IIROC Expands Implementation Of Single-Stock Circuit Breakers

IIROC published guidance yesterday that will expand its implementation of single-stock circuit breakers.

As we discussed in February 2012, under IIROC's current guidance on single-stock circuit breakers, securities that are part of the S&P/TSX Composite Index, as well as ETFs comprised principally of listed securities, will be halted for trading where there has been a price increase or decline of at least 10% in a five minute period. The circuit breaker initially halts the particular security for five minutes, and this time may be extended for a further five minute period if a significant imbalance of buy and sell orders remain. The circuit breaker only applies between 9:50 a.m. and 3:30 p.m.