THE INVESTMENT INDUSTRY REGULATORY
ORGANIZATION OF CANADA (IIROC)
AMENDMENTS TO RULE 100.4E
OFFSETS BETWEEN STRIP COUPON POSITIONS
AND/OR RESIDUAL DEBT POSITIONS
NOTICE OF COMMISSION APPROVAL
The Ontario Securities Commission approved amendments to IIROC Rule 100.4E regarding offsets between strip coupon positions and/or residual debt positions (the Amendments). In addition, the British Columbia Securities Commission did not object, and the Alberta Securities Commission, the Autorité des marchés financiers, the New Brunswick Securities Commission, the Nova Scotia Securities Commission and the Department of Government Services of NewFoundland and Labrador approved the Amendments. The purpose of the Amendments is to align the margin and capital requirements for each offset with its respective risk by allowing offsets between strip coupon positions, offsets between residual debt positions, and offsets between strip coupon and residual debt positions.
A copy and description of the Amendments were published on January 4, 2008, at (2008) 31 OSCB 349. No comments were received. The Amendments were later revised to include the addition of the term "or a customer" immediately following the words "Where a Dealer Member" under paragraphs (e) and (f) of Rule 100.4E. This addition was intended to be part of the Investment Dealers Association of Canada (IDA) amendments extending debt offsets to customer positions (Regulations 100.4A, 100.4B, 100.4C, 100.4D, 100.4E and 100.4K), that were approved by the Commission in November 2006, but was missing in the version of the amendments that was published for comments at the time (in OSC Bulletin (2006) 29 OSCB 8203).
A copy of the final version of the Amendments is contained in Chapter 13 of this OSC Bulletin.