In order to make informed trading decisions, investors must have access to current information about companies, including their financial statements. That's why when a company fails to file certain documents, or during the course of enforcement proceedings, the ASC can order that all trading in company shares cease. This means no trades can occur while the order is in effect.
In accordance with Section 33.1 of the Securities Act when the ASC finds that a company has not filed its annual audited financial statements, interim financial statements or other continuous disclosure documents, the ASC can issue a final CTO, which remains in effect until the company files the required documentation and makes application to have the order revoked.
To find out if a company has been subject to a cease trade order by the ASC, you can search the Enforcement Order database.
A central database for cease trade orders (CTOs) by Canadian regulators is available on the CSA website. Access the CTO database.