Short selling is a rather narrow topic, but one that creates
strong and often diametrically opposed opinions. We undertook a
lengthy study of the regulation of short selling in Canada (the
“Short Sale Analysis”), including the
regulations governing short sales in the Universal Market Integrity
Rules (“UMIR”) of the Investment
Industry Regulatory Organization of Canada
(“IIROC”). This bulletin summarizes
our concerns and conclusions with respect to the Canadian short
selling regulatory regime.1
McMillan will hold a conference on the Canadian short selling
landscape on November 19, 2019. More information and
registration for CPD and CLE credit eligibility can be
found here.
The benefits and importance of short selling in providing
liquidity and facilitating price discovery are undeniable. Short
selling is critical to the vibrancy and efficiency of
Canada’s relatively small capital markets. As a result,
Canadian securities regulators and IIROC have historically
