For Immediate Release

December 8, 2022

CSA and IIROC seek input on regulatory framework for short selling in Canada

Toronto - The Canadian Securities Administrators (CSA) and the Investment Industry Regulatory Organization of Canada (IIROC) are seeking input from investors, industry and the public on the current regulatory framework surrounding short selling in Canada.

In a staff notice published today, the CSA and IIROC:

·      offer an overview of the existing regulatory landscape for short selling, including rules governing failure to settle trades,

·      provide an update on current related initiatives, and

·      request public feedback on areas for regulatory consideration.

The staff notice also describes recent international developments and highlights the results of a study completed by IIROC on failed trades .

The CSA and IIROC welcome feedback on the staff notice, which includes several consultation questions. Comments should be submitted in writing on or before March 8, 2023.

The CSA is also publishing today a summary of comments and responses to CSA Staff Consultation Paper 25-403 Activist Short Selling. This consultation paper was published on December 3, 2020 to facilitate the discussion about concerns relating to activist short selling and its potential impact on capital markets.

The CSA, the council of the securities regulators of Canada’s provinces and territories, co-ordinates and harmonizes regulation for the Canadian capital markets. IIROC is the pan-Canadian self-regulatory organization that oversees all investment dealers and their trading activity in Canada's debt and equity markets. IIROC sets high quality regulatory and investment industry standards, protects investors and strengthens market integrity while supporting healthy Canadian capital markets. IIROC carries out its regulatory responsibilities through setting and enforcing rules regarding the proficiency, business and financial conduct of 174 Canadian investment dealer firms of varying sizes and business models, and their more than 32,000 registered employees. IIROC also sets and enforces market integrity rules regarding trading activity on Canadian debt and equity marketplaces. For more information, visit

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For media inquiries, please contact:


Ilana Kelemen

Canadian Securities Administrators

JP Vecsi
Ontario Securities Commission

Sean Hamilton




For investor inquiries, please contact your local securities regulator.