Relevant to ECU, as long as ECU is co-listed in the U.S. (ECUXF) the Canadian specific regulation doesn't apply. See excerpt from yesterday's jsmineset. De-listing in the U.S would considerably boost the share price and eliminate the U.S. naked shorting.

Please note that naked short sales are not permitted in Canada. The Investment Industry Regulatory Organization of Canada (“IIROC”), UMIR Policy 2.2 Part 2 (h) provides that it is manipulative and deceptive to “enter an order for the sale of a security without, at the time of entering the order, having the reasonable expectation of settling any trade that would result from the execution of the order”. In addition, National Instrument 24-101 Part 7 states that “A registered dealer shall not execute a trade unless the dealer has established, maintains and enforces policies and procedures designed to facilitate settlement of the trade on a date that is no later than the standard settlement date for the type of security traded prescribed by an SRO or the marketplace on which the trade would be executed”.

Canada has a rule prohibiting the execution of a short sale on a downtick, except on inter-listed securities (UMIR 3.1). All securities inter-listed on US markets were exempted from the tick rule as the result of the US revocation of their tick rule on June 13, 2007.

IIROC monitors trading and settlement to detect violations of, investigate and enforce the above rules. (but never any sanctions that are a deterrent).