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SIG North Trading, ULC



  1. Whenever requested, the Executives (i.e. the UDP, CCO and CFO, and other executives as noted by IIROC) of SIG North Trading, ULC will meet with IIROC staff in person at an IIROC office in Canada.

  2. SIG North Trading, ULC will appoint an agent for service of process in all provinces where the firm is registered, and will not change its agent for service of process without giving IIROC 30-days prior written notice of such change by filing a new Submission to Jurisdiction and Appointment of Agent for Service of Process.

  3. SIG North Trading, ULC will ensure that an individual fluent in English or French and knowledgeable in securities and financial matters is available to assist IIROC staff during examinations and investigations during IIROC business hours.

  4. SIG North Trading, ULC will pay all incremental costs associated with enhanced checks required to ensure that the non-resident firm and its Executives continue to meet IIROC’s standard for registration.

  5. SIG North Trading, ULC will pay all costs associated with travel and accommodations of IIROC staff to perform a compliance examination or enforcement investigation outside of Canada.

  6. SIG North Trading, ULC will provide a facility in Quebec to make all of its books and records, including electronic records, readily accessible and produce such books and records, in English or French, for IIROC within a reasonable time if requested, in the manner requested by IIROC.

  7. If SIG North Trading, ULC intends to custody positions for clients, it will enter into an Introducing Broker/Carrying Broker arrangement (Type 1, 2 or 3 only) pursuant to IIROC firm Member Rule 35 [Plain Language Rules 2410, 2415 and 2420] with a resident firm, except in the following instances:

    1. where the non-resident firm only has institutional clients and the firm delivers out the positions to the client’s custodian at the time of trade settlement (i.e. the non-resident firm only temporarily holds positions resulting from a failed client trade), or

    2. where the non-resident firm’s only business is in issuing and/or distributing “electronic assets” i.e. where the custody of the asset is held only as an electronic record typically by the issuer of the product. In such cases, the non-resident firm will:

      1. ensure that the issuer/product manufacturer or custodian of the electronic record is subject to a regulatory regime acceptable to IIROC

      2. keep records of all activity and positions on a server/data centre located in Canada where at least one Executive, who is resident in Canada, has access, and

      3. custody excess cash in a bank account with a Canadian acceptable institution or the Canadian branch of a foreign acceptable institution over which at least one Executive, who is resident in Canada, has ultimate signing authority.

  8. Agreements with clients and third-parties will clearly state that it is to be governed by the laws of Canada and each applicable province for the following arrangements:

    1. opening of accounts

    2. recording and storage of client and firm trading-related books and records

    3. custody of cash, securities and other assets and property, and

    4. direct electronic access offered by SIG North Trading, ULC or routing arrangements that are entered into by SIG North Trading, ULC with a client.

  9. SIG North Trading, ULC will provide to each client a statement in writing disclosing the non-resident status of the firm, its jurisdiction of residence, the name and address of the agent for service of process of the registrant in Quebec, and the nature of risks to clients that legal rights may not be enforceable.

  10. If SIG North Trading, ULC changes its business model or size of operations such that it adversely impacts IIROC’s ability to appropriately regulate SIG North Trading, ULC and/or its registrants, SIG North Trading, ULC must mitigate such risks, to IIROC’s satisfaction, which may involve becoming a resident firm within the time specified by IIROC.