IIROC Publishes Revised Draft Guidance On Trade Variation And Cancellation

Last week, IIROC released proposed guidance regarding the circumstances in which it may engage in regulatory intervention in order to vary or cancel trades. As we discussed in December 2010, IIROC released an earlier version of the guidance just over a year ago with the intention of providing transparency and certainty with respect to intervention criteria. Ultimately, the proposal, which takes into account comments received in response to the earlier version, would, among other things:

1. restrict intervention when the price difference between an erroneous trade and the current fair value of the security does not exceed the greater of 10% of the price of the security or 10 trading increments;