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.

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