On 11 January 204, the Canadian Investment Regulatory Organization (CIRO) issued a proposal to support and clarify the short selling framework under UMIR by:
- adding a new positive requirement in UMIR 3.3 to have prior to order entry, a reasonable expectation to settle on settlement date any order that upon execution would be short selling
- adding supervisory and gatekeeper requirements pertaining to the proposed requirement in UMIR 3.3
- consolidating other current provisions related to short selling to a common location within UMIR (Proposed Amendments).
To provide further clarity and a more complete view of the resulting regulatory framework, CIRO is simultaneously publishing proposed guidance for comment (GN-URPart3-24-0001) that clarifies various current and proposed requirements related to short selling and failed trades (Proposed Guidance).
Comments on Proposed Amendments should be in writing and delivered by 12 April 2024 to:
Theodora Lam
Acting Director, Market Regulation Policy
Canadian Investment Regulatory Organization
Suite 2000
121 King Street West Toronto, Ontario M5H 3T9
e-mail: tlam@ciro.ca
Comments should also be delivered to the Canadian Securities Administrators (CSA):
Market Regulation
Ontario Securities Commission
Suite 1903, Box 55
20 Queen Street West Toronto, Ontario M5H 3S8
e-mail: marketregulation@osc.gov.on.ca
Capital Markets Regulation
B.C. Securities Commission
P.O. Box 10142,
Pacific Centre 701 West Georgia Street, Vancouver, British Columbia, V7Y 1L2
e-mail: CMRdistributionofSROdocuments@bcsc.bc.ca
Commentators should be aware that a copy of their comment letter will be made publicly available on the CIRO website at www.ciro.ca.
