6.1 Entry of Orders to a Marketplace

Regulatory History:

Effective March 9, 2007, the applicable securities commissions approved an amendment to subsection (1) of Rule 6.1 to add the phrase “in respect of an order with a price of less than $0.50” at the end of the subsection and to add Part 1 of Policy 6.1. See Market Integrity Notice 2007‑002 – “Provisions Respecting Competitive Marketplaces” (February 26, 2007).

On March 2, 2012, the applicable securities commissions approved an amendment to section 6.1, effective October 15, 2012, to add a new subsection (3). See IIROC Notice 12‑0078 – “Provisions Respecting Regulation of Short Sales and Failed Trades” (March 2, 2012). Effective March 1, 2014, this subsection is renumbered subsection (6) and subsections (7)-(9) relating to third-party electronic access to marketplaces are added. See IIROC Notice 13‑0184 “Provisions Respecting Third-Party Electronic Access to Marketplaces” (July 4, 2013).

On April 13, 2012, the applicable securities commissions approved amendments to section 6.1, effective October 10, 2012, to add subsections (3), (4) and (5). See IIROC Notice 12‑0130 – “Provisions Respecting Dark Liquidity” (April 13, 2012).

On April 13, 2012, the applicable securities commissions approved an amendment to Policy 6.1, effective October 10, 2012, to repeal and replace Part 1. See IIROC Notice 12‑0130 – “Provisions Respecting Dark Liquidity” (April 13, 2012). Prior to that effective date, Part 1 provided:

Part 1 – Exceptions for Certain Types of Orders

Notwithstanding that all orders for a security at a price of $0.50 or more must be entered on a marketplace at a price that does not include a fraction or a part of a cent, an order which is entered on a marketplace as a Basis Order, Call Market Order or a Volume-Weighted Average Price Order may execute at such price increment as established by the marketplace for the execution of such orders provided, unless otherwise permitted by the information processor or information vendor, that the marketplace shall report the price at which the trade was executed to the information processor or an information vendor as the nearest trading increment and if the price results in one-half of a trading increment the price shall be rounded up to the next trading increment.

On July 4, 2013, the applicable securities commissions approved amendments to section 6.1, effective March 1, 2014, to add subsections (7), (8) and (9) and to renumber former subsection 6.1(3) as 6.1(6). See IIROC Notice 13‑0184 - “Provisions Respecting Third-Party Electronic Access to Marketplaces” (July 4, 2013).

On November 15, 2024, the applicable securities commissions approved amendments to UMIR to add a new positive requirement to have, prior to order entry, a reasonable expectation to settle on settlement date any order that upon execution would be a short sale, as well as related supervisory and gatekeeper requirements. See CIRO Bulletin 24-0349 – “Amendments Respecting the Reasonable Expectation to Settle a Short Sale” (December 5, 2024).