IIROC proposes amendments related to the Order Protection Rule

TORONTO, May 15, 2014 /CNW/ - The Investment Industry Organization of Canada (IIROC) today issued for comment proposed amendments to the Universal Market Integrity Rules (UMIR) that align with the Canadian Securities Administrators' (CSA) proposal to revise Part 6 of National Instrument 23-101 that relates to the Order Protection Rule (OPR).

The CSA proposal and IIROC's subsequent proposed amendments follow a review of the OPR framework and seek to address certain costs and inefficiencies related to the current application of OPR.

In the CSA proposal, which provides a detailed overview of the purpose and nature of the proposed amendments, a marketplace would have to meet a market share threshold of five per cent in order for its displayed orders to be considered "protected" under OPR. Exchanges that do not meet the threshold will be protected but only for their listed securities. The marketplaces that qualify as protected under the OPR would be considered protected marketplaces under the proposed UMIR amendments by IIROC.

IIROC Dealer Members continue to have a best execution obligation and will be able to consider whether accessing a transparent marketplace that is not a protected marketplace would be appropriate to achieve best execution for their client orders.

The CSA proposal also addresses concerns related to trading fees and market data fees.

The deadline for comments is September 19, 2014.

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IIROC is the national self-regulatory organization which oversees all investment dealers and trading activity on debt and equity marketplaces in Canada. Created in 2008 through the consolidation of the Investment Dealers Association of Canada and Market Regulation Services Inc., IIROC sets high quality regulatory and investment industry standards, protects investors and strengthens market integrity while maintaining efficient and competitive capital markets.

IIROC carries out its regulatory responsibilities through setting and enforcing rules regarding the proficiency, business and financial conduct of dealer firms and their registered employees and through setting and enforcing market integrity rules regarding trading activity on Canadian equity marketplaces.

SOURCE Investment Industry Regulatory Organization of Canada (IIROC) - General News

For further information: June Yee, Manager, Corporate Communications, 416 943-6921, jyee@iiroc.ca; Karen Archer, Senior Media & Public Affairs Specialist, 416 865-3046, karcher@iiroc.ca