Part 10 - Compliance

10.18 Gatekeeper Obligations with Respect to Access to Marketplaces

    Rule
    1. A marketplace that has provided access to a Participant or Access Person shall forthwith report to the Market Regulator the fact that the marketplace:
      1. has terminated the access of the Participant or Access Person to the marketplace; or
      2. knows or has reason to believe that the Participant or Access Person has or may have breached a material provision of any Marketplace Rule or agreement pursuant to which the Participant or Access Person was granted access to the marketplace.
    2. A Participant that has provided access to a marketplace pursuant to direct electronic access or through a routing arrangement shall forthwith report to the Market Regulator the fact that the Participant:
      1. has terminated the access of the client under the arrangement for direct electronic access or of the investment dealer or foreign dealer equivalent through a routing arrangement; or
      2. knows or has reason to believe that the client, investment dealer or foreign dealer equivalent has or may have breached a material provision of:
        1. any standard established by the Participant for the granting of direct electronic access or a routing arrangement, or
        2. the written agreement between the Participant and the client regarding the direct electronic access, or the investment dealer or foreign dealer equivalent regarding a routing arrangement.

    Defined Terms:

    NI 31-103 section 1.1 – “investment dealer”

    UMIR section 1.1 – “Access Person”, “direct electronic access”, “foreign dealer equivalent”, “Market Regulator”, “marketplace”, “Marketplace Rule”, “Participant” and “routing arrangement”

    Related Provisions:

    UMIR section 7.13

    Bulletins
    There are no related bulletins available for this Rule.
    Rule History

    Regulatory History:

    On July 4, 2013 the applicable securities commissions approved an amendment, effective March 1, 2014 to add Rule 10.18. See IIROC Notice 13-0184 - “Provisions Respecting Third-Party Electronic Access to Marketplaces” (July 4, 2013).

    Disciplinary History

    There is no history log for this rule.

    Part 1 - Definitions and Interpretation
    1.1 Definitions
    1.2 Interpretation
    1.3 Transitional Provision
    Part 2 - Abusive Trading
    2.1 Specific Unacceptable Activities
    2.2 Manipulative and Deceptive Activities
    2.3 Improper Orders and Trades
    Part 3 - Short Selling
    3.1 Restrictions on Short Selling – Repealed
    3.2 Prohibition on the Entry of Orders
    3.3 Reasonable expectation to settle prior to the entry of an order for a short sale
    3.4 Short Selling after a Reportable Extended Failed Trade
    Part 4 - Frontrunning
    4.1 Frontrunning
    Part 5 - Best Execution Obligation
    5.1 Best Execution of Client Orders – Repealed
    5.2 Best Price Obligation – Repealed
    5.3 Client Priority
    Part 6 - Order Entry and Exposure
    6.1 Entry of Orders to a Marketplace
    6.2 Designation and Identifiers
    6.3 Exposure of Client Orders
    6.4 Trades to be on a Marketplace
    6.5 Minimum Size Requirements of Certain Orders Entered on a Marketplace
    6.6 Provision of Price Improvement by a Dark Order
    Part 7 - Trading in a Marketplace
    7.1 Trading Supervision Obligations
    7.2 Proficiency Obligations
    7.3 Liability for Bids, Offers and Trades
    7.4 Contract Record and Official Transaction Record
    7.5 Recorded Prices
    7.6 Cancelled Trades
    7.7 Trading During Certain Securities Transactions
    7.8 Restrictions on Trading During a Securities Exchange Take‑over Bid – Repealed
    7.9 Trading in Listed or Quoted Securities or Derivatives by a Derivatives Market Maker
    7.10 Extended Failed Trades
    7.11 Variation and Cancellation and Correction of Trades
    7.12 Inability to Rely on Marketplace Functionality
    7.13 Direct Electronic Access and Routing Arrangements
    7.14 Position limits for listed derivatives
    Part 8 - Principal Trading
    8.1 Client-Principal Trading
    Part 9 - Trading Halts, Delays and Suspensions
    9.1 Regulatory Halts, Delays and Suspensions of Trading
    Part 10 - Compliance
    10.1 Compliance Requirement
    10.2 Investigations – Repealed
    10.3 Extension of Responsibility – Repealed
    10.4 Extension of Restrictions
    10.5 Suspension or Restriction of Access
    10.6 Exercise of Authority – Repealed
    10.7 Assessment of Expenses – Repealed
    10.8 Practice and Procedure – Repealed
    10.9 Power of Market Integrity Officials
    10.10 Report of Short Positions
    10.11 Audit Trail Requirements
    10.12 Retention of Records and Instructions
    10.13 Exchange and Provision of Information by Market Regulators
    10.14 Synchronization of Clocks
    10.15 Assignment of Identifiers and Symbols
    10.16 Gatekeeper Obligations of Directors, Officers and Employees of Participants and Access Persons
    10.17 Gatekeeper Obligations with Respect to Electronic Trading
    10.18 Gatekeeper Obligations with Respect to Access to Marketplaces
    10.19 Reporting limits for listed derivatives
    Part 11 - Administration of UMIR
    11.1 General Exemptive Relief
    11.2 General Prescriptive Power
    11.3 Review or Appeal of Market Regulator Decisions
    11.4 Method of Giving Notice
    11.5 Computation of Time
    11.6 Waiver of Notice
    11.7 Omissions or Errors in Giving Notice
    11.8 Transitional Provisions – Repealed
    11.9 Non-Application of UMIR
    11.10 Indemnification and Limited Liability of the Market Regulator
    11.11 Status of UMIR and Policies

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