Proposed Amendments Respecting the Codification of Certain UMIR Exemptions

IIROC is publishing for comment proposed amendments (Proposed Amendments) to the Universal Market Integrity Rules (UMIR) that would codify new exemptions to allow Participants to trade a listed security:

• off-marketplace during a statutory resale restriction where the trading is permitted pursuant to a prospectus exemption
• on a foreign organized regulated market (FORM) during a regulatory halt where a cease trade order (CTO) is in effect and the trading is permitted pursuant to meeting specified conditions set out in the CTO.

Impacts         

If implemented, IIROC expects the most significant impacts of the Proposed Amendments on Participants would be:

• a material savings in the time and effort currently spent in preparing and submitting these exemption requests
•  the need to review and update their supervision and compliance policies to:
• remove any procedures to seek individual exemptions from IIROC on a per transaction basis where the trading complies with the new codified exemptions
• add reasonable procedures to manage and monitor compliance with applicable securities legislation and regulatory requirements when trading during a statutory resale restriction or regulatory halt.

If approved, the Proposed Amendments would be effective at least 90 days after the publication of the Notice of Approval.