• Deborah

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.


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