Market Regulation Services Inc. reports that as of July 26, brokers entering orders on the TSX and TSX Venture exchanges will have to flag orders by insiders and others.

Effective July 26, all orders entered on the TSX or TSX Venture Exchange must contain a “Regulation ID Order Marker”.

The marker “IA” notes that the order has been entered for the account of a person who is an insider of the security being traded. The maker “SS” notes that the order has been entered for the account of a person who is a significant shareholder of the issuer.

For the purposes of the order marker, a person will be considered an insider of an issuer based on the definitions in the securities legislation of the jurisdiction in which the person resides, or the legislation governing the marketplace on which the order is entered.

A person will be considered a significant shareholder of an issuer if the person beneficially owns, directly or indirectly, individually or in combination with other persons, more than 20% of the voting securities of the issuer. If a person is both an insider and a significant shareholder, the significant shareholder designation should be used.

RS says brokers may rely on the “know your client” information from the account holder to determine the status of the person, provided the information is current. Similarly, when acting for an institutional client, brokers will not be expected to inquire prior to accepting or executing an order whether the institutional client has become the holder of more than 10% of the securities of a particular issuer.However, if the broker has actual knowledge that a client, including an institutional client, is an insider or significant shareholder of an issuer the broker will be under an obligation to ensure the proper marking of any order by that client in securities of that issuer.

Also effective July 26, all orders entered on TSX Venture Exchange must contain the designation: “IN” if the order is for a principal inventory account; and “OT” if the order is for the account of a derivatives market maker.

An order that has been entered on TSX Venture Exchange as part of cross that is an internal cross should contain the optional tag that identifies the cross as an internal cross.