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Glossary of Terms



Implementation of Amendments Respecting Client Identifiers
Glossary of Terms for Decision Tree and Scenario Chart

Term Meaning Source
Account type

FIX tag 581 in MRF Specifications
Examples of account types:

  • Principal order (also known as inventory or proprietary order)
  • Non-client order
  • Client order
  • Bundled order
  • Multiple client order

 

UMIR 1.1 and FIX MRF Specifications
Bundled order (BU)

An order that includes a client order as well as a non-client order or principal order, or both.

UMIR 1.1

Client order

An order for the purchase or sale of a security received or originated by a Participant for the account of a client of the Participant or a client of an affiliated entity of the Participant, but does not include a principal order or a non-client order.

UMIR 1.1

Dealer Member Rules (DMR) or Plain Language Rule Book (PLR) or IIROC Rules

Dealer Member Rules are rules made pursuant to IIROC’s by-laws.
The Plain Language Rule Book refers to the plain language rewrite of the Dealer Member Rules.
PLR will be known as IIROC Rules after implementation.

DMR
IIROC Notice 18-0014 – RFC – Re-publication of Proposed IIROC Dealer Member Plain Language Rule Book (January 18, 2018).

Direct electronic access (DEA)

An arrangement between a Participant that is a member, user or subscriber and a client that permits the client to electronically transmit an order relating to a security containing the identifier of the Participant:
(a) through the systems of the Participant for automatic onward transmission to a marketplace; or
(b) directly to a marketplace without being electronically transmitted through the systems of the Participant.

UMIR 1.1

Foreign dealer equivalent (FDE)

A person in the business of trading securities in a foreign jurisdiction in a manner analogous to an investment dealer and that is subject to the regulatory jurisdiction of a signatory to the International Organization of Securities Commissions’ Multilateral Memorandum of Understanding in that foreign jurisdiction.

UMIR 1.1

Global Legal Entity Identifier System

The system for unique identification of parties to financial transactions developed by the Legal Entity Identifier System Regulatory Oversight Committee.

IIROC Notice 19-0071 – Notice of Approval - Amendments Respecting Client Identifiers (April 18, 2019)

Identified order execution only client

A client using an order execution only service:
(a) whose trading activity on marketplaces for which the Market Regulator is the regulation services provider exceeds a daily average of 500 orders per trading day in any calendar month,
(b) that is not an individual and is registered as an adviser in accordance with applicable securities legislation, or
(c) that is not an individual and is in the business of trading securities in a foreign jurisdiction in a manner analogous to an adviser.

IIROC Notice 19-0071 – Notice of Approval - Amendments Respecting Client Identifiers (April 18, 2019)
and
IIROC Notice 19-0101 – Notice of Approval / Implementation - Amendments to Provisions Respecting Order Execution Only Service Eligibility and Adviser Identifiers (June 6, 2019)
See also “order execution only” in DMR 3200

IIROC Dealer Member

A Member that is an investment dealer in accordance with securities legislation.
“Member” means a person admitted to membership in the Corporation and who has not ceased, resigned or terminated membership in the Corporation in accordance with the provisions of Article 3.

IIROC By-Law No. 1
List of IIROC Dealer Members

IIROC Dealer Member that is not a Participant

An IIROC Dealer Member that is not a member of an Exchange or a subscriber of an ATS.

See also “IIROC Dealer Member” and “Participant”

Jitney order

An order entered on a marketplace by a Participant acting for or on behalf of another Participant.

UMIR 1.1

Jitney Participant

A Participant that sends a jitney order for execution on a marketplace by another Participant.

See definition of “jitney order” in UMIR 1.1

Legal Entity Identifier (LEI)

A unique identification code assigned to a person in accordance with standards set by the Global Legal Entity Identifier System.

IIROC Notice 19-0071 – Notice of Approval - Amendments Respecting Client Identifiers (April 18, 2019)

Listed security

A security listed on an Exchange.
An “Exchange” means a person recognized by the applicable securities regulatory authority under securities legislation to carry on business as an exchange.

UMIR 1.1

Marketplace

Means:
(a) an Exchange;
(b) a QTRS; and
(c) an ATS.

An “Exchange” means a person recognized by the applicable securities regulatory authority under securities legislation to carry on business as an exchange.
A “QTRS” means a recognized quotation and trade reporting system. An “ATS” means an alternative trading system,
(a) in every jurisdiction other than Ontario, means a marketplace that
(i) is not a recognized quotation and trade reporting system or a recognized exchange, and
(ii) does not

(A) require an issuer to enter into an agreement to have its securities traded on the marketplace,
(B) provide, directly, or through one or more subscribers, a guarantee of a two-sided market for a security on a continuous or reasonably continuous basis,
(C) set requirements governing the conduct of subscribers, other than conduct in respect of the trading by those subscribers on the marketplace, and
(D) discipline subscribers other than by exclusion from participation in the marketplace, and

(b) in Ontario has the meaning set out in subsection 1(1) of the Securities Act (Ontario).

 

UMIR 1.1 and NI 21-101

List of marketplaces regulated by IIROC

Multiple client order (MC)

An order that includes orders from more than one client, but does not include a principal order or a non-client order.

IIROC Notice 19-0071 – Notice of Approval - Amendments Respecting Client Identifiers (April 18, 2019)

Non-client order (NC)

Means an order for the purchase or sale of a security received or originated by a Participant for an account:
(a) for a partner, director, officer or a person holding a similar position or acting in a similar capacity of the Participant or of a related entity of the Participant;
(b) for an employee of the Participant or of a related entity of the Participant who holds approval from an Exchange or a self-regulatory entity; or
(c) which is considered to be an employee account or a non-client account by a self-regulatory entity, but does not include a principal account.

UMIR 1.1

Order execution only (OEO) service

The acceptance and execution of orders from customers for trades that the Dealer Member has not recommended and for which the Dealer Member takes no responsibility as to the appropriateness or suitability of orders accepted or account positions held.

Dealer Member Rule 3200

Participant (PO)

Means:
(a) a dealer registered in accordance with securities legislation of any jurisdiction and who is:

(i) a member of an Exchange,
(ii) a user of a QTRS, or
(iii) a subscriber of an ATS; or
(b) a person who has been granted trading access to a marketplace and who performs the functions of a derivatives market maker.

 

UMIR 1.1

Proprietary order or account

An account or order in which the dealer (who may be a foreign dealer equivalent or IIROC Dealer Member) holds a direct or indirect interest other than an interest in the commission charged on a transaction.
May also be known as an inventory order or account.
Where the dealer is a Participant, the proprietary account means a principal account as defined in UMIR 1.1.

See UMIR 1.1 definitions of a “principal account” and “principal order”.

Routing Arrangement (RA)

An arrangement under which a Participant that is a member, user or subscriber permits an investment dealer or a foreign dealer equivalent to electronically transmit an order relating to a security containing the identifier of the Participant:

(a) through the systems of the Participant for automatic onward transmission to a marketplace; or

(b) directly to a marketplace without being electronically transmitted through the systems of the Participant.

 

UMIR 1.1

Supervised as a retail client

Client that is supervised by the IIROC Dealer Member according to the standards set under Dealer Member Rule 2500.

DMR 2500

Supervised as an institutional client

Client that is supervised by the IIROC Dealer Member according to the standards set under Dealer Member Rule 2700.

DMR 2700

Unique identifier for clients of a foreign dealer equivalent that automatically generates an order on a predetermined basis

Alphanumeric code that is unique to the client of the FDE. Does not need to be in the form of an LEI, account number, or client name.

IIROC Notice 19-0071 – Notice of Approval - Amendments Respecting Client Identifiers (April 18, 2019)

Universal Market Integrity Rules (UMIR)

Means those Rules adopted by IIROC and designated by IIROC as the Universal Market Integrity Rules as amended, supplemented and in effect from time to time.

UMIR 1.1