Canada – CSA, IIROC Short Selling Framework

Canada – CSA, IIROC Short Selling Framework

On 8 December 2022, C-IIROC, CSA requested input on short selling framework.

  • CSA and C-IIROC seek input on regulatory framework for short selling in Canada.
  • Issued Staff Notice 23-329 Short selling in Canada to provide overview of the existing regulations, update on current initiatives, request input for regulatory consideration.
  • CSA also issued a summary of comments on CSA Consultation Paper 25-403 Activist short selling, which was originally published in December 2020.
  • Some comments are related to short selling in general and discussed in Nt 23-329.

Overview of Nt 23-329

  • Provided background on short selling and failed trades and related initiatives.
  • Included an overview of existing regulatory requirements relating to short selling.
  • Discussed comments and concerns raised by stakeholders that are relevant to short selling and failed trades and set out specific questions for public feedback.
  • Posed several questions for consultation, including, among others, on transparency and additional reporting, whether pre-borrowing regime should be strengthened.


  • Comments should be submitted in writing on or before 8 March 2023.