Securities regulators in Alberta, B.C., Manitoba, Ontario and Quebec have approved several amendments to trading rules.

The amendments to the Universal Market Integrity Rules combine prohibitions and restrictions relating to market stabilization and market balancing activities into a single rule; introduce exemptions from the prohibitions and restrictions relating to market stabilization and market balancing for trading in “highly-liquid” securities and exchange-traded funds; and, harmonize the UMIR provisions governing restrictions and prohibitions on trading activities by brokerage firms with requirements of the OSC governing the trading activities of dealers and parties connected to the issuer.

On February 15, the OSC made a rule regarding trading during distributions, formal bids and share exchange transactions. Unless the minister rejects the OSC rule or returns it for further consideration, it will come into force on May 9. The trading rule amendments will become effective on the date the OSC rule comes into force too. Until that date, the existing provisions continue to apply.

The amendments govern the activities of dealers, issuers and others in connection with a distribution of securities, securities exchange take-over bid, issuer bid or amalgamation, arrangement, capital reorganization or similar transaction. They are intended to prescribe what is an acceptable activity and otherwise restrict trading activities to preclude manipulative conduct by persons with an interest in the outcome of the distribution of securities or other transactions. The amendments impose prohibitions or restrictions on a “dealer-restricted person” trading in certain securities during a “restricted period”.