1. Order and Trade Record - In addition to any information required to be recorded by a Participant in accordance with Part 11 of the Trading Rules, a Participant shall:
   1. immediately following the receipt or origination of an order, record:
      1. all order designations required by clause (b) of subsection (1) of Rule 6.2,
      2. the identifier of any investment adviser or registered representative receiving the order, and
      3. any information respecting the special terms attaching to the order required by subsection (3) of Rule 6.2, if applicable;
   2. immediately following the entry of an order to trade on a marketplace, add to the record:
      1. the identifier of the Participant through which any trade would be cleared and settled,
      2. the identifier assigned to the marketplace on which the order is entered; and
   3. immediately following the variation or correction of an order, add to the record any information required by clause (a) which has been changed.
2. Transmittal of Order Information to a Market Regulator - The Participant shall transmit the record of the order required to be maintained by the Participant by this section to:
   1. the Market Regulator for the marketplace on which the trade was executed; or
   2. if the order was not executed on a marketplace in accordance with Rule 6.4,
      1. a Market Regulator if the security is not listed on an Exchange or traded on a QTRS, and

      2. the Market Regulator for the Exchange or the QTRS on which the security is listed or quoted,

         at the time and in such manner and form as may be required by the Market Regulator.

3. Provision of Additional Information - In addition to any information provided by a Participant to a Market Regulator in accordance with subsection (2), the Participant shall provide to the Market Regulator forthwith upon request in such form and manner as may be reasonably required by the Market Regulator:
   1. any additional information respecting the order or trade reasonably requested; and
   2. information respecting any prior or subsequent order or trade in the security or the derivative or a related security or a related derivative undertaken by the Participant on any marketplace.
4. Provision of Information by a Access Person - Where an order has been entered on a marketplace by an Access Person, the Access Person shall provide to the Market Regulator of the marketplace on which the order was entered or the Market Regulator of the marketplace on which the order was executed forthwith upon request in such form and manner as may be reasonably required by the Market Regulator:
   1. any information respecting the order or trade reasonably requested; and
   2. information respecting any prior or subsequent order or trade in the security or a related security undertaken by the Access Person on any marketplace.

1. A Participant shall calculate, as of 15th day and as of the last day of each calendar month, the aggregate short position of each individual account in respect of each listed security and quoted security.
2. Unless a Participant maintains the account in which an Access Person has the short position in respect of a listed security or quoted security, the Access Person shall calculate, as of the 15th day and as of the last day of each calendar month, the aggregate short position of the Access Person in respect of each listed security and quoted security.
3. Unless otherwise provided, each Participant and Access Person required to file a report in accordance with subsection (1) or (2) shall file a report of the calculation with a Market Regulator in such form as may be required by the Market Regulator not later than two trading days following the date on which the calculation is to be made.

1. A Market Integrity Official may, in governing trading in securities or derivatives on the marketplace:
   1. delay, halt or suspend trading in a security or a derivative at any time and for such period of time as such Market Integrity Official may consider appropriate in the interest of a fair and orderly market;
   2. refuse to allow any bid price or ask price to be recorded at any time if, in the opinion of such Market Integrity Official, such quotation is unreasonable or not in compliance with UMIR or any Policy;
   3. settle any dispute arising from trading in securities or derivatives on the marketplace where such authority is not otherwise provided for in any requirement governing trading on the marketplace;
   4. vary or cancel any trade which, in the opinion of such Market Integrity Official, is unreasonable or not in compliance with UMIR or any Policy;
   5. vary or cancel any trade upon application of the buyer and seller provided such application has been made by the end of trading on the day following the day on which the trade was made or such earlier time as may be established in any Marketplace Rule of the marketplace on which the trade was executed;
   6. in respect of any trade which has not complied with the requirements of Part 5, correct the price of the trade to a price at which the trade would have complied with such requirement, or
   7. require the Participant or Access Person to satisfy any order included in the disclosed volume if the trade by the Participant or Access Person failed to comply with requirements of section 6.4 of the Trading Rules;
      
      (g.1) in respect of any trade of a principal order or non-client order that has not complied with the requirements of Rule 5.3, require the Participant to satisfy the client order at the price and up to the volume of the trade which failed to comply with the requirements of Rule 5.3.
   8. provide to any person an interpretation of any provision of UMIR and any Policy in accordance with the purpose and intent of the provision and shall ensure that any such interpretation is observed by such person;
   9. limit trading to liquidation of a position in a listed derivative only;
   10. order liquidation of a position in a listed derivative in all or a portion of an account;
   11. restrict trading in a listed derivative to a specific price range;
   12. exercise such powers as are specifically granted to a Market Regulator or Market Integrity Official by UMIR and any Policy; and
   13. exercise such powers as are specifically granted to the Market Regulator by the marketplace where the marketplace is entitled to grant such powers.
2. In determining whether any quotation or trade in a security is unreasonable, the Market Regulator shall consider:
   1. prevailing market conditions;
   2. the last sale price of:
      1. the security as displayed in a consolidated market display, or
      2. the derivative as displayed on a marketplace;
   3. patterns of trading in the security or derivative on the marketplace including volatility, volume and number of transactions;
   4. whether material information concerning the security or underlying security of a derivative is in the process of being disseminated to the public; and
   5. the extent of the interest of the person for whose account the order is entered in changing the price or quotation for the security or derivative.
3. In connection with the exercise of a power under this Rule, upon the verbal, written or electronic request of the Market Integrity Official, the Subject Person shall, within the time period specified by the Market Integrity Official:
   1. provide any information, document or records in the possession or control of the person that the Market Regulator determines may be relevant to the exercise of a power by the Market Regulator and such information, document or records shall be provided in such manner and form, including electronically, as may be required by the Market Regulator; and
   2. allow the inspection of, and permit copies to be taken of, any information, document or records in the possession or control of the person that the Market Regulator determines may be relevant to the exercise of a power by the Market Regulator.
4. If a Market Integrity Official has provided notice to a Subject Person pursuant to subsection (3), the Subject Person shall, notwithstanding any policy or procedure of the Subject Person with respect to the retention of information, documents or records, retain any document or record in the possession or control of the Subject Person that is relevant to the exercise of the power by the Market Integrity Official for a period of 30 days from the date of the notice or such other period as may be specified by the Market Regulator.

1. A related entity of a Participant and a director, officer, partner or employee of the Participant or a related entity of the Participant shall:
   1. comply with the provisions of UMIR and any Policies with respect to specific unacceptable activities, manipulative and deceptive activities, short sales and frontrunning as if references to “Participant” in Rules 2.1, 2.2, 2.3, 4.1, and Part 3 of UMIR included reference to such person; and
   2. in respect of the failure to comply with the provisions of UMIR and the Policies referred to in clause (a), be subject to the practice and procedures and to penalties and remedies set out in this Part.
2. A related entity of an Access Person and a director, officer, partner or employee of the Access Person or a related entity of the Access Person shall in respect of trading on a marketplace on behalf of the Access Person or related entity of the Access Person:
   1. comply with the provisions of UMIR and any Policies with respect to specific unacceptable activities, manipulative and deceptive activities and short sales as if references to “Access Person” in Rules 2.1, 2.2, 2.3 and Part 3 of UMIR included reference to such person; and
   2. in respect of the failure to comply with the provisions of UMIR and the Policies referred to in clause (a), be subject to the practice and procedures and to the penalties and remedies set out in this Part.
3. If, in the opinion of a Market Regulator, a particular person to whom UMIR applies, including any particular person to whom UMIR has been extended in accordance with subsection (1) and (2), has organized their business and affairs for the purpose of avoiding the application of any provision of UMIR, the Market Regulator may designate any person involved in such business and affairs as a person acting in conjunction with the particular person.
4. Upon a Market Regulator making a designation in accordance with subsection (3), the Market Regulator shall provide notice of such designation to:
   1. the particular person;
   2. the designated person;
   3. each Market Regulator; and
   4. each applicable securities regulatory authority.

1. Unless otherwise defined or interpreted, every term used in UMIR that is:
   1. defined in subsection 1.1(3) of National Instrument 14-101 – Definitions has the meaning ascribed to it in that subsection;
   2. defined or interpreted in the Marketplace Operation Instrument has the meaning ascribed to it in that National Instrument;
   3. defined or interpreted in the Electronic Trading Rules has the meaning ascribed to it in that National Instrument; and
   4. a reference to a requirement of an Exchange or a QTRS shall have the meaning ascribed to it in the applicable Marketplace Rule.

2. For the purposes of UMIR, the following terms shall be as defined by applicable securities legislation except that:

   “person” includes any corporation, incorporated association, incorporated syndicate or other incorporated organization.

   “trade” includes a purchase or acquisition of a security or a derivative for valuable consideration in addition to any sale or disposition of a security or a derivative for valuable consideration.

   “security” does not include a derivative.

3. In determining the value of an order for the purposes of Rule 6.3, Rule 6.4 and Rule 8.1, the value shall be calculated as of the time of the receipt or origination of the order and shall be calculated by multiplying the number of units of the security to be bought or sold under the order by:
   1. in the case of a limit order for the purchase of a security, the lesser of:
      1. the specified maximum price in the order, and
      2. the best ask price;
   2. in the case of a limit order for the sale of a security, the greater of:
      1. the specified minimum price in the order, and
      2. the best bid price;
   3. in the case of a market order for the purchase of a security, the best ask price; and
   4. in the case of a market order for the sale of a security, the best bid price.
4. For the purposes of determining the “last sale price”, if a sale of at least a standard trading unit of a particular security has not been previously displayed in a consolidated market display the last sale price shall be deemed to be the price:
   1. of the last sale of the security on an Exchange, if the security is a listed security;
   2. of the last sale of the security on a QTRS, if the security is a quoted security;
   3. at which the security has been issued or distributed to the public, if the security has not previously traded on a marketplace; and that has been accepted by a Market Regulator, in any other circumstance.
   4. that has been accepted by a Market Regulator, in any other circumstance.
5. For the purposes of determining the price at which a security is trading for the purposes of the definition of a “standard trading unit”, the price shall be the last sale price of the particular security on the immediately preceding trading day on the Exchange on which the security is listed or the QTRS on which the security is quoted.
6. For the purposes of the definition of “restricted period”:
   1. the selling process shall be considered to end:
      1. in the case of a prospectus distribution, if a receipt has been issued for the final prospectus by the applicable securities regulatory authority and the Participant has allocated all of its portion of the securities to be distributed under the prospectus and all selling efforts have ceased, and
      2. in the case of a restricted private placement, the Participant has allocated all of its portion of the securities to be distributed under the offering;
   2. stabilization arrangements shall be considered to have terminated on the date that is the earlier of when:
      1. in the case of a syndicate of underwriters or agents, the lead underwriter or agent determines, in accordance with the syndication agreement, that the syndication agreement has been terminated such that any purchase or sale of a restricted security by a Participant after the time of termination is not subject to the stabilization arrangements or otherwise made jointly for the Participants that were party to the stabilization arrangements, or
      2. the offered securities, exclusive of any securities that may be issued pursuant to the exercise of an option granted to a dealer-restricted person to cover over-allotment of securities in the distribution, are issued and all statutory rights of withdrawal in connection with such issuance have expired; and
   3. if the offering price is determined by a formula involving trading activity in the offered security or a connected security on one or more marketplaces for a period of time, the offering price shall be considered to be determined on the first trading day included in the calculation for the purposes of the formula.
7. Where used to indicate a relationship with an entity, associated entity has the meaning ascribed to the term "associate" in applicable securities legislation and also includes any person of which the entity beneficially owns voting securities carrying more than 10 per cent of the voting rights attached to all outstanding voting securities of the person.
8. For the purposes of determining the “best ask price” or the “best bid price” at any particular time reference is made to orders:
   1. contained in a consolidated market display for a protected marketplace that is then open for trading and in respect of which trading in the particular security or

   2. displayed on an Exchange that is then open for trading and in respect of which trading in the particular derivative

      on that marketplace has not been:

      1. halted, suspended or delayed for regulatory purposes in accordance with Rule 9.1; or
      2. halted, suspended or delayed in accordance with a Marketplace Rule or a requirement of the marketplace.

Policy 1.2 - Interpretation

Part 1 – Meaning of “acting jointly or in concert”

The definitions of a “dealer-restricted person” and “issuer-restricted person” include a person acting jointly or in concert with a person that is also a dealer-restricted person or an issuer-restricted person, as applicable, for a particular transaction. For the purposes of these definitions, “acting jointly or in concert” has a similar meaning to that phrase as defined in section 91 of the Securities Act (Ontario) or similar provisions of applicable securities legislation, with necessary modifications. In the context of these definitions only, it is a question of fact whether a person is acting jointly or in concert with a dealer- or issuer-restricted person and, without limiting the generality of the foregoing, every person who, as a result of an agreement, commitment or understanding, whether formal or informal, with a dealer-restricted person or an issuer-restricted person, bids for or purchases any restricted security will be presumed to be acting jointly or in concert with such dealer- or issuer-restricted person.

Part 2 – Meaning of “selling process has ended”

The definition of “restricted period”, with respect to a prospectus distribution and a “restricted private placement”, refers to the end of the period as the date that the selling process ends and all stabilization arrangements relating to the offered security are terminated. Rule 1.2(6)(a) provides interpretation as to when the selling process is considered to end. As further clarification, the selling process is considered to end for a prospectus distribution when the receipt for the prospectus has been issued, the Participant has distributed all securities allocated to it and, is no longer stabilizing, all selling efforts have ceased and the syndicate is broken. Selling efforts have ceased when the Participant is no longer making efforts to sell, and there is no intention to exercise an over-allotment option other than to cover the syndicate’s short position. If the Participant or syndicate subsequently exercises an over-allotment option in an amount that exceeds the syndicate short position, the selling efforts would not be considered to have ceased. Securities allocated to a Participant that are held and transferred to the inventory account of the Participant at the end of the distribution are considered distributed. Subsequent sales of such securities are secondary market transactions and should occur on a marketplace subject to any applicable exemptions (unless the subsequent sale transaction is a distribution by prospectus). To provide certainty around when the distribution has ended, appropriate steps should be taken to move the securities from the syndication account to the inventory account of the Participant.

Part 3 – “Ought Reasonably to Know”

Rule 2.2 prohibits a Participant or Access Person from doing various acts if the Participant or Access Person “knows or ought reasonably to know” that a particular method, act or practice was manipulative or deceptive or that the effect of entering an order or executing a trade would create or could reasonably be expected to create a false or misleading appearance of trading activity or interest or an artificial price. Rule 2.3 prohibits a Participant or Access Person from entering an order on a marketplace or executing a trade if the Participant or Access Person “knows or ought reasonably to know” that the entry of the order or the execution of the trade would result in the violation of various securities or regulatory requirements.

In determining what a person “ought reasonably to know” reference would be made to what a Participant or Access Person would know, acting honestly and in good faith, and exercising the care, diligence and skill that a reasonably prudent Participant or Access Person would exercise in comparable circumstances. In essence, the test becomes what could a Participant or Access Person have been expected to know if the Participant or Access Person had:

• adopted various policies and procedures as required by applicable securities legislation, self-regulatory entities, UMIR and the Policies; and
• conscientiously followed or observed the policies and procedures.

Part 4 - Applicable Regulatory Standards

Rule 7.1 requires each Participant prior to the entry of an order on a marketplace to comply with applicable regulatory standards with respect to the review, acceptance and approval of orders. Each Participant that is a dealer must be a member of a self-regulatory entity. Each Participant will be subject to the by-laws, regulations and policies as adopted from time to time by the applicable self-regulatory entity. These requirements may include an obligation on the member to “use due diligence to learn and remain informed of the essential facts relative to every customer and to every order or account accepted.” While knowledge by a Participant of “essential facts” of every customer and order is necessary to determine the suitability of any investment for a client, such requirement is not limited to that single application. The exercise of due diligence to learn essential facts “relative to every customer and to every order” is a central component of the “Gatekeeper Obligation” embodied within the trading supervision obligation under Rule 7.1 and 10.16. In addition, securities legislation applicable in a jurisdiction may impose review standards on Participants respecting orders and accounts. The regulatory standards that may apply to a particular order may vary depending upon a number of circumstances including:

• the requirements of any self-regulatory entity of which the Participant is a member;
• the type of account from which the order is received or originated; and
• the securities legislation in the jurisdiction applicable to the order.

1. Each Participant and Access Person shall comply with applicable Requirements.
2. For the purposes of subsection (1), a Participant or Access Person shall, with respect to a particular order, comply with the Marketplace Rules of:
   1. the marketplace on which the particular order is entered; and
   2. the marketplace on which the particular order is executed.
3. Each marketplace shall comply with the applicable Requirements, the Market Operation Instrument and any other applicable securities regulatory requirements.
4. The Market Regulator shall promptly report to the applicable securities regulatory authorities, if the Market Regulator believes that a marketplace has failed to comply with the requirements of subsection (3) or has otherwise engaged in misconduct or apparent misconduct.
5. A Subject Person shall not do any act that the Subject Person knows or could have known after the exercise of reasonable diligence would impede or obstruct the ability of a Market Integrity Official to exercise a power under Rule 10.9.
6. Without limiting the generality of subsection (5), a Subject Person shall be considered to have impeded or obstructed the ability of a Market Integrity Official to exercise a power if the Subject Person:
   1. destroys or renders inaccessible any document in the possession or control of the Subject Person, whether or not the document is of the form or type that must be retained in accordance with Rule 10.12, that is relevant to the exercise of power;
   2. provides any information, document, record or statement to the Market Integrity Official in connection with the exercise of a power that is misleading or untrue or does not state a fact that is required to be stated or that is necessary to make the information, document, record or statement not misleading; or
   3. persuades or attempts to persuade any person by whatever means to:
      1. destroy or render inaccessible any document in the possession or control of that other person relevant to the exercise of power, or
      2. provide any information, document, record or statement to the Market Integrity Official in connection with the exercise of a power that would
      3. be misleading or untrue or would not state a fact that is required to be stated or that is necessary to make the information, document, record or statement not misleading.
7. Without limiting the availability of other defenses, a Subject Person shall not be considered to have breached subsection (5) or (6) if the Subject Person did not know or could not have known after the exercise of reasonable diligence that:
   1. the document was relevant to the exercise of a power; or
   2. the information, document, record or statement was or would be misleading or untrue or that it omitted to state a fact that was required to be stated or that was necessary to make the information, document, record or statement not misleading in light of the circumstance in which it was made or would be made.

POLICY 10.1 – COMPLIANCE REQUIREMENT

Part 1 – Monitoring for Compliance

Rule 10.1 requires each Participant and Access Person to comply with applicable Requirements. The term “Requirements” is defined as meaning:

• UMIR;
• the Policies;
• the Trading Rules;
• the Marketplace Rules;
• any direction, order or decision of the Market Regulator or a Market Integrity Official; and
• securities legislation,

as amended, supplemented and in effect from time to time.

The Market Regulator will monitor the activities of Subject Persons for compliance with each aspect of the definition of Requirements and use the powers under Corporation Rule 8100 to conduct any enforcement investigation into possible non-compliance. If the Subject Person has not complied with:

• UMIR, the Policies or any direction, order or decision of the Market Regulator or a Market Integrity Official, the Market Regulator may undertake a disciplinary proceeding pursuant to Corporation Rule 8200 or Rule 10.5 with respect to temporary restriction of access;
• the Trading Rules or securities legislation, the Market Regulator may, pursuant to the exchange of information provided for under Rule 10.13, refer the matter to the applicable securities regulatory authority to be dealt with in accordance with applicable securities legislation; and
• Marketplace Rules, the Market Regulator may undertake a disciplinary proceeding pursuant to Corporation Rule 8200 or Rule 10.5 with respect to temporary restriction of access, if the marketplace has retained the Market Regulator to conduct disciplinary proceedings on behalf of the marketplace in accordance with an agreement with the Market Regulator contemplated by Part 7 of the Trading Rules, otherwise the Market Regulator may refer the matter to the marketplace to be dealt with in accordance with the Marketplaces Rules of that marketplace.