Alert:
A nationwide postal strike or lockout began on November 15, 2024. Dealer Members must take steps to ensure that document delivery requirements prescribed under CIRO Rules continue to be met.
Trading Halts & Timely Disclosure
Timely Disclosure
Disclosure rules require that companies report all material information about their business and financial affairs to the public in a timely and fair manner. These rules aim to ensure that investors are given equal access to material information.
CIRO monitors the timely disclosure of material information by companies trading on marketplaces that have retained CIRO as their regulation service provider. News releases that contain material information are reviewed by CIRO surveillance staff and must be first disseminated using a newswire distribution service before it can be posted to a company’s website or social media. If a news release is unclear, contains insufficient information or is overly promotional, CIRO may ask the company to revise it.
Trading Halts & Resumptions
When surveillance staff believes that the information is material enough to significantly impact the price of the security, they might issue a “trading halt.”
A trading halt is a temporary pause in trading to allow the market to properly absorb the information. It is based on the principle that all investors should have the same timely access to important company information.
The reactivation of trading after a halt is called a “trade resumption.”
If CIRO staff notice erratic price moves in stocks, they will contact the issuer to see if it has information to explain the movement. Staff may ask the company to issue a news release if they believe that material information is leaking into the market or if they believe rumours are affecting the stock price.
View Halts and Resumption Notifications for the latest information.
FAQ
A stock is generally halted pending the release of material news that may affect the price of a stock. A trading halt allows the market to digest this information and creates a level playing field among investors. Halts are issued by CIRO for regulatory reasons or at the request of the involved company. When a company requests a trading halt (usually prior to issuing a news release), the company must assure CIRO that its announcement is imminent. The nature of the announcement and the status of events must also be disclosed to CIRO, so that CIRO can assess the need and timeframe for the trading halt. Halts can also be issued to restore fair and orderly trading.
TSX listed companies are required to submit their material news releases to CIRO for review prior to being disseminated over the news wires, however, issuers are encouraged to submit all news release announcements. Listed companies on the TSX Venture Exchange must have CIRO review their news releases in accordance with TSX Venture Policy 3.3. The CSE Timely Disclosure policy and Part V of the CBOE Listing Manual requires their respective issuers to provide a draft news release to Market Surveillance in advance of issuance, if the news is deemed material. If you are a company representative and have a question about a news release, please contact a CIRO Surveillance Officer.
A trading halt is issued to suspend trading in a security while material news from the company is disseminated. Halts are usually temporary - less than two hours - with trading resuming once the company has issued the important news. Halts and resumptions are issued by CIRO or a marketplace upon which the security is listed or quoted.
A Cease Trade Order (CTO) is issued by the Securities Commissions against a company for a variety of reasons including failing to meet its disclosure requirements such as filing a quarterly or annual financial statement, or as result of enforcement action that involves an investigation of wrongdoing. A CTO is often in place for an extended period and can be indefinite.
Suspensions are implemented by listing exchanges and generally are a precursor to eventual delisting. Reasons for a suspension include failure to maintain listing requirements.
A business halt, also known as an exchange halt, is implemented by a listing exchange, however in most cases it is expected that the stock will resume trading. Reasons for a business halt include a company undergoing a corporate transaction such as a reverse takeover (RTO) or an interruption in trading caused by system issues.
CIRO disseminates notices via newswire distribution services. They can also be accessed on Halts and Resumptions page on CIRO’s website.
No. A halt in trading does not reflect upon the reputation or management of a company nor upon the quality of its securities. In fact, most trading halts are usually made at the request of the listed company involved.
CIRO does not divulge any material news about a company's business or financial affairs. Please contact or visit the website of the company involved for this information.
A trading halt is normally very temporary – typically lasting less than two hours. The length of the trading halt is determined by CIRO, considering the significance of the company's announcement and the time required to disseminate it.