Glossary of Terms

FIX tag 581 in MRF Specifications
Examples of account types:

• Principal order (also known as inventory or proprietary order)
• Non-client order
• Client order
• Bundled order
• Multiple client order

An arrangement between a Participant that is a member, user or subscriber and a client that permits the client to electronically transmit an order relating to a security containing the identifier of the Participant:

1. through the systems of the Participant for automatic onward transmission to a marketplace; or
2. directly to a marketplace without being electronically transmitted through the systems of the Participant.

A client using an order execution only service:

1. whose trading activity on marketplaces for which the Market Regulator is the regulation services provider exceeds a daily average of 500 orders per trading day in any calendar month,
2. that is not an individual and is registered as an adviser in accordance with applicable securities legislation, or
3. that is not an individual and is in the business of trading securities in a foreign jurisdiction in a manner analogous to an adviser.

Notice 19-0071 – Notice of Approval - Amendments Respecting Client Identifiers (April 18, 2019)
and
Notice 19-0101 – Notice of Approval / Implementation - Amendments to Provisions Respecting Order Execution Only Service Eligibility and Adviser Identifiers (June 6, 2019)

See also “order execution only” in IDPC Rule 3241

Means:

1. a recognized exchange or a commodity futures exchange registered in a jurisdiction of Canada;
2. a recognized quotation and trade reporting system; or
3. a person or company not included in clause (a) or (b) above that facilitates the trading of securities or derivatives in a jurisdiction of Canada; and
   1. constitutes, maintains or provides a market or facility for bringing together buyers and sellers of securities or derivatives;
   2. brings together the orders for securities or derivatives of multiple buyers and sellers; and
   3. uses established non-discretionary methods under which the orders interact with each other, and the buyers and sellers entering the orders agree to the terms of a trade.

An “Exchange” means a person recognized by the applicable securities regulatory authority under securities legislation to carry on business as an exchange.

A “QTRS” means a recognized quotation and trade reporting system.

An “ATS” means an alternative trading system,

1. in every jurisdiction other than Ontario, means a marketplace that
   1. is not a recognized quotation and trade reporting system or a recognized exchange, and
   2. does not
      1. require an issuer to enter into an agreement to have its securities traded on the marketplace,
      2. provide, directly, or through one or more subscribers, a guarantee of a two-sided market for a security on a continuous or reasonably continuous basis,
      3. set requirements governing the conduct of subscribers, other than conduct in respect of the trading by those subscribers on the marketplace, and
      4. discipline subscribers other than by exclusion from participation in the marketplace, and
2. in Ontario has the meaning set out in subsection 1(1) of the Securities Act (Ontario).

UMIR 1.1, NI 21‑101 and section 1.1 of CIRO By-law No. 1 (PDF)

List of marketplaces regulated by CIRO

Means an order for the purchase or sale of a security received or originated by a Participant for an account:

1. for a partner, director, officer or a person holding a similar position or acting in a similar capacity of the Participant or of a related entity of the Participant;
2. for an employee of the Participant or of a related entity of the Participant who holds approval from an Exchange or a self-regulatory entity; or
3. which is considered to be an employee account or a non-client account by a self-regulatory entity, but does not include a principal account.

Means:

1. a dealer registered in accordance with securities legislation of any jurisdiction and who is:
   1. a member of an Exchange,
   2. a user of a QTRS, or
   3. a subscriber of an ATS; or
2. a person who has been granted trading access to a marketplace and who performs the functions of a derivatives market maker.

An arrangement under which a Participant that is a member, user or subscriber permits an investment dealer or a foreign dealer equivalent to electronically transmit an order relating to a security containing the identifier of the Participant:

1. through the systems of the Participant for automatic onward transmission to a marketplace; or
2. directly to a marketplace without being electronically transmitted through the systems of the Participant.