded for an exchange-traded fund, if the execution price of each security or unit traded is greater than or equal to $1.00, and
      2. is greater than $0.0004 per security traded for an equity security, or per unit traded for an exchange-traded fund, if the execution price of each security or unit traded is less than $1.00.

(3)          A recognized exchange must maintain a list of inter-listed securities that are listed on the exchange as of the last day of each calendar quarter.

(4)          A recognized exchange must publicly disclose on its website the list referred to in subsection (3)

    1. within 7 days after the last day of each calendar quarter, and
    2. for a period of at least 12 months commencing on the date it is publicly disclosed on the website.

Ceasing to be inter-listed security – fee transition period

6.6.2      If a security ceases to be an inter-listed security, paragraph 6.6.1(2)(b) does not apply if

    1. less than 35 days has passed since the first date, following the cessation, the list referred to in subsection 6.6.1(4) was publicly disclosed, and
    2. the fee charged is in compliance with paragraph 6.6.1(2)(a) as if the security were still an inter-listed security.

Anti-Avoidance

6.7         A person or company must not send an order to an exchange, quotation and trade reporting system or alternative trading system that does not carry on business in Canada in order to avoid executing against better-priced protected orders.

Application of this Part

6.8         In Québec, this Part, except for paragraph 6.3(1)(c), does not apply to standardized derivatives.

Part 7
Monitoring and Enforcement of Requirements Set by a Recognized Exchange and a Recognized Quotation and Trade Reporting System

Requirements for a Recognized Exchange

7.1 (1)    A recognized exchange must set requirements governing the conduct of its members, including requirements that the members will conduct trading activities in compliance with this Instrument.

(2)          A recognized exchange must monitor the conduct of its members and enforce the requirements set under subsection (1), either

    1. directly, or
    2. indirectly through a regulation services provider.

(3)          If a recognized exchange has entered into a written agreement under section 7.2, the recognized exchange must adopt requirements, as determined necessary by the regulation services provider, that govern the recognized exchange and the conduct of the exchange's members, and that enable the regulation services provider to effectively monitor trading on the exchange and across marketplaces.

Agreement between a Recognized Exchange and a Regulation Services Provider

7.2         A recognized exchange that monitors the conduct of its members indirectly through a regulation services provider must enter into a written agreement with the regulation services provider which provides that the regulation services provider will:

    1. monitor the conduct of the members of the recognized exchange,
    2. monitor the compliance of the recognized exchange with the requirements set under subsection 7.1(3), and
    3. enforce the requirements set under subsection 7.1(1).

Obligations of a Recognized Exchange to a Regulation Services Provider

7.2.1      A recognized exchange that has entered into a written agreement with a regulation services provider must

    1. transmit to the regulation services provider the information required under Part 11 of Nl 21-101 and any information reasonably required by the regulation services provider in the form and manner requested by the regulation services provider to effectively monitor:
      1. the conduct of and trading by marketplace participants on and across marketplaces, including the compliance of marketplace participants with the requirements set under subsection 7.1(1), and
      2. the conduct of the recognized exchange, including the compliance of the recognized exchange with the requirements set under subsection 7.1(3); and
    2. comply with all orders or directions made by the regulation services provider.

Requirements for a Recognized Quotation and Trade Reporting System

7.3 (1)    A recognized quotation and trade reporting system must set requirements governing the conduct of its users, including requirements that the users will conduct trading activities in compliance with this Instrument.

(2)          A recognized quotation and trade reporting system must monitor the conduct of its users and enforce the requirements set under subsection (1) either

    1. directly; or
    2. indirectly through a regulation services provider.

(3)          If a recognized quotation and trade reporting system has entered into a written agreement under section 7.4, the recognized quotation and trade reporting system must adopt requirements, as determined necessary by the regulation services provider, that govern the recognized quotation and trade reporting system and the conduct of the quotation and trade reporting system's users, and that enable the regulation services provider to effectively monitor trading on the recognized quotation and trade reporting system and across marketplaces.

Agreement between a Recognized Quotation and Trade Reporting System and a Regulation Services Provider

7.4         A recognized quotation and trade reporting system that monitors the conduct of its users indirectly through a regulation services provider must enter into a written agreement with the regulation services provider which provides that the regulation services provider will

    1. monitor the conduct of the users of the recognized quotation and trade reporting system,
    2. monitor the compliance of the recognized quotation and trade reporting system with the requirements set under subsection 7.3(3), and
    3. enforce the requirements set under subsection 7.3(1).

Obligations of a Quotation and Trade Reporting System to a Regulation Services Provider

7.4.1      A recognized quotation and trade reporting system that has entered into a written agreement with a regulation services provider must

    1. transmit to the regulation services provider the information required under Part 11 of Nl 21-101 and any information reasonably required by the regulation services provider in the form and manner requested by the regulation services provider to effectively monitor:
      1. the conduct of and trading by marketplace participants on and across marketplaces, including the compliance of marketplace participants with the requirements set under subsection 7.3(1), and
      2. the conduct of the recognized quotation and trade reporting system, including the compliance of the recognized quotation and trade reporting system with the requirements set under subsection 7.3(3); and
    2. comply with all orders or directions made by the regulation services provider.

Co-ordination of Monitoring and Enforcement

7.5         A regulation services provider, recognized exchange, or recognized quotation and trade reporting system must enter into a written agreement with all other regulation services providers, recognized exchanges, and recognized quotation and trade reporting systems to coordinate monitoring and enforcement of the requirements set under Parts 7 and 8.

Part 8
Monitoring and Enforcement Requirements for an Ats

Pre-condition to Trading on an ATS

8.1         An ATS must not execute a subscriber's order to buy or sell securities unless the ATS has executed and is subject to the written agreements required by sections 8.3 and 8.4.

Requirements Set by a Regulation Services Provider for an ATS

8.2 (1)    A regulation services provider must set requirements governing an ATS and its subscribers, including requirements that the ATS and its subscribers will conduct trading activities in compliance with this Instrument.

(2)          A regulation services provider must monitor the conduct of an ATS and its subscribers and must enforce the requirements set under subsection (1).

Agreement between an ATS and a Regulation Services Provider

8.3         An ATS and a regulation services provider must enter into a written agreement that provides

    1. that the ATS will conduct its trading activities in compliance with the requirements set under subsection 8.2(1);
    2. that the regulation services provider will monitor the conduct of the ATS and its subscribers;
    3. that the regulation services provider will enforce the requirements set under subsection 8.2(1);
    4. that the ATS will transmit to the regulation services provider the information required by Part 11 of Nl 21-101 and any other information reasonably required to effectively monitor:
      1. the conduct of and trading by marketplace participants on and across marketplaces, and
      2. the conduct of the ATS; and
    5. that the ATS will comply with all orders or directions made by the regulation services provider.

Agreement between an ATS and its Subscriber

8.4         An ATS and its subscriber must enter into a written agreement that provides

    1. that the subscriber will conduct its trading activities in compliance with the requirements set under subsection 8.2(1);
    2. that the subscriber acknowledges that the regulation services provider will monitor the conduct of the subscriber and enforce the requirements set under subsection 8.2(1);
    3. that the subscriber will comply with all orders or directions made by the regulation services provider in its capacity as a regulation services provider, including orders excluding the subscriber from trading on any marketplace.

8.5         [Repealed]

Part 9
Monitoring and Enforcement Requirements for an Inter-Dealer Bond Broker

Requirements Set by a Regulation Services Provider for an Inter-Dealer Bond Broker

9.1 (1)    A regulation services provider must set requirements governing an inter-dealer bond broker, including requirements that the inter-dealer bond broker will conduct trading activities in compliance with this Instrument.

(2)          A regulation services provider must monitor the conduct of an inter-dealer bond broker and must enforce the requirements set under subsection (1).

Agreement between an Inter-Dealer Bond Broker and a Regulation Services Provider

9.2         An inter-dealer bond broker and a regulation services provider must enter into a written agreement that provides

    1. that the inter-dealer bond broker will conduct its trading activities in compliance with the requirements set under subsection 9.1(1);
    2. that the regulation services provider will monitor the conduct of the inter-dealer bond broker;
    3. that the regulation services provider will enforce the requirements set under subsection 9.1(1); and
    4. that the inter-dealer bond broker will comply with all orders or directions made by the regulation services provider.

Exemption for an Inter-Dealer Bond Broker

9.3 (1)    Sections 9.1 and 9.2 do not apply to an inter-dealer bond broker, if the inter-dealer bond broker complies with the requirements of 11 ROC Rule 2800 Code of Conduct for Corporation Dealer Member Firms Trading in Wholesale Domestic Debt Markets, as amended.

(2)          [Repealed]

Part 10
Monitoring and Enforcement Requirements for a Dealer Executing Trades of Unlisted Debt Securities Outside of a Marketplace

Requirements Set by a Regulation Services Provider for a Dealer Executing Trades of Unlisted Debt Securities Outside of a Marketplace

10.1 (1)  A regulation services provider must set requirements governing a dealer executing trades of unlisted debt securities outside of a marketplace, including requirements that the dealer will conduct trading activities in compliance with this Instrument.

(2)          A regulation services provider must monitor the conduct of a dealer executing trades of unlisted debt securities outside of a marketplace and must enforce the requirements set under subsection (1).

Agreement between a Dealer Executing Trades of Unlisted Debt Securities Outside of a Marketplace and a Regulation Services Provider

10.2       A dealer executing trades of unlisted debt securities outside of a marketplace must enter into a written agreement with a regulation services provider that provides

    1. that the dealer will conduct its trading activities in compliance with the requirements set under subsection 10.1(1);
    2. that the regulation services provider will monitor the conduct of the dealer;
    3. that the regulation services provider will enforce the requirements set under subsection 10.1(1); and
    4. that the dealer will comply with all orders or directions made by the regulation services provider.

10.3       [Repealed]

Part 11
Audit Trail Requirements

Application of this Part

11.1 (1)  This Part does not apply to a dealer that is carrying on business as an ATS in compliance with section 6.1 of Nl 21-101.

(2)          A dealer or inter-dealer bond broker is exempt from the requirements in section 11.2 if the dealer or inter-dealer bond broker complies with similar requirements, for any securities specified, established by a regulation services provider and approved by the applicable securities regulatory authority.

Audit Trail Requirements for Dealers and Inter-Dealer Bond Brokers

11.2 (1)  Recording Requirements for Receipt or Origination of an Order — Immediately following the receipt or origination of an order for equity, fixed income and other securities identified by a regulation services provider, a dealer and inter-dealer bond broker must record in electronic form specific information relating to that order including,

    1. the order identifier;
    2. the dealer or inter-dealer bond broker identifier;
    3. the type, issuer, class, series and symbol of the security;
    4. the face amount or unit price of the order, if applicable;
    5. the number of securities to which the order applies;
    6. the strike date and strike price, if applicable;
    7. whether the order is a buy or sell order;
    8. whether the order is a short sale order, if applicable;
    9. whether the order is a market order, limit order or other type of order, and if the order is not a market order, the price at which the order is to trade;
    10. the date and time the order is first originated or received by the dealer or inter-dealer bond broker;
    11. whether the account is a retail, wholesale, employee, proprietary or any other type of account;
    12. the client account number or client identifier;
    13. the date and time that the order expires;
    14. whether the order is an intentional cross;
    15. whether the order is a jitney and if so, the underlying broker identifier;
    16. any client instructions or consents respecting the handling or trading of the order, if applicable;
    17. the currency of the order;
    18. an insider marker;
    19. any other markers required by a regulation services provider;
    20. each unique client identifier assigned to a client accessing the marketplace using direct electronic access; and
    21. whether the order is a directed-action order.

(2)          Recording Requirements for Transmission of an Order — Immediately following the transmission of an order for securities to a dealer, inter-dealer bond broker or a marketplace, a dealer or inter-dealer bond broker transmitting the order must add to the record of the order maintained in accordance with this section specific information relating to that order including,

    1. the dealer or inter-dealer bond broker identifier assigned to the dealer or inter-dealer bond broker transmitting the order and the identifier assigned to the dealer, inter-dealer bond broker or marketplace to which the order is transmitted; and
    2. the date and time the order is transmitted.

(3)          Recording Requirements for Variation, Correction or Cancellation of an Order — Immediately following the variation, correction or cancellation of an order for securities, a dealer or inter-dealer bond broker must add to the record of the order maintained in accordance with this section specific information relating to that order including,

    1. the date and time the variation, correction or cancellation was originated or received;
    2. whether the order was varied, corrected or cancelled on the instructions of the client, the dealer or the inter-dealer bond broker;
    3. in the case of variation or correction, any of the information required by subsection (1) which has been changed; and
    4. the date and time the variation, correction or cancellation of the order is entered.

(4)          Recording Requirements for Execution of an Order – Immediately following the execution of an order for securities, the dealer or inter-dealer bond broker must add to the record maintained in accordance with this section specific information relating to that order including,

    1. the identifier of the marketplace where the order was executed or the identifier of the dealer or inter-dealer bond broker executing the order if the order was not executed on a marketplace;
    2. the date and time of the execution of the order;
    3. whether the order was fully or partially executed;
    4. the number of securities bought or sold;
    5. whether the transaction was a cross;
    6. whether the dealer has executed the order as principal;
    7. the commission charged and all other transaction fees; and
    8. the price at which the order was executed, including mark-up or mark-down.

(5)          [Repealed]

(6)          [Repealed]

(7)          Record Preservation Requirements — A dealer and an inter-dealer bond broker must keep all records in electronic form for a period of not less than seven years from the creation of the record referred to in this section, and for the first two years in a readily accessible location.

Transmission in Electronic Form

11.3       A dealer and inter-dealer bond broker must transmit

    1. to a regulation services provider the information required by the regulation services provider, within ten business days, in electronic form; and
    2. to the securities regulatory authority the information required by the securities regulatory authority under securities legislation, within ten business days, in electronic form.

Part 12
Exemption

Exemption

12.1 (1)  The regulator or the securities regulatory authority may grant an exemption from this Instrument, in whole or in part, subject to such conditions or restrictions as may be imposed in the exemption.

(2)          Despite subsection (1), in Ontario, only the regulator may grant such an exemption.

Part 13
Effective Date

Effective Date

13.1       This Instrument comes into force on December 1, 2001.