IIROC Failed Trade Study

Type: Administrative Notice> General
Rule connection:
Distribute internally to:
Legal and Compliance
Senior Management
Trading Desk


Jamil Abou Saleh
Vice-President, Analytics


Today IIROC is publishing a report on its failed trade study (“Study”). IIROC initiated the Study to examine settlement failure of trades executed on Canadian equity marketplaces. Market Regulation Inc. (RS)1 originally published a study of failed trades in 2007 that was based on a sample of failed trades provided to us by a group of dealers. Since that time, IIROC has dramatically improved our ability to conduct large-scale data analysis. We felt it time to refresh our review to ensure our understanding is current and that our regulatory and compliance framework remains effective.

Our goal was to provide high-level observations and update our understanding of this important topic. In this report we discuss:

  • Prevalence of settlement failure
  • How long transactions take to settle
  • Relationship between settlement failure and short selling and short positions
  • Outliers

The full report is available here.

  • 1RS was a predecessor organization to IIROC

MFDA and IIROC have consolidated

As of January 1, 2023 the MFDA and IIROC have come together as New Self-Regulatory Organization of Canada (New SRO).

New SRO has assumed the regulatory responsibilities of the MFDA and IIROC.

We have set up an interim website for updates and information related to the New SRO including:

  • Executive Management
  • Governance
  • New SRO Rules
  • Member Application
  • Investor Office and the Investor Advisory Panel
  • Information concerning mutual fund dealers registered in Québec
  • Complaints
  • Careers

Enforcement proceedings, membership lists, continuing education, investor education resources and any other information not set out above continue to reside on www.mfda.ca and www.iiroc.ca.