Housekeeping amendments to the provisions respecting Trading Supervision Obligations 

18-0118
Type: Rules Notice> Approval/Implementation
Rule connection:
UMIR
7.1 Trading Supervision Obligations
Distribute internally to:
Institutional
Legal and Compliance
Senior Management
Trading Desk
Retail

Contact:

Sanka Kasturiarachchi
Policy Counsel, Market Regulation Policy
Telephone:
Email:

Executive Summary

On May 24, 2018 IIROC’s Board of Directors (Board) approved housekeeping amendments to the following parts of UMIR Policy 7.1:

  • Part 3 – Supervision and Compliance Procedures for Trading on a Marketplace
  • Part 4 – Specific Procedures Respecting Client Priority and Best Execution

These housekeeping amendments (Collectively, the Amendments):

  • change the best execution rule references in Parts 3 and 4 from Rule 5.1 to Dealer Member Rule (DMR) 3300
  • delete the portions related to best execution in Part 4 that are now covered in DMR 3300

The Amendments are effective immediately.

  1. Discussion of Amendments

  1. Analysis

Amendments to UMIR Policy 7.1, Parts 3 and 4 were finalized1 in September 2017 but do not reflect changes made under previous UMIR amendments respecting best execution2  (Best Execution Amendments). These housekeeping changes update rule references and delete portions of Policy 7.1 that are now covered in DMR 3300.

Set out below is a brief description of the Amendments:

UMIR Reference Nature of Amendment

Policy 7.1 – Part 3 – Supervision and Compliance Procedures for Trading on a Marketplace

Rule reference correction

Policy 7.1 – Part 4 – Specific Procedures Respecting Client Priority and Best Execution

Typographical and Rule reference correction

Classification of the Amendments

We have classified the Amendments as “housekeeping” because they:

  • do not represent a material change to IIROC rules
  • have no material impact on investors, issuers, Participants or the capital markets in Canada as they:
    • correct inaccurate cross-referencing and typographical mistakes
    • make necessary changes of an editoral nature.
  1. Impacts of the Amendments

We do not expect these Amendments to impact any stakeholders or IIROC.  

Technological implications

We do not expect these amendments to impact a Participant’s systems, or the systems of its service providers.

  1. Policy Development Process

Regulatory purpose

The Amendments maintain rules that are necessary or appropriate to govern and regulate all aspects of IIROC’s functions and responsibilities as a self-regulatory entity.

In deciding on the Amendments, IIROC identified a need to ensure UMIR is up-to-date by correcting inaccurate cross-referencing and typographical mistakes. 

The Amendments are housekeeping in nature and not detrimental to the best interests of the capital markets. As a result, the Board has classified the Amendments as a “Housekeeping Rule” that is not contrary to the public interest.

  1. Attachments

Attachment A – Housekeeping amendments to UMIR Policy 7.1 

Attachment B – Text of UMIR to reflect housekeeping amendments to UMIR Policy 7.1 

  • 1IIROC Notice 17-0189 – Rules Notice – Amendments Respecting Trading Supervision Obligations (September 28,2017)
  • 2IIROC Notice 17-0137 – Rules Notice – Amendments Respecting Best Execution (July 6,2017)