With the emerging threat of orders for Canadian securities being routed to the U.S., IIROC today republished for comment a proposed anti-avoidance provision to foster debate about the best approach to maintaining healthy and competitive Canadian markets.
Currently, an exception to the Order Exposure Rule allows small client orders to be withheld from a lit marketplace if such orders receive meaningful price improvement. Meaningful price improvement refers to the amount of price improvement that is provided to an order that receives a better price than the National Best Bid or Offer.
Under the UMIR, “better price” is defined as price improvement of at least one trading increment (for example, one penny for securities priced $0.50 or more) or at least a half-increment when the difference between the best ask price and the best bid price is a single trading increment.
Advisor.ca – January 29, 2015.
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