- 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.