If a company files a disclosure document late—or not at all—or we find that a document contains a significant deficiency, we will place the company on our default list. Depending on the nature of the default, we may issue a “management cease trade order” or an “issuer cease trade order”. In a management cease trade order, the company’s senior management and insiders must stop trading in the company’s securities until the default is corrected. This can happen when the company doesn’t file its financial statements on time but expects to do so quickly, the default is not expected to occur again and there are no other compliance issues. .
