Canadian Regulator Boosts Short-Selling Surveillance (Update1)

By Sean B. Pasternak

Oct. 6 (Bloomberg) -- The Investment Industry Regulatory Organization of Canada, which monitors the country's stock trading, said it increased surveillance of all short selling after share prices plunged.

Trading will continue to be monitored ``while current market turmoil and uncertainty persist,'' the Toronto-based agency said today in a statement sent by Canada NewsWire. It hasn't noticed any ``significant'' issues from short selling in Canada.

Canadian stocks had their biggest drop in more than 21 years today before paring losses. The Ontario Securities Commission, Canada's main securities regulator, placed a temporary ban on short-selling 13 financial stocks last month, and extended the ban to Oct. 8.

The investment industry regulator also said it's reviewing trading of non-financial companies, and is monitoring the capital position of Canadian dealers.