The Bourse de Montréal Inc.’s (MX) regulatory unit issued revised guidance on Friday that aims to provide clarity on what constitutes illegal wash trading.
In a notice, the Bourse set out the latest regulatory guidance on when self-matching orders are considered wash trading, which is prohibited as manipulative or deceptive trading.
In particular, the revised guidance indicated that self-matched transactions that occur due to the limitations of the anti-wash functionality on the Bourse would not be considered illegal wash trading.
“Unless there is evidence of intent, recklessness or willful blindness, a self-match of implied orders will not be deemed to be wash trading,” it said.
The exchange originally published guidance on the issue last year.