NoticeNov 10, 2003
Notice 2003-008 - Replaced by Notice 2003-010
November 10, 2003
REQUEST FOR COMMENTS � REGISTRATION REQUIREMENTS FOR CNQ DEALERS AND APPROVED TRADERS
The Board of Directors of Canadian Trading and Quotation System Inc. (�CNQ�) has approved amendments to the CNQ Rules removing the requirement that CNQ Dealers and Approved Traders be Ontario registrants. The proposed amendments are attached to this notice as Appendix �A.�
The Board has determined that the proposed amendments are in the public interest and have authorized them to be published for public notice and comments. Comments should be made no later than 30 days from the date of publication of this notice and should be addressed to:
Canadian Trading and Quotation System Inc.
BCE Place, 161 Bay Street
Suite 3850, P.O. Box 207
Toronto ON
M5J 2S1
Attention: Timothy S. Baikie, General Counsel & Corporate Secretary
Fax: 416.572.4160
E-mail: [email protected]
A copy should be provided to the Ontario Securities Commission at the following address:
Capital Markets Branch
Ontario Securities Commission
Suite 800, Box 55
20 Queen Street West
Toronto ON
M5H 3S8
Attention: Cindy Petlock, Manager, Market Regulation
Fax: 416.593.8240
E-mail: [email protected]
CNQ rules currently require both CNQ Dealers and Approved Traders to be Ontario registrants as a condition of approval. This has become a barrier to access as some out-of-province traders are reluctant to seek Ontario registration where it would not otherwise be required.
The Board has determined that the burden these requirements impose is disproportionate to the benefit to be obtained. As applicable securities legislation sets out registration requirements based on activities conducted by the firm or the trader within the jurisdiction, it is not necessary for CNQ to set additional requirements.
If the amendments are approved, firms and traders will continue to have the responsibility for ensuring they have all necessary registrations, including Ontario registrations if applicable, for the business they are undertaking.
The amendments also clarify that, in applicable cases, appeals of CNQ decisions may be brought to other commissions in addition to the Ontario Securities Commission.
Rules of Other Jurisdictions
Neither the TSX nor the TSX Venture Exchanges have specific registration requirements for Approved Traders or Participating Organizations.
Alternatives Considered
No alternatives were considered.
APPENDIX �A�
Be it resolved that:
1. Rule 1-105(2) is repealed and replaced with the following:
�A Decision of the CNQ Board may be appealed pursuant to the provisions of applicable securities legislation.�
2. Rule 2-101(a) is amended by deleting the words �an Ontario registrant and�.
3. Rule 4-101(1) is amended by deleting the words �is an Ontario registrant and�.
4. Rule 4-101(2) is repealed and replaced with the following:
�A CNQ Dealer shall ensure that each person entering orders on the CNQ System has all necessary registrations under applicable securities legislation and is trained in and understands these rules.�
5. Section 5.3 of Policy 1 is repealed and replaced with the following:
�A Decision of the CNQ Board may be appealed pursuant to the provisions of applicable securities legislation.�
Passed and enacted this 5th day of November, 2003 to become effective upon Ontario Securities Commission approval following public notice and comment.
"Ian Bandeen"
Chairman
"Timothy Baikie"
Secretary
REQUEST FOR COMMENTS � REGISTRATION REQUIREMENTS FOR CNQ DEALERS AND APPROVED TRADERS
The Board of Directors of Canadian Trading and Quotation System Inc. (�CNQ�) has approved amendments to the CNQ Rules removing the requirement that CNQ Dealers and Approved Traders be Ontario registrants. The proposed amendments are attached to this notice as Appendix �A.�
The Board has determined that the proposed amendments are in the public interest and have authorized them to be published for public notice and comments. Comments should be made no later than 30 days from the date of publication of this notice and should be addressed to:
Canadian Trading and Quotation System Inc.
BCE Place, 161 Bay Street
Suite 3850, P.O. Box 207
Toronto ON
M5J 2S1
Attention: Timothy S. Baikie, General Counsel & Corporate Secretary
Fax: 416.572.4160
E-mail: [email protected]
A copy should be provided to the Ontario Securities Commission at the following address:
Capital Markets Branch
Ontario Securities Commission
Suite 800, Box 55
20 Queen Street West
Toronto ON
M5H 3S8
Attention: Cindy Petlock, Manager, Market Regulation
Fax: 416.593.8240
E-mail: [email protected]
CNQ rules currently require both CNQ Dealers and Approved Traders to be Ontario registrants as a condition of approval. This has become a barrier to access as some out-of-province traders are reluctant to seek Ontario registration where it would not otherwise be required.
The Board has determined that the burden these requirements impose is disproportionate to the benefit to be obtained. As applicable securities legislation sets out registration requirements based on activities conducted by the firm or the trader within the jurisdiction, it is not necessary for CNQ to set additional requirements.
If the amendments are approved, firms and traders will continue to have the responsibility for ensuring they have all necessary registrations, including Ontario registrations if applicable, for the business they are undertaking.
The amendments also clarify that, in applicable cases, appeals of CNQ decisions may be brought to other commissions in addition to the Ontario Securities Commission.
Rules of Other Jurisdictions
Neither the TSX nor the TSX Venture Exchanges have specific registration requirements for Approved Traders or Participating Organizations.
Alternatives Considered
No alternatives were considered.
APPENDIX �A�
Be it resolved that:
1. Rule 1-105(2) is repealed and replaced with the following:
�A Decision of the CNQ Board may be appealed pursuant to the provisions of applicable securities legislation.�
2. Rule 2-101(a) is amended by deleting the words �an Ontario registrant and�.
3. Rule 4-101(1) is amended by deleting the words �is an Ontario registrant and�.
4. Rule 4-101(2) is repealed and replaced with the following:
�A CNQ Dealer shall ensure that each person entering orders on the CNQ System has all necessary registrations under applicable securities legislation and is trained in and understands these rules.�
5. Section 5.3 of Policy 1 is repealed and replaced with the following:
�A Decision of the CNQ Board may be appealed pursuant to the provisions of applicable securities legislation.�
Passed and enacted this 5th day of November, 2003 to become effective upon Ontario Securities Commission approval following public notice and comment.
"Ian Bandeen"
Chairman
"Timothy Baikie"
Secretary
