Amendments: NI - 23-101 - Trading Rules and Companion Policy 23-101CP

AMENDMENTS TO NATIONAL INSTRUMENT 23-101 TRADING RULES

PART 1 AMENDMENTS

1.1 Amendments

(1) This Instrument amends National Instrument 23-101 Trading Rules.

(2) Section 2.1 is amended by striking out "the rules, policies and other similar instruments" and substituting "similar requirements".

(3) Part 8 is amended

(a) in paragraph 8.4(c) by adding "in its capacity as a regulation services provider" after "directions made by the regulation services provider"; and

(b) by repealing section 8.5.

(4) Subsection 9.3(2) is repealed.

(5) Section 10.3 is repealed.

(6) Part 11 is amended

(a) in paragraph 11.2(1)(p) by striking out "and";

(b) in paragraph 11.2(1)(q) by striking out "." and substituting "; and";

(c) in subsection 11.2(1) by adding "(r) an insider marker.";

(d) in subsection 11.2(5) by adding "a securities regulatory authority or" before "a regulation services provider";

(e) in subsection 11.2(5) by adding "the securities regulatory authority or" before each reference to "the regulation services provider";

(f) in subsection 11.2(6) by striking out "After December 31, 2003, the" and substituting "The";

(g) in subsection 11.2(6) by adding "a securities regulatory authority or" before "a regulation services provider"; and

(h) in subsection 11.2(6) by adding "by the earlier of January 1, 2007 and the date on which a self-regulatory entity or a regulation services provider implements a rule, policy or other similar instrument to which the dealer or inter-dealer bond broker is subject that requires the maintenance of the record and the transmission of the record in electronic form" at the end.

PART 2 EFFECTIVE DATE

2.1 Effective Date -- This Instrument comes into force on December 31, 2003.

AMENDMENTS TO COMPANION POLICY 23-101CP -- TO NATIONAL INSTRUMENT 23-101 TRADING RULES

PART 1 AMENDMENTS TO COMPANION POLICY 23-101CP TRADING RULES

1.1 Amendments

(1) This Amendment amends Companion Policy 23-101CP.

(2) Section 2.1 is amended

(a) by striking out, in the first sentence, "rules, policies and other similar instruments" and substituting "similar requirements"; and

(b) by striking out, in the second sentence, "rules, policies and other similar instruments" and substituting "requirements".

(3) Section 7.3 is amended by adding the following after the sentence ending with "set by the regulation services provider."

However, section 9.3 of the Instrument provides inter-dealer bond brokers with an exemption from sections 9.1 and 9.2 of the Instrument if the inter-dealer bond broker complies with the requirements of IDA Policy No. 5 Code of Conduct for IDA Member Firms Trading in Domestic Debt Markets, as amended, as if that policy was drafted to apply to the inter-dealer bond broker.

(4) Part 8 is amended

(a) in section 8.2 by striking out "information services provider" in the first sentence and substituting "regulation services provider;

(b) in section 8.2 by adding "the securities regulatory authority or" before each reference to "the regulation services provider" in the first and second sentences; and

(c) by adding the following section:

8.3 Electronic Audit Trail -- Subsection 11.2(6) of the Instrument requires dealers and inter-dealer bond brokers to transmit certain information to a securities regulatory authority or a regulation services provider in electronic form by the earlier of January 1, 2007 and the date on which a self-regulatory entity or a regulation services provider implements a rule requiring the record and the transmission of the record in electronic form. The Canadian securities regulatory authorities and the self-regulatory entities are working with the industry to develop standards for these requirements.

PART 2 EFFECTIVE DATE

2.1 Effective Date -- This Amendment comes into force on December 31, 2003.