The Canadian Securities Administrators (CSA) and the Investment Industry Regulatory Organization of Canada (IIROC and, together with the CSA, we) are publishing Joint Canadian Securities Administrators and Investment Industry Regulatory Organization of Canada Staff Notice 23-329 Short Selling in Canada (Notice) to provide an overview of the existing regulatory landscape surrounding short selling, give an update on current related initiatives and request public feedback on areas for regulatory consideration.

We believe that it is important and timely to review our regulatory framework to ensure it is current and appropriate given the way markets continue to evolve. This Notice reflects our commitment to do so, especially in light of public feedback we received with respect to short selling and international developments, described later in the Notice.

The CSA are also publishing today a summary of comments and responses to the CSA Consultation Paper 25-403 Activist Short Selling (Activist Short Selling Consultation Paper).1 The Activist Short Selling Consultation Paper was published on December 3, 2020. Its purpose was to facilitate the discussion of concerns relating to activist short selling and its potential impact on capital markets. Some of the comments received in response to the Activist Short Selling Consultation Paper addressed topics broader than activist short selling activities and related to short selling and short selling regulation in general. Similar issues have also been raised by other stakeholders. These comments are summarized in the summary and responses to the Activist Short Selling Consultation Paper and published today in CSA Staff Notice 25-306 Activist Short Selling Update (Staff Notice 25-306). We discuss the broader comments related to short selling in this Notice.

• 1At CSA Consultation Paper 25-403 – Activist Short Selling.