Notice of Commission Approval - Amendment to Universal Market Integrity Rule - Amendment to Rule 1.1 and 3.1(2)

MARKET REGULATION SERVICES INC.

AMENDMENT TO THE UNIVERSAL MARKET INTEGRITY RULES

AMENDMENTS TO RULES 1.1 AND 3.1(2) -- PROVISIONS

RESPECTING SHORT SALES

NOTICE OF COMMISSION APPROVAL

The Ontario Securities Commission has approved amendments to Rule 1.1 (amendment to the definition of "short sale" and definition of "Exchange-traded Fund") and Rule 3.1(2) of the Universal Market Integrity Rules (UMIR) to provide that a person will be considered to be "short" a security in certain circumstances and to provide an exemption from the pricing restrictions for trades in Exchange-traded Funds. In addition, the Alberta Securities Commission, the British Columbia Securities Commission, the Manitoba Securities Commission and the Autorité des marchés financiers have also approved the amendments. A copy and description of the amendment was published on April 23, 2004 at (2004), 27 OSCB 4272. Six comment letters were received. The final version of the amendments and a summary of the comments received are published in Chapter 13 of this Bulletin.