RS Market Integrity Notice - Notice of Amendment Approval - Provisions Respecting Competitive Marketplaces

MARKET REGULATION SERVICES INC.

AMENDMENT TO THE

UNIVERSAL MARKET INTEGRITY RULES

PROVISIONS RESPECTING

COMPETITIVE MARKETPLACES

NOTICE OF COMMISSION APPROVAL

The Ontario Securities Commission has approved amendments to the following Universal Market Integrity Rules and Policies:

(a) Rule 1.1, with respect to the definitions of:

(i) "Best Bid Price" and "Best Ask Price";

(ii) "Consolidated Market Display";

(iii) "Closing Price Order";

(iv) "Internal Cross" and "Intentional Cross";

(v) "Market-on-Close Order";

(vi) "Last Sale Price";

(vii) "Opening Order"; and

(viii) "Special Terms Order";

(b) Clause (2)(f) of Rule 3.1 - Restriction on Short Selling;

(c) Clause (2)(c) of Rule 5.2 -- Best Price Obligation;

(d) Rule 5.3 - Client Priority;

(e) Subsection (1) of Rule 6.1 -- Entry of Orders to a Marketplace;

(f) Clause (1)(b) of Rule 6.2 -- Designations and Identifiers;

(g) Subsection (1) of Rule 6.3 -- Exposure of Client Orders;

(h) Clause (1)(h) of Rule 6.3 -- Exposure of Client Orders;

(i) Subsection (2) of Rule 8.1 -- Client-Principal Trading;

(j) Subsection (1) of Rule 10.9 -- Power of Market Integrity Officials;

(k) Part 1, clause (d) of Policy 2.1 -- Examples of Unacceptable Activity;

(l) Policy 5.1 -- Best Execution of Client Orders;

(m) Part 1 of Policy 5.2 -- Best Price Obligation, Qualification of Obligation;

(n) Part 2 of Policy 5.3 -- Prohibition on Intentional Trading Ahead;

(o) Part 3 of Policy 5.3 -- No Knowledge of Client Order; and

(p) Part 6 by adding Policy 6.1 -- Exceptions for Certain Types of Orders

The other applicable securities regulatory authorities have also approved the amendments. A copy and description of the original amendments were published on October 6, 2006 at (2006) 29 OSCB 7991. Twenty 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.