IIROC Proposes To Repeal Restrictions On Short Sale Pricing

The Investment Industry Regulatory Organization of Canada today released proposed amendments to the Universal Market Integrity Rules that would repeal the restrictions on the price at which a short sale may be made on Canadian markets. The proposals would also generally require that Participants and Access Persons make arrangements to borrow the securities necessary to settle any short sale prior to the entry of the order if: (i) the security has been designated as a "Pre-Borrow Security"; (ii) the account on whose behalf the order is being entered has previously executed a failed trade that was not rectified within the required time; or (iii) the Participant has executed as principle a failed trade that was not rectified within the required time.