PART A.1 – FIXED INCOME TRANSACTIONS

4804. Fixed income trading units

Or jump to a Series:

    1. Section 4804 applies to all transactions between Dealer Members regardless of the Districts the Dealer Members are in. 

    2. In section 4804 “trading units” is defined as follows:

      1. Government of Canada

        1. $250,000 par value for Government of Canada direct obligations and Government of Canada guaranteed obligations having an unexpired term of less than one year to maturity (or to the earliest call date, where the transaction is completed at a premium),

        2. $100,000 par value for Government of Canada direct obligations and Government of Canada guaranteed obligations having an unexpired term of one year or longer but three years or less to maturity (or to the earliest call date, where the transaction is completed at a premium),

        3. $100,000 par value for Government of Canada direct obligations and Government of Canada guaranteed obligations having an unexpired term to maturity of longer than three years (where the bond is traded at a premium, the earliest call date shall be treated as the maturity date).

      2. Province of Canada

        1. $25,000 par value for bonds, debentures and other obligations of or guaranteed by a province in Canada.

      3. Other Bonds and Debentures

        1. $25,000 par value for bonds and non-convertible debentures (other than Government of Canada direct obligations and Government of Canada guaranteed obligations and bonds, debentures and other obligations of or guaranteed by a province in Canada) that were not issued with attached stock warrants, rights or other attachments,

        2. $5,000 par value for bonds, convertible debentures or debentures (other than Government of Canada direct obligations and Government of Canada guaranteed obligations and bonds, debentures and other obligations of or guaranteed by a province in Canada) that were issued with attached stock warrants, rights or other attachments.

    3. A Dealer Member calling a market must trade trading units if called upon to trade, unless prefixed by some qualifying phrase. Any amount less than one trading unit will be considered as an “odd lot”.

    4. Any Dealer Member asking the size of a stated market must be prepared to buy or sell at least a trading unit at the price quoted if immediately requested to do so by the Dealer Member calling the market.

    5. Any Dealer Member who has been requested to call a market has the option to trade an odd lot at the called market (if so requested) or to adjust his market to compensate for the smaller amount involved.

    There is no history log for this rule.

    There is no history log for this rule.