• CAN IIAC sent letter to CIRO in anticipation of CIRO's intention to revise Proposed Amendments Respecting the Reasonable Expectation to Settle a Short Sale.

Letter Overview

• Carefully considered the information provided by CIRO and request that the proposed short selling guidance be revised to reflect certain amendments to address CAN IIAC's concerns.
• The existing requirement regarding reasonable expectation to settle short sale is framed as a prohibition whereas the proposed requirement is framed as a positive obligation.
• Since amendment is not intended to create a new requirement, CAN IIAC requests clarity on the language used to state that proposed short selling text does not create new obligation.
• Requests that CIRO clarify that examples of easy-to-borrow lists used in the proposed amendments are not a prerequisite but are instead intended to be an example.
• In regard to CIRO's guidance that participants may consider using technology in use at SEC or EU SSR, CAN IIAC finds it is neither necessary nor helpful to interpretation.
• Note that the technological solutions that have been implemented in other jurisdictions by some IIAC members were developed to meet specific requirements in jurisdiction.
• The costs of implementing the same solutions in Canada would be substantial, especially but not exclusively for firms that do not have affiliates in other jurisdictions.