The Ontario Securities Commission has approved proposed rule amendments of The Canadian Depository for Securities Ltd.(CDS), allowing it to enforce new U.S. rules regarding short selling.

The proposed amendments require CDS’ participants using the Canada-U.S. cross-border services to comply with the new short selling rule, known as Regulation SHO, in the US.

“Under the rule amendments, CDS will have the authority to close out a fail-to-deliver position of a participant using the cross-border services in certain equity securities trading in the U.S. that are on a U.S. SRO list of securities experiencing substantial and persistent failures to deliver,” it says. “Regulation SHO’s close-out requirements were designed to address problems with failures to deliver in certain equity securities.”

The amendments were published for comment in February, and CDS responded to that comment in March.