5461. Foreign exchange currency group criteria and monitoring

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    1. Criteria - The qualitative and quantitative criteria for initial qualification within each currency group are as follows:

      1. A Group 1 currency must:

        1. have a spot price volatility level of less than or equal to 1.00%, and

        2. be a primary intervention currency of the Canadian dollar.

      2. A Group 2 currency must:

        1. have a spot price volatility level of less than or equal to 3.00%,

        2. have a daily quoted spot rate by a Schedule 1 chartered bank, and

        3. have either:

          1. a daily quoted spot rate by either:

            1. a member of the Economic and Monetary Union, or

            2. a participant in the Exchange Rate Mechanism II,

          2. or

          3. a listed currency futures contract on an applicable exchange.

      3. A Group 3 currency must:

        1. have a spot price volatility level of less than or equal to 10.00%,

        2. have a daily quoted spot rate by a Schedule 1 chartered bank, and

        3. be of a member country of the International Monetary Fund with Article VIII status, and no capital payment restrictions as they relate to security transactions.

      4. A Group 4 currency has no initial or ongoing qualification criteria.

    2. Monitoring currency adherence to group qualitative criteria -

      On at least an annual basis, IIROC shall assess the adherence of each currency in a group to the qualitative criteria of the particular currency group to determine whether the currency continues to satisfy the qualitative criteria of the currency group.

    3. Currency group upgrades and downgrades - Where IIROC determines that a particular currency:

      1. should be upgraded, because it now satisfies the criteria set out in subsection 5461(1) for a currency group other than its current currency group, or

      2. should be downgraded, because it no longer satisfies its current currency group criteria as set out in subsection 5461(1),

      3. IIROC shall recommend for approval its proposed upgrade or downgrade to the IIROC Financial and Operations Advisory Section. Upon IIROC Financial and Operations Advisory Section approval, IIROC shall notify Dealer Members of the upgrade or downgrade.

    There is no history log for this rule.

    There is no history log for this rule.