IIROC is publishing for comment proposed amendments (Proposed Amendments) to the Universal Market Integrity Rules (UMIR) and the Dealer Member Rules (DMR) that would require Dealer Members to report client identifiers to IIROC.

As part of IIROC’s Three-Year Strategic Plan, IIROC adopted an objective to expand our portfolio of Enforcement Options to help us address wrongdoing in a fair and proportionate manner in order to inspire confidence and deter wrongdoing by having and using robust and appropriate tools. To further this objective, Enforcement Staff are considering two proposals to provide for alternative forms of disciplinary action.

IIROC is publishing for comment proposed amendments (Proposed Amendments) to the Universal Market Integrity Rules (UMIR) and the Dealer Member Rules (DMR) / IIROC Rules (together, IIROC requirements) that would regulate the trading of listed derivatives on a marketplace for which IIROC acts as the regulation services provider (RSP).

On June 24, 2020, the Board of Directors (the Board) of the Investment Industry Regulatory Organization of Canada (IIROC) approved the publication for comment of proposed amendments to Dealer Member Rule (DMR) subsections 100.2(j) and 100.2(k), and IIROC Rule section 5442 that would allow a grace period in applying the swap counterparty margin requirements (collectively, Proposed Amendments).

Following the publication for comments by the Canadian Securities Administrators (CSA) of proposed National Instrument 93-101 – Derivatives: Business Conduct (NI 93-101) and National Instrument 93-102 – Derivatives: Registration (NI 93-102), IIROC performed a complete review of all its Dealer Member related rules (IIROC Rules) to determine:

IIROC is proposing amendments to Dealer Member Rule (DMR) 100.2 and IIROC Rule 5400 that would allow margining of structured products using either a fixed rate or an alternative component margining methodology (Proposed Amendments).

The main purpose of the Proposed Amendments is to formally recognize a margin methodology for structured products as the current DMR and IIROC Rules do not specifically address margin requirements for these products.

The Proposed Amendments would: