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.