Alert:

Canada Post continues to operate, but with expected delays in delivery. Should a strike occur, Members must take steps to ensure that document delivery requirements prescribed under CIRO Rules continue to be met.

Investor Alert

The Canadian Investment Regulatory Organization (CIRO) is warning Canadian investors not to be misled by Morgan PRE Limited (preforex[.]com).

Part 7 - Trading in a Marketplace

7.2 Proficiency Obligations

No order to purchase or sell a security or a derivative shall be entered by a Participant on a marketplace unless the Participant or the director, officer, partner or employee of the Participant entering the order or responsible for the order has:
1. completed the Trader Training Course of the Canadian Securities Institute or such course, examination or other means of demonstrating proficiency in UMIR and Policies as may be acceptable to the Market Regulator of the marketplace on which the order is entered or the applicable securities regulatory authority; or
2. received approval of an Exchange or QTRS for the entry of orders to the trading system of that Exchange or QTRS.
A marketplace shall ensure that each Access Person with access to that marketplace is trained in such provisions of UMIR and such Policies as may be applicable to an Access Person.

Defined Terms:

NI 14-101 section 1.1(3) – “securities regulatory authority”

NI 21-101 section 1.1 – “order”

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

UMIR section 1.1 – “Access Person”, “derivative”, “employee”, “Exchange”, “Market Regulator”, “marketplace”, “Participant”, “Policy”, “QTRS” and “UMIR”

There are no related bulletins available for this Rule.

Regulatory History:

In connection with the recognition of IIROC and its adoption of UMIR, the applicable securities commissions approved amendments to Rule 7.2 that came into force on June 1, 2008 to make editorial changes. See Footnote 1 of Status of Amendments.

Effective December 14, 2022, the applicable securities commissions approved amendments to UMIR 7.2 to expand proficiency obligations to the trading of derivatives on a marketplace. 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

3.2 Prohibition on the Entry of Orders

3.3 Reasonable expectation to settle prior to the entry of an order for a short sale

3.4 Short Selling after a Reportable Extended Failed Trade

Part 4 - Frontrunning

4.1 Frontrunning

Part 5 - Best Execution Obligation

5.1 Best Execution of Client Orders – Repealed

5.2 Best Price Obligation – Repealed

5.3 Client Priority

Part 6 - Order Entry and Exposure

6.1 Entry of Orders to a Marketplace

6.2 Designation and Identifiers

6.3 Exposure of Client Orders

6.4 Trades to be on a Marketplace

6.5 Minimum Size Requirements of Certain Orders Entered on a Marketplace

6.6 Provision of Price Improvement by a Dark Order

Part 7 - Trading in a Marketplace

7.1 Trading Supervision Obligations

7.2 Proficiency Obligations

7.3 Liability for Bids, Offers and Trades

7.4 Contract Record and Official Transaction Record

7.5 Recorded Prices

7.6 Cancelled Trades

7.7 Trading During Certain Securities Transactions

7.8 Restrictions on Trading During a Securities Exchange Take‑over Bid – Repealed

7.9 Trading in Listed or Quoted Securities or Derivatives by a Derivatives Market Maker

7.10 Extended Failed Trades

7.11 Variation and Cancellation and Correction of Trades

7.12 Inability to Rely on Marketplace Functionality

7.13 Direct Electronic Access and Routing Arrangements

7.14 Position limits for listed derivatives

Part 8 - Principal Trading

8.1 Client-Principal Trading

Part 9 - Trading Halts, Delays and Suspensions

9.1 Regulatory Halts, Delays and Suspensions of Trading

Part 10 - Compliance

10.1 Compliance Requirement

10.2 Investigations – Repealed

10.3 Extension of Responsibility – Repealed

10.4 Extension of Restrictions

10.5 Suspension or Restriction of Access

10.6 Exercise of Authority – Repealed

10.7 Assessment of Expenses – Repealed

10.8 Practice and Procedure – Repealed

10.9 Power of Market Integrity Officials

10.10 Report of Short Positions

10.11 Audit Trail Requirements

10.12 Retention of Records and Instructions

10.13 Exchange and Provision of Information by Market Regulators

10.14 Synchronization of Clocks

10.15 Assignment of Identifiers and Symbols

10.16 Gatekeeper Obligations of Directors, Officers and Employees of Participants and Access Persons

10.17 Gatekeeper Obligations with Respect to Electronic Trading

10.18 Gatekeeper Obligations with Respect to Access to Marketplaces

10.19 Reporting limits for listed derivatives

Part 11 - Administration of UMIR

11.1 General Exemptive Relief

11.2 General Prescriptive Power

11.3 Review or Appeal of Market Regulator Decisions

11.4 Method of Giving Notice

11.5 Computation of Time

11.6 Waiver of Notice

11.7 Omissions or Errors in Giving Notice

11.8 Transitional Provisions – Repealed

11.9 Non-Application of UMIR

11.10 Indemnification and Limited Liability of the Market Regulator

11.11 Status of UMIR and Policies

Welcome to CIRO.ca!

You can find the Canadian Investment Regulatory Organization (CIRO) at CIRO.ca with our fresh look and feel.

The following sections of the legacy mfda.ca and iiroc.ca sites have been migrated to ciro.ca:

Enforcement
Hearings
Consultations
A unified member directory (Dealers We Regulate)
Advisor Report

We will continue moving items off MFDA and IIROC in 2024. Stay tuned for future updates.

Visit the Canadian Investment Regulatory Organization website