The Investment Industry Regulatory Organization of Canada (IIROC) monitors the timely disclosure of required information of publicly traded companies to ensure proper communication to shareholders. Companies may be subject to trading halts, Cease Trade Orders, Suspensions and/or Business halts dependent upon the circumstance.
“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 IIROC or a marketplace upon which the security is listed or quoted…. 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 also creates a level playing field among investors. Halts are issued by IIROC for regulatory reasons or at the request of the involved company.
A Cease Trade Order (CTO) is issued 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 a result of an enforcement action that involves an investigation of wrongdoing. A CTO is often in place for an extended period of time and can be indefinite. CTOs are issued by the Securities Commissions, having jurisdiction over the Issuer.
A Suspension is issued by an exchange in situations when companies fail to meet listing requirements.
A business halt, or an "Exchange halt" is typically a long trading halt implemented by the Exchange due to an ongoing review or business issues such as non-payment of fees. Halts lasting longer than a few hours are usually business halts.”
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