Following the publication for comments by the Canadian Securities Administrators (CSA) of proposed National Instrument 93-101 – Derivatives: Business Conduct (NI 93-101) and National Instrument 93-102 – Derivatives: Registration (NI 93-102), IIROC performed a complete review of all its Dealer Member related rules (IIROC Rules) to determine:

IIROC is proposing amendments to Dealer Member Rule (DMR) 100.2 and IIROC Rule 5400 that would allow margining of structured products using either a fixed rate or an alternative component margining methodology (Proposed Amendments).

The main purpose of the Proposed Amendments is to formally recognize a margin methodology for structured products as the current DMR and IIROC Rules do not specifically address margin requirements for these products.

The Proposed Amendments would:

IIROC is amending its rules in the core areas of account appropriateness, know-your-client (KYC), suitability, conflicts of interest, and relationship disclosure information (RDI) and introducing new rules in the core areas of product due diligence and know-your-product (KYP) (collectively, the Amendments).