On April 14, the Investment Industry Regulatory Organization of Canada (IIROC) republished for comment its Proposed Derivatives Rule Modernization, Stage 1 (the ‘Proposed Rule’).
Highlights the proposed changes include:
Definition of ‘security’, currently not defined in IIROC Rules
Revision of the definition of ‘derivative’ in accordance with provincial securities, derivatives and commodity futures legislation
Inclusion of derivatives within the “securities related business” definition
Revision to “institutional client” definition
Revision of the business continuity plan requirements
Extension of the current derivatives-specific business conduct requirements to all derivatives transactions, positions and accounts
Revision of the client disclosure and periodic client reporting requirements
The Proposed Rule was first released for comment on November 21, 2019 through Rule Notice 19-2000.
Comments are to be submitted by June 13, 2022.