EXTENSION OF COMMENT PERIOD REGARDING REQUEST FOR COMMENTS AND NOTICE OF FORUM TO DISCUSS "NETS" AND MARKET FRAGMENTATION

On May 16,1997, the Commission published a Request for Comments and Notice of Forum regarding Non-SRO Electronic Trading Systems ("NETS Request for Comments"), (May 16, 1997) 20 O.S.C.B. 2565. In the NETS Request for Comments, the Commission indicated it was seeking information from interested parties (including stock exchanges, Non-Self Regulatory Organization Electronic Trading Systems ("NETS"), brokers, dealers and investors) and was intending to convene a public meeting with a view to developing an appropriate regulatory framework for the operation of NETS, and the role of the Commission in connection therewith.

On May 23, 1997, the United States Securities and Exchange Commission issued a concept release soliciting comment on both its overall approach to the regulation of markets as well as specific options under its current regulatory framework for addressing changes in its markets, particularly the development of alternative trading systems and the development of technology that allows U.S. investors to trade on foreign markets from the United States ("SEC Concept Release"). The SEC Concept Release can be found in the Federal Register, Release No. 34-38672; File No. S7-16-97(File Name: 3438672.txt). Although the circumstances in the U.S. markets and Canadian Markets are not identical, many of the issues raised in the SEC Concept Release are applicable in Canada. Therefore, the Commission believes that the process in Ontario would benefit from a review of the discussion of the issues as set forth in the responses to the SEC Concept Release. As a result, the Ontario Securities Commission has decided to extend the time period for the responses to the NETS Request for Comments from July 15, 1997 until September 15, 1997. This extension will also require that the proposed public meeting date be moved from September to November.

All interested parties should feel free to raise and discuss any issues that arise from the SEC Concept Release which they feel will be useful to the Commission's deliberations on NETS and fragmentation.

All interested parties are invited to provide written submissions to the NETS Request for Comments and requests for appearances by September 15, 1997, which may be sent to:

Mr. Dan Iggers
Secretary
Ontario Securities Commission
20 Queen Street West, Suite 1800
Toronto, Ontario
Canada M5H 3S8

Written submissions will be publicly available unless confidentiality is requested. However, we note that the Commission's ability to maintain confidentiality is subject to the Freedom of Information and Protection of Privacy Act (Ontario).

Questions may be referred to:

Randee B. Pavalow
Policy Coordinator/Advisor 
Ontario Securities Commission 
416) 593-8257
Hugh Cleland
Executive Director's Office
(416) 593 - 8078

Dated: June 13, 1997.