Regulatory Alerts2023-11-16
CSA/CIRO Staff Notice 23-332: Summary of Comments and Responses on Short Selling in Canada
The Canadian Securities Administrators and the Canadian Investment Regulatory Organization published this notice to summarize stakeholder feedback received on their previous consultation regarding the regulation of short selling in Canada. Regulators noted a lack of consensus on implementing stricter pre-borrow requirements or enhanced transparency measures, while acknowledging the critical role short selling plays in market liquidity and price discovery. Consequently, no immediate rule changes are proposed, but CIRO plans to publish proposals in early 2024 and a joint working group will be formed to further examine issues such as mandatory buy-ins and the impact of the T+1 settlement cycle.
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