Variation and Cancellation of Odd Lot Trades

IIROC has reviewed its regulatory intervention practices for odd lot trades.1 Effective immediately, IIROC is discontinuing its former practice of cancelling or varying certain odd lot trades.

Many marketplaces that support odd lot trading do not prevent odd lot trades from executing at unreasonable prices. Despite this risk, some Participants continue to enter deep limit prices on odd lot orders, which may result in executions at unreasonable prices. In the past, IIROC has intervened by cancelling or varying these odd lot trades that are not voluntarily amended.

As further detailed in IIROC’s Annual Consolidated Compliance Report, IIROC has reevaluated its regulatory intervention practices in these cases and will no longer cancel or vary these odd lot trades. This change in practice is consistent with the principles and guidelines described in IIROC Notice 12‑0258 – Guidance on Regulatory Intervention for the Variation or Cancellation of Trades.

• 1Rule 10.9(1)(d) of UMIR provides a Market Integrity Official with the power to vary or cancel any trade which, in the opinion of the Market Integrity Official, is unreasonable or not in compliance with UMIR or any Policy.