3802. Definitions

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    1. The following terms have the meaning set out below when used in Rule 3800:

      “book cost”

      In the case of:

      1. a long security position, the total amount paid for the security, including any transaction charges related to the purchase, adjusted for reinvested distributions, returns of capital and corporate actions, or
      2. a short security position, the total amount received for the security, net of any transaction charges related to the sale, adjusted for any distributions (other than dividends), returns of capital and corporate actions.

      “connected issuer”

      The same meaning as ascribed to it in securities laws

      “cost”

      For each security position in the account and each security position subject to the additional reporting obligation under section 3809:

      1. on or after December 31, 2015:
        1. either book cost or original cost, determined as at the end of the applicable period, provided that only one cost calculation methodology, either book cost or original cost, is used for all positions, or
        2. in the case of security positions that are transferred in, either:
          1. the amount determined in  sub-clause (i)(a) of this definition, or
          2. the market value  of the security position as at the date of transfer, provided that the following notification or a notification that is substantially similar identifies each security position where market value has been used is included in the statement or report:
            1. “Market value information has been used to estimate part or all of the [book cost/original cost] of this security position.”
      2. before December 31, 2015:
        1. either book cost or original cost, determined as at the end of the applicable period, provided that only one cost calculation methodology, either book cost or original cost, is used for all positions, or
        2. the market value of the security position as at December 31, 2015 or an earlier date, provided that the following notification or a notification that is substantially similar identifies each security position where market value has been used is included in the statement or report: 
          1. “Market value information as at [December 31, 2015 or earlier date] has been used to estimate part or all of the [book cost/original cost] of this security position.”
      3. where the Dealer Member reasonably believes it cannot determine the cost in accordance with   clause (i) and  sub-clause (ii)(b) of this definition, the Dealer must include the following notification or a notification that is substantially similar: “The [book cost/original cost] of this security position cannot be determined.”

      “market value”

      For securities, precious metals bullion and futures contracts:

      1. that are quoted on an active market, the published price quotation using:
        1. for listed securities, the last bid price of a long security and, correspondingly, the last ask price of a short security, as shown on a consolidated pricing list or exchange quotation sheet as of the close of business on the relevant date or last trading date prior to the relevant date, as the case may be,
        2. for unlisted investment funds, the net asset value provided by the manager of the fund on the relevant date,
        3. for all other unlisted securities (including unlisted debt securities) and precious metals bullion, a value determined as reasonable from published market reports or inter-dealer quotation sheets on the relevant date or last trading day prior to the relevant date, or, in the case of debt securities, based on a reasonable yield rate,
        4. for futures contracts, the settlement price on the relevant date or last trading day prior to the relevant date,
        5. for money market fixed date repurchases (no borrower call feature), the price determined by applying the current yield for the security to the term of maturity from the repurchase date.  This will permit calculation of any profit or loss based on the market conditions at the reporting date,
        6. for money market open repurchases (no borrower call feature), the price determined as of the reporting date or the date the commitment first becomes open, whichever is the later.  The value is to be determined as in   sub-clause (i)(e) of this definition and the commitment price is to be determined in the same manner using the yield stated in the repurchase commitment, and
        7. for money market repurchases with borrower call features, the borrower call price,
        8. and after making any adjustments considered by the Dealer Member to be necessary to accurately reflect the market value,
      2. where a reliable price cannot be determined: 
        1. the value determined by using a valuation technique that includes inputs other than published price quotations that are observable for the security, either directly or indirectly, or
        2. where no observable market data-related inputs are available, the value determined by using unobservable inputs and assumptions, or
        3. where insufficient recent information is available or there is a wide range of possible values and cost represents the best value estimate within that range, cost and the Dealer Member must include the following notification or a notification that is substantially similar:
          1. “There is no active market for this security so we have estimated its market value.”
      3. where a value cannot be reliably determined under clauses (i) and (ii) of this definition, no value shall be reported and the Dealer Member must include the following notification or a notification that is substantially similar:
        1. “Market value not determinable.”

      “operating charge”

      Any amount charged to a client by a Dealer Member in respect of the operation, transfer or termination of a client’s account and includes any taxes paid on that amount.

      “original cost”

      In the case of:

      1. a long security position, the total amount paid for the security, including any transaction charges related to the purchase, or
      2. a short security position, the total amount received for the security, net of any transaction charges related to the sale.

      “outside holdings”

      The client positions for which the Dealer Member is the ‘dealer of record’ that are neither held at or under the control of the Dealer Member.

      “related issuer”

      The same meaning as ascribed to it in securities laws.

      “total percentage return”

      The cumulative realized and unrealized capital gains and losses of an investment, plus income from the investment, over a specified period of time, expressed as a percentage.

      “trailing commission”

      Any payment related to a client’s ownership of a security that is part of a continuing series of payments to a Dealer Member by any party.

      “transaction charge”

      Any amount charged to a client by a Dealer Member in respect of a purchase or sale of a security and includes any taxes paid on that amount.

    There is no history log for this rule.

    There is no history log for this rule.