Order Protection Rule
The Order Protection Rule requires marketplaces to establish, maintain and ensure compliance with written policies and procedures reasonably designed to prevent inferior-priced orders from “trading through”, or executing before, immediately accessible, visible, better-priced limit orders.
On November 13, 2009, the CSA introduced the Order Protection Rule through amendments to National Instrument 21-101 Marketplace Operation and related Companion Policy 21-101CP, and National Instrument 23-101 Trading Rules and related Companion Policy 23-101CP. The Order Protection Rule took effect on February 1, 2011.
On May 15, 2014, the CSA published for comment proposed amendments to National Instrument 23-101 and related Companion Policy 23-101CP following a review of the Order Protection Rule framework. The Comment period ends on September 19, 2014.For more information:
- CSA Staff Notice 23-321 Order Protection Rule: Market Share Threshold for the period April 1, 2018 to March 31, 2019
- CSA Staff Notice 23-317 Order Protection Rule: Market Share Threshold for the period April 1, 2017 to March 31, 2018
- CSA Notice and Request for Comment: Proposed Amendments to NI 23-101 Regarding Order Protection Rule Review
- CSA Discussion Paper 23-403 - Market Structure Developments and Trade-Through Obligations
- Joint Canadian Securities Administrators/Market Regulation Services Inc. Notice on Trade-Through Protection, Best Execution and Access to Marketplaces
- Notice of Proposed Amendments to NI 21-101 Marketplace Operation and NI 23-101 Trading Rules (2008)
- Canadian Securities Administrators Notice of Amendments to National Instrument 21-101 Marketplace Operation and National Instrument 23-101 Trading Rules (2009)
- Canadian Securities Administrators Notice of Technical Corrections to Amendments to National Instrument 23-101 Trading Rules (2009)
- CSA Staff Notice 23-307 - Order Protection Rule - Implementation Milestones