Universal Market Integrity Rules (UMIR)
Candlefocus EditorUMIR provides a comprehensive set of rules to guide the operations of all IIROC member firms. IIROC members must comply with these rules so that the public and their customers are given a fair and transparent investment services experience.
The rules of UMIR set out a set of standards for trading, pre-trade reporting, clearance, settlement, margin requirements, post-trade reporting, capital standards, and dispute resolution. They also determine the role of marketplaces and the proper conduct of transactions, as well as regulations of brokers and dealers, marketplaces, and authorized participants. In addition, these rules also require IIROC members to keep their clients informed of any potential risks or changes in regulations or market practices.
The UMIR consist of 21 sets of rules and over 4,500 pages of regulations that must be followed by all IIROC members. These include such things as the trading rules, pre-trade regulations, margin requirements, post-trade information reporting, marketplaces, and dispute resolution. The rules provide guidance on how to conduct a trade, provide fair and transparent practices for investors and other market participants, and works to protect investors from securities fraud and any need for dispute resolutions.
UMIR is regularly reviewed and amended as needed to ensure that it remains up to date in light of technological developments, changes in the structure of the capital markets and other relevant changes. The rules are reviewed and changed at least annually.
By adopting the principles outlined in the UMIR, IIROC has taken significant steps to eliminate misconduct and maintain a fair, orderly, and transparent marketplace. This is important to ensure that all investors in the Canadian market are given a fair and equal opportunity to make wise investment decisions. With the rigorously maintained rules set by the provisions of the UMIR, investors can be confident that the capital market remains fair and transparent and that the rules continue to be followed.