Securities loan (with set-off)

This agreement is between a Dealer Member and another entity (including another Dealer Member) in which one party is the lender of securities and the other is the borrower of the securities and it requires that the borrower pledge collateral (money, securities or both) to the lender. In this agreement there is a set-off provision allowing each party to set-off and apply the amount owed by the other against any of its obligations to the other party. Because of the set-off provision, the securities loaned and the securities pledged as collateral are required under section 5840 of the IIROC Rules, cash and securities loan agreements, to be free and clear of any trading restrictions and signed for transfer. 

Section 5840 requires a Dealer Member to execute a written securities loan agreement for cash and securities loan transactions to avoid margin penalties in Form 1.

Securities loan (with set-off) - Attachment (pdf)

Welcome to!

We have a new look! You can find the Canadian Investment Regulatory Organization (CIRO) at with our fresh look and feel.

You can now find new publications published by CIRO since January 1, 2023 on If you are looking for past notices or bulletins published by MFDA or IIROC, you can find those on our legacy websites. Enforcement related content will continue on those websites as well.

You can now find previous Annual Reports and Enforcement Reports on, along with Halts and Resumption, and our ePublications sign up (for all previous MFDA and IIROC subscriber lists).

We will continue moving items off MFDA and IIROC in 2023/2024. Stay tuned for future updates.