Insider Trading: Trading on material non-public information about a reporting issuer.

Insider Trading

Trading on material non-public information about a reporting issuer.

Definition

Prohibited under each provincial Securities Act and the Criminal Code. An insider includes directors, officers, ≥10% shareholders, and any person in a special relationship with the issuer (including registrants who learn material non-public information through their work). Tipping - passing the information to others - is also prohibited.

Source

Securities Act (Ontario) s.76; Criminal Code s.382.1

Where this shows up on the CIRE

Outcome 6.5

Test yourself

Two real CIRE-bank questions on this exact outcome. Click to reveal the answer and the rule citation.

1
Under UMIR 10.11, when must a Participant record the required order designations, the identifier of the registered representative, and any special terms of an order?
Outcome 6.5 · click for answer
A.Within 30 minutes of receipt, once order routing and processing steps are done
B.At the end of the trading day, when the nightly batch settlement file is finally produced
C.Immediately on receipt or origination, and again when identifiers are added at marketplace entryCorrect
D.Only before the close of the trading session on the day the order was received
UMIR 10.11(1) imposes an immediate recording obligation; audit trail information must be recorded immediately upon receipt or origination of an order, not at end of day or after a processing window. Upon entry of the order on a marketplace, the clearing Participant identifier and marketplace identifier must also be added immediately. The audit trail is a foundational compliance mechanism, and failures to record immediately have attracted significant sanctions because they undermine regulators' ability to reconstruct market activity.
2
Under UMIR 10.10, how often must a Participant calculate aggregate short positions for each security, and what is the filing deadline?
Outcome 6.5 · click for answer
A.Monthly, calculated as of the last business day, filed within five trading days after
B.Twice monthly, as of the 15th and last day of the month, filed within two trading days of each dateCorrect
C.Weekly, as of each Friday's close at 4:00 pm ET, filed with the Market Regulator by the following Monday
D.Quarterly, as of the last trading day of the quarter, filed within 15 calendar days after
UMIR 10.10(1) requires Participants to calculate aggregate short positions for each individual account in each listed and quoted security as of two dates per month: the 15th day and the last day of each calendar month. The report must be filed with the Market Regulator within two trading days following the calculation date. This twice-monthly reporting provides the market with transparency about short interest levels and allows regulators to monitor for potential short-squeeze risks or coordinated short positions.

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