Investor Alert:
CIRO is issuing a warning to Canadian investors regarding Canada Token Trade.
This Guidance Note, which is effective on January 19, 2023, builds on prior guidance on the application of a single-stock circuit breaker1 (“SSCB”) and applies SSCBs to Canadian Depositary Receipts (“CDRs”).
All other aspects of prior SSCB guidance are unchanged.
We are applying SSCBs to CDRs in order to enhance market integrity in the trading of these securities. Similar to ETFs which are comprised of listed securities, CDRs have underlying securities that are listed for trading on foreign markets, many of which are considered highly liquid. Therefore, ensuring that we may halt the trading of a particular CDR that experiences a rapid price movement will help foster a fair and orderly market for these types of securities. We note that certain CDRs are currently subject to SSCBs as they meet the threshold for being an actively-traded security. We believe that it is appropriate to impose SSCBs on all CDRs given the recent growth and proliferation of CDRs in the Canadian markets.
Until changed with the issuance of further guidance, SSCBs: