10.9 Power of Market Integrity Officials

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.
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.
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.
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.

Defined Terms:

NI 21-101 section 1.1 - “order”

NI 21-101 section 1.4 – Interpretation -- “security”

UMIR section 1.1 – “client order”, “consolidated market display”, “derivative” “disclosed volume”, “document”, “last sale price”, “listed derivative”, “Market Integrity Official”, “Market Regulator”, “marketplace”, “Marketplace Rules”, “non-client order”, “Participant”, “Policy”, “principal order”, “Subject Person” and “UMIR”

UMIR section 1.2(2) – “person” and “trade”

Bulletins

Partially Repealed Guidance: See IIROC Notice 14-0170 - “Guidance Respecting the Expansion of Single-Stock Circuit Breakers” (July 10, 2014), which repeals and replaces IIROC Notice 12-0040. The method IIROC uses to determine an actively-traded security set out in the “securities covered” section of Notice 14-0170 was repealed and replaced by IIROC Notice 20-0009 – “Additional Guidance Respecting Securities Covered by Single-Stock Circuit Breakers” (January 14, 2020).

Additional Guidance Respecting Securities Covered by Single-Stock Circuit Breakers

January 14, 2020

Guidance Note

20-0009

Guidance Respecting the Expansion of Single-Stock Circuit Breakers - Partially Repealed Guidance

July 10, 2014

Guidance Note

14-0170

Regulatory History:

Effective March 11, 2005, the applicable securities commissions approved amendments to section 10.9 to add subsections (3) and (4). See Market Integrity Notice 2005-008 – Notice of Amendment Approval - “Provisions Respecting Impeding or Obstructing A Market Regulator” (March 11, 2005).

Effective March 9, 2007, the applicable securities commissions approved an amendment to subsection (1) of Rule 10.9 to replace the word “disallow” with the word “vary” in clause (d) and to add clause (g.1). See Market Integrity Notice 2007‑002 - “Provisions Respecting Competitive Marketplaces” (February 26, 2007).

Effective May 16, 2008, the applicable securities commissions approved an amendment to clause (g) of subsection (1) of Rule 10.9 to replace the phrase “volume of the trade which” with “disclosed volume if the trade”. See Market Integrity Notice 2008-008 - “Provisions Respecting “Off-Marketplace” Trades” (May 16, 2008).

Effective December 9, 2013, the applicable securities commissions approved amendments to the French version of UMIR. See IIROC Notice 13‑0294 - “Rules Notice – Notice of Approval and Implementation – UMIR – Amendments to the French version of UMIR” (December 9, 2013).

Effective September 18, 2015, the applicable securities commissions approved an amendment to clause (g) of subsection (1) of Rule 10.9. See IIROC Notice 15‑0211 - Notice of Approval - “Provisions Respecting Unprotected Transparent Marketplaces and the Order Protection Rule” (September 18, 2015).

Effective September 1, 2016, the applicable securities commissions approved an amendment to make editorial changes to Rule 10.9. See IIROC Notice 16‑0122 - “Implementation of the consolidated IIROC Enforcement, Examination and Approval Rules” (June 9, 2016).

Effective December 14, 2022, the applicable securities commissions approved amendments to UMIR 10.9. See IIROC Notice 22-0140 - “Amendments Respecting the Trading of Derivatives on a Marketplace” (September 15, 2022).

Disciplinary History

There is no history log for this rule.

Part 1 - Definitions and Interpretation

1.1 Definitions

1.2 Interpretation

1.3 Transitional Provision

Part 2 - Abusive Trading

2.1 Specific Unacceptable Activities

2.2 Manipulative and Deceptive Activities

2.3 Improper Orders and Trades

Part 3 - Short Selling

3.1 Restrictions on Short Selling – Repealed