The Canadian Investment Regulatory Organization (CIRO) is requesting comment on proposed guidance on requirements related to short selling and failed trades under the Universal Market Integrity Rules (UMIR). The proposed guidance is published concurrently with amendments respecting a reasonable expectation to settle a short sale. The Proposed Guidance provides additional clarity on the short selling regulatory framework in UMIR and helps Participants and Access Persons understand and comply with new and existing requirements.
The proposed guidance clarifies, among other things:
- obligations of Participants and Access Persons before entering an order on a marketplace that upon execution, would result in a short sale
- order marking requirements when entering an order for a short sale
- what constitutes a failed trade
- obligations of Participants and Access Persons after there has been an extended failed trade reportable to CIRO under UMIR 7.10