TS03 Inc Trust Units TSTIF

And, for further clarification...

[echo2]

And, in case anyone is wondering whether a trade (to allow an affiliate of a Canadian broker that has purchased shares of TOS in the Canadian market) to sell short to a US client and not report such a sale on the OTC market would be in violation of IIROC, OSC, FINRA, and SEC rules... For bedtime reading, I have been reading the UMIR on the IIROC site. The Universal Market Integrity Rules to which IIROC and FINRA adher and which it is their role to monitor in the market places include the following: (bolding and underlining of Part 4 are mine)

"6.4 Trades to be on a Marketplace

1. (1)  A Participant acting as principal or agent may not trade nor participate in a trade in a security by means other than the entry of an order on a marketplace.

2. (2)  Subsection (1) does not apply to a trade:

   1. (a)  Unlisted or Non-Quoted Security – in a security which is not a listed security or a quoted security;

   2. (b)  Regulatory Exemption – required or permitted by a Market Regulator to be executed other than on a marketplace in order to maintain a fair or orderly market and provided, in the case of a listed security or quoted security, the Market Regulator requiring or permitting the order to be executed other than on a marketplace shall be the Market Regulator of the Exchange on which the security is listed or of the QTRS on which the security is quoted;

   3. (c)  Error Adjustment – to adjust by a journal entry an error in connection with a client order;

   4. (d)  On a Foreign Organized Regulated Market – executed on a foreign organized regulated market;

   5. (e)  Outside of Canada – executed as principal with a non-Canadian account or as agent if both the purchasers and seller are non-Canadian accounts provided the trade is reported to a marketplace or a foreign organized regulated market in accordance with the reporting requirements of the marketplace or foreign organized regulated market; "
      
      ...etc.
       

      Part 2 – Application to Foreign Affiliates and Others

      The Market Regulator considers that any use by a Participant of another person that is not subject to Rule 6.4 in order to make a trade off of a marketplace (other than as permitted by one of the exemptions) to be a violation of clause (a) of subsection (2) of Rule 2.1 respecting specific unacceptable activities.

      Part 6 – Order Entry and Exposure UMIR 6.4-2

      September 1, 2016

       

      Although certain affiliated entities of a Participant, including their foreign affiliates, are not directly subject to Requirements, Rule 6.4 means that a Participant may not transfer an order to a foreign affiliate, or book a trade through a foreign affiliate, and execute the order in a manner that does not comply with Rule 6.4. In other words, an order directed to a foreign affiliate by the Participant or any other person subject to Rule 6.4 shall be executed on a marketplace unless one of the exemptions set out in Rule 6.4 applies. Foreign branch offices of a Participant are not separate from the Participant and as such are subject to Requirements."
      
      ...etc.
      
      "Part 2 – Application to Foreign Affiliates and Others

      The Market Regulator considers that any use by a Participant of another person that is not subject to Rule 6.4 in order to make a trade off of a marketplace (other than as permitted by one of the exemptions) to be a violation of clause (a) of subsection (2) of Rule 2.1 respecting specific unacceptable activities.

      Part 6 – Order Entry and Exposure UMIR 6.4-2

      September 1, 2016

      Although certain affiliated entities of a Participant, including their foreign affiliates, are not directly subject to Requirements, Rule 6.4 means that a Participant may not transfer an order to a foreign affiliate, or book a trade through a foreign affiliate, and execute the order in a manner that does not comply with Rule 6.4. In other words, an order directed to a foreign affiliate by the Participant or any other person subject to Rule 6.4 shall be executed on a marketplace unless one of the exemptions set out in Rule 6.4 applies. Foreign branch offices of a Participant are not separate from the Participant and as such are subject to Requirements.

      Part 3 – Non-Canadian Accounts

      Clause (e) of Rule 6.4 permits a Participant to trade off of a marketplace either as principal with a non-Canadian account or as agent for the purchaser and seller both of whom are non- Canadian accounts. A "non-Canadian account" is defined as an account of a client of the Participant or a client of an affiliated entity of the Participant held by a Participant or an affiliated entity of a Participant and the client is considered to be a non-resident for the purposes of the Income Tax Act (Canada). There may be certain situations arising where a Participant is uncertain whether a particular account is a "non-Canadian account" for the purpose of this exemption. In these situations the account should be treated as a “Canadian account”. The fact that an individual may be located temporarily outside of Canada, that a foreign location is used to place the order or as the address for settlement or confirmation of the trade does not alter the account's status as a Canadian account. Trades made by or on behalf of bona fide foreign subsidiaries of Canadian institutions are considered to be non-Canadian accounts, if the order is placed by the foreign subsidiary.

      For the purpose of this Policy, the relevant client of the Participant is the person to whom the order is confirmed.

      Part 4 – Reporting Foreign Trades

      Clause (e) of Rule 6.4 requires a Participant to report to a marketplace any trade in a listed security or a quoted security that is made as principal with a non-Canadian account or as agent if both the purchaser and seller are non-Canadian accounts, unless the trade is reported to a foreign organized regulated market. If such an “outside Canada” trade has not been reported to a foreign organized regulated market, a Participant shall report such trade to a marketplace no later than the close of business on the next trading day. The report shall identify the security, volume, price (in the currency of the trade and in Canadian dollars) and time of the trade.

      Part 5 – Application of UMIR to Orders Not Entered on a Marketplace

      Under Rule 6.4, a Participant, when acting as principal or agent, may not trade nor participate in a trade in a security by means other than the entry of an order on a marketplace except in accordance with an exemption specifically enumerated within Rule 6.4. For the purposes of UMIR, a “marketplace” is defined as an Exchange, QTRS or an ATS and a “Participant” is defined essentially as a dealer registered in accordance with securities legislation of any jurisdiction and who is a member of an Exchange, a user of a QTRS or a subscriber to an ATS. If a person is a Participant, certain provisions of UMIR will apply to every order handled by that

      Part 6 – Order Entry and Exposure UMIR 6.4-3

      September 1, 2016

      Participant even if the order is entered or executed on a marketplace that has not adopted UMIR as its market integrity rules or if the order is executed over-the-counter."
      
      ...etc.
      
      ...etc.