On 21 November 2019, C-TMX proposed amendments to position limit rules.
- Revise methodology in setting position limits for products and its approach to applying.
- Amendments tackle violations like market abuse, manipulation and deceptive trading.
- Introduce provisions that apply to new products or the revitalization of existing ones.
- Centralize the position limits of all products in Article 6.309A (previously 6.309) for options and share futures contracts, and new Article 6.309B for futures contracts.
- Deletes text in old Article 6.309(a) covering position limits for approved participants.
Additions to Limits
- Article 6.309A (a) position limits where underlying security is an equity holding ETF.
- Add Article 6.309A (b) which defines an inter-listed trading volume of transactions.
- 6.309A(c) defines narrow-and broad-based ETF, and narrow and broad based index.
- 6.309A(d) hedged options, reverse conversions, box spreads, back to back options.
- Add Article 6.309B(i) which states position limits for cash settled interest rate returns.
- Article 6.309B(ii) states position limit rules for government of canada bond futures.
- 6.309(ii) which states that there are no position limits for broad-based index futures.
- Add Article 6.309B(iv) which states position limit rules for narrow-based index futures.
- Modify Articles 6.310 to 6.319 as well as to Appendix 6D Policy C-1.
- Comments on the proposed amendments are due by 21 January 2020.