Investor Alert:
CIRO is issuing a warning to Canadian investors regarding Canada Token Trade.
This Guidance Note builds on prior guidance on the triggering of a single-stock circuit breaker1 (“SSCB”) and the operation of marketplace thresholds2 .
This guidance:
All other aspects of the prior SSCB and marketplace thresholds guidance are unchanged.
Until changed with the issuance of further guidance, SSCBs:
Qualifying Leveraged ETF SSCB thresholds are calculated by multiplying the trigger levels for qualifying securities other than Leveraged ETFs with the leverage ratio of the Leveraged ETF. For example, for a qualifying Leveraged ETF with a 2:1 ratio, the trigger levels are set at twice the usual levels for qualifying securities that are not Leveraged ETFs. For qualifying Leveraged ETFs with a ratio of 2:1, a SSCB will trigger:
Qualifying security type |
Trigger level between 9:50 a.m. and 3:30 p.m. |
Trigger level between 9:30 a.m. and 9:50 a.m. or within 30 minutes after a regulatory halt |
Qualifying Security other than a Qualifying Leveraged ETF |
Price change of at least 10% and 20 trading increments |
Price change of at least 20% and 40 trading increments |
Qualifying Leveraged ETF with a 2:1 ratio |
Price change of at least 20% and 40 trading increments |
Price change of least 40% and 80 trading increments |
Until changed with the issuance of further guidance, marketplace thresholds:
Marketplace thresholds are intended to generally preclude the execution of an order that would otherwise trigger an SSCB. Therefore, to accommodate the SSCB trigger change for Leveraged ETFs, we are adding a new marketplace threshold specific to Leveraged ETFs.
The following table sets out the price parameters for marketplace thresholds:
Class of Security | Price Category of Security | Threshold Level |
Securities not subject to SSCBs | 0.00 > – < .50 | 300% |
.50 ≥ – < 1.00 | 50% | |
1.00 ≥ – < 5.00 | 30% | |
5.00 ≥ – < 10.00 | 20% | |
10.00 ≥ – < 30.00 | 15% | |
≥30.00 | 10% | |
Exchange-listed Debt | All price categories | 20% |
Exchange-Traded Funds (other than Leveraged Exchange-Traded Funds) | All price categories | 10% |
Leveraged Exchange-Traded Funds | All price categories | multiple of leverage multiplied by 10%7 |
Securities subject to SSCBs8
(excluding all Exchange-Traded Funds) |
All price categories | 10% |