What is the effect of a Cease Trade Order (CTO) on market participants subject to Canadian Investment Regulatory Organization (CIRO) regulation?
Presently, all marketplaces (including exchanges, alternative trading systems and quotation and trade reporting systems) in Canada have retained CIRO as their regulation services provider. Under the Universal Market Integrity Rules (UMIR), which have been adopted by CIRO , if a securities regulatory authority issues a CTO with respect to an issuer whose securities are traded on a marketplace, CIRO imposes a regulatory halt on trading of those securities on all marketplaces for which CIRO acts as the regulation services provider. Once the halt is imposed by CIRO , no person subject to the UMIR may trade those securities on any marketplace in Canada, over-the-counter or on a foreign organized regulated market, subject to any conditions set out in the CTO.