Notice – Housekeeping Rule Amendment to the Trading Policies – Cboe Canada Inc.
Introduction
In accordance with the Process for the Review and Approval of Rules and the Information Contained in Form 21-101F1 and the Exhibits Thereto, Cboe Canada Inc. ("Cboe Canada" or the "Exchange") has adopted certain amendments to its trading rules (the "Trading Policies") that are of a housekeeping nature (collectively, the "Housekeeping Rule Amendment"). The Ontario Securities Commission has not disagreed with the housekeeping categorization. The Housekeeping Rule Amendment comprises the amendments described below.
Housekeeping Rule Amendment and Rationale for Classification
The Housekeeping Rule Amendment comprises the following:
• The correction of a clerical error to reflect the actual (ongoing) practice of limiting the number of Trader IDs available for each Odd Lot Liquidity Provider ("OLLP") sending orders to the MATCHNow Odd Lot Facility (consistent with the description of this limitation in section 6.1 of the MATCHNow In Detail Specification, available at https://cdn.cboe.com/resources/membership/MN_In_Detail_Specification-EN.pdf), along with an increase in the applicable limit from 15 Trader IDs to 25 Trader IDs; and
• Various typographical and other non-substantive corrections, as described further in the table below.
The Housekeeping Rule Amendment does not have a significant impact on the Exchange, its market structure, members, issuers, investors or the Canadian capital markets, and it is consistent with the types of changes described in subsection 6.1(5) of Companion Policy 21-101CP to National Instrument 21-101 Marketplace Operation.
Additional details are provided in the table below.
| Trading Policies Section | Amendment | Rationale | ||
|---|---|---|---|---|
| 1. | Part I. Definitions and Interpretations | "Liquidity Taking Order" means an active Limit or Market FOK/IOC order entered in any of the Trading Books (including a "Market Flow Order" on the MATCHNow Trading Book, sometimes referred to as an "Immediate or Cancel" or "IOC" order, as further described in the In Detail Specification | To reflect the fact that the MATCHNow In Detail Specification has remained a stand-alone Cboe Canada document. | |
| 1.01 Definitions | ||||
| 2. | Part I. Definitions and Interpretations | "UMIR" means the Universal Market Integrity Rules adopted by CIRO as amended, supplemented, and in effect from time to time. | To make a grammatical (punctuation) change for clarity. | |
| 1.01 Definitions | ||||
| 3. | Part IX. Trading in MATCHNow | Commentary | To reflect the fact that the MATCHNow In Detail Specification has remained a stand-alone Cboe Canada document. | |
| 9.02 Commentary | For additional defined terms and other functionality information unique to the MATCHNow Trade Book, please see the In Detail Specification | |||
| 4. | Part IX. Trading in MATCHNow | (1) | In MATCHNow, orders from all accounts may interact with each other, unless otherwise specified in the In Detail Specification | To reflect the fact that the MATCHNow In Detail Specification has remained a stand-alone Cboe Canada document. |
| 9.04(1) | ||||
| 5. | Part IX. Trading in MATCHNow | (d) | Each | To correct a clerical error (i.e., an incorrect suggestion that no limit applies to the number of Trader IDs for each OLLP) and increase the applicable limit on the number of Trader IDs per OLLP from 15 to 25 |
| 9.07(4)(d) | ||||
| 6. | Part IX. Trading in MATCHNow | 9.08 | To simplify the title of Section 9.08 and make a consequential adjustment to the wording of Section 9.08(1) | |
| 9.08 Cboe BIDS Canada 9.08(1) | (1) | Conditionals may be originated by a Member or a Sponsored User through Cboe BIDS Canada. | ||
| 7. | Part IX. Trading in MATCHNow | Replace the erroneous term "Subscriber" with the correct term "Member" throughout the respective Commentary for the aforementioned Sections. | To make typographical corrections | |
| 9.08(1) Commentary | ||||
| 9.08(2) Commentary | ||||
| 9.08(5) Commentary | ||||
| 8. | Part IX. Trading in MATCHNow | Commentary | To reflect the fact that the MATCHNow In Detail Specification has remained a stand-alone Cboe Canada document. | |
| 9.08(6) Commentary | For up-to-date details on how each Sponsored User feature works, please see the In Detail Specification | |||
| 9. | Part XI. General Provisions Regarding Market Making | (4) | Any reassignment will be made in accordance with the Exchange procedures set out under this Section | To correct the numbering of the cross-reference |
| 11.07(4) | ||||
| 10. | Part XIII. Clearing and Settlement | 13.01 Clearing and Settlement | To correct the numbering of each cross-reference | |
| [...] | ||||
| 13.01(5) | (5) | Members shall obtain agreement from their clients that the client will provide instructions with respect to the receipt or delivery of the securities to the settlement agent promptly upon receipt by the client of the confirmation referred to in Section | ||
| 13.03(2) | ||||
| 13.03(3) | ||||
| 13.05(2) | ||||
| 13.05(3) | ||||
| 13.03 Settlement of the Exchange Trades of Listed Securities | ||||
| [...] | ||||
| (2) | Notwithstanding Section | |||
| (3) | Notwithstanding Section | |||
| 13.05 Failed Trades in Rights, Warrants, and Instalment Receipts | ||||
| [...] | ||||
| (2) | Where a demand has been made in accordance with Section | |||
| (3) | Where a demand has not been made in accordance with Section | |||
| 11. | Various Parts | Correct the use and capitalization of the word "Section" throughout the Trading Policies and make other minor typographical and/or grammatical corrections. | To improve internal consistency | |
| 1.02(3) | ||||
| 2.02(2) | ||||
| 3.07(1) | ||||
| 4.01(3) and (5) | ||||
| 4.02 Commentary | ||||
| 5.09(1) | ||||
| 7.07(6) | ||||
| 7.08(1) | ||||
| 9.07(5) | ||||
| 11.04(3) Commentary | ||||
| 15.01(2) | ||||
| 16.01(4) | ||||
The Trading Policies can be viewed at: https://www.cboe.ca/en/resources
The Housekeeping Rule Amendment is effective as of the date hereof.