Part 9 - Trading Halts, Delays and Suspensions

9.1 Regulatory Halts, Delays and Suspensions of Trading

Regulatory Halts and Suspensions - No order for the purchase or sale of a security or a derivative shall be executed on a marketplace or over-the-counter, at any time while:
1. an order of a securities regulatory authority to cease trading in the security, derivative, related security or related derivative remains in effect;
2. in the case of a listed security or a listed derivative, the Market Regulator of the Exchange on which the security or derivative is listed has halted or suspended trading in the security or derivative while such halt or suspension remains in effect;
3. in the case of a quoted security, the Market Regulator of the QTRS has halted or suspended trading in the security while such halt or suspension remains in effect; and
4. in the case of any security other than a listed security or a quoted security, a Market Regulator of an ATS on which such security may trade has halted trading for the purposes of the public dissemination of material information respecting such security or the issuer of such security.
Regulatory Delay - No order for the purchase or sale of a security or derivative shall be executed on a marketplace or over-the-counter, at any time while:
1. in the case of a listed security or a listed derivative, the Market Regulator of the Exchange on which the security or derivative is listed has delayed trading in the security or derivative while such delay remains in effect; and
2. in the case of a quoted security, the Market Regulator of the QTRS has delayed trading in the security while such delay remains in effect.
Exceptions for Non-Regulatory Purposes - Despite subsections (1) and (2), an order may be entered on a marketplace or an order may trade on a marketplace, if the Exchange or QTRS has:
1. suspended trading in the security or derivative by reason only that the issuer of the security or underlying security has:
  1. ceased to meeting listing or quotation requirements established by the Exchange or QTRS, or
  2. failed to pay to the Exchange or QTRS any fees in respect of the listing or quotation of securities of the issuer or underlying securities of a derivative; or
2. delayed or halted trading in the security or the derivative as a result of:
  1. technical problems affecting only the trading system of the Exchange or QTRS, or
  2. the application of a Marketplace Rule.
Trading Outside Canada During Regulatory Halts, Delays and Suspensions -
1. If trading in a security has been prohibited on a marketplace in accordance with clauses (1)(b), (c) or (d) or subsection (2), a Participant may execute a trade in the security, if permitted by applicable securities legislation, outside of Canada on a foreign organized regulated market;
2. If trading in a security has been prohibited on a marketplace under clause 1(a), a Participant may execute a sale in the security on a foreign organized regulated market if:
  1. all conditions set forth in the order of a securities regulatory authority are met, and
  2. the sale is in accordance with applicable securities legislation.

Defined Terms:

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

NI 21-101 section 1.1 – “ATS” and “order”

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

UMIR section 1.1 – “derivative”, “Exchange”, ‘foreign organized regulated market”, “listed derivative”, “listed security”, “Market Regulator”, “marketplace”, “Marketplace Rules”, “Participant”, “quoted security”, “QTRS”, “related derivative”, “related security”

UMIR section 1.2(2) – “trade”

Bulletins

Guidance on Market-wide Circuit Breakers

February 21, 2013

Guidance Note

13-0059

Regulatory Halts and Marketplace Hours of Operation

December 8, 2005

Market Integrity Notice

2005-035

Regulation ID Order Markers and Order Inhibition During Regulatory Halts & Suspensions

July 9, 2002

Market Integrity Notice

2002-012

Rule History

Regulatory History:

Effective August 27, 2004, the applicable securities commissions approved an amendment to subsection (1) to delete the phase “entered on a marketplace or” immediately prior to the word “executed”. See Market Integrity Notice 2004‑022 – “Order Entry During a Regulatory Halt” (August 27, 2004).

Effective May 16, 2008, the applicable securities commissions approved an amendment to subsection (4) to replace the phrase “an exchange or organized regulated market outside of Canada that publicly disseminates details of trades executed on that market” with “a foreign organized regulated market”. See Market Integrity Notice 2008‑008 – “Provisions Respecting ‘Off-Marketplace’ Trades” (May 16, 2008).

Effective December 14, 2022, the applicable securities commissions approved amendments to UMIR 9.1. See IIROC Notice 22-0140 – “Amendments Respecting the Trading of Derivatives on a Marketplace” (September 15, 2022).

Effective March 1, 2023, the applicable securities commissions approved amendments to UMIR 9.1(4)(b) to allow Participants to sell a listed security on a foreign organized regulated market during a regulatory halt where a cease trade order is in effect and the selling is permitted pursuant to the conditions in the CTO. See Notice 22-0185 – “Amendments Respecting the Codification of Certain UMIR Exemptions” (December 1, 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