Securities Law & Instruments

Headnote

Extension to the order temporarily exemptingthe Bourse de Montréal from recognition as a stock exchangepursuant to section 21 of the Securities Act (Ontario) and registrationas a commodity futures exchange pursuant to section 15 of theCommodity Futures Act (Ontario) and order granting an exemptionfrom Part 4 of OSC Rule 91-502 until October 14, 2003.

Provisions Cited

Securities Act, R.S.O. 1990, c. S.5, as amended,section 21, 147.

Commodity Futures Act, R.S.O 1990, Chapter 20,as amended, sections 15, 80.

OSC Rule 91-502 Trades in Recognized Options,Part 4 and section 6.1.

IN THE MATTER OF

THE SECURITIES ACT, R.S.O.1990

CHAPTER S.5, AS AMENDED (theAct)

AND

IN THE MATTER OF

THE COMMODITY FUTURES ACT

R.S.O 1990, CHAPTER 20, ASAMENDED

(the CFA)

AND

IN THE MATTER OF

OSC RULE 91-502 TRADES INRECOGNIZED OPTIONS (Rule 91-502)

AND

IN THE MATTER OF

BOURSE DE MONTRÉALINC.

 

ORDER

(Section 147 of the Act, section80 of the CFA and section 6.1 of Rule 91-502)

WHEREAS the Bourse de MontréalInc., previously known as the Montreal Exchange and the MontréalExchange Inc. (collectively referred to as the Bourse), hasfiled an application pursuant to section 147 of the Act andsection 80 of the CFA for an order exempting the Bourse fromthe requirement to be recognized as a stock exchange under section21 of the Act and registered as a commodity futures exchangeunder section 15 of the CFA;

AND WHEREAS the Bourse has filed an applicationfor an order by the Director pursuant to section 6.1 of OSCRule 91-502 that the Bourse is exempt from Part 4 of Rule 91-502of the Commission;

AND WHEREAS the Bourse represented thatthe Bourse carries on business as a stock exchange and a derivativesexchange in Québec and is recognized under the SecuritiesAct (Québec) as a self-regulatory organization;

AND WHEREAS the Bourse represented thatthe contracts traded or to be traded on the Bourse are approvedby the Commission des valeurs mobilières du Québec(the CVMQ) and are filed with the Commission;

AND WHEREAS the Bourse is exempt fromsection 25 and section 53 of the Act pursuant to Ontario SecuritiesCommission Rule 91-503 Trades of Commodity Futures Contractsand Commodity Futures Options Entered into on Commodity FuturesExchanges Situate Outside of Ontario;

AND WHEREAS an Order was granted by theCommission dated October 3, 2000 (the October 2000 Order) exemptingthe Bourse on an interim basis from the requirement to be recognizedas a stock exchange under section 21 of the Act and registeredas a commodity futures exchange under section 15 of the CFA;

AND WHEREAS Orders were granted by theCommission extending the October 2000 Order exempting the Bourseon an interim basis from the requirement to be recognized asa stock exchange under section 21 of the Act and registeredas a commodity futures exchange under section 15 of the CFAuntil July 8, 2003;

AND WHEREAS the Commission is satisfiedthat granting the Bourse an extension of the October 2000 Orderpursuant to section 147 of the Act and section 80 of the CFAon an interim basis would not be contrary to the public interest;

AND WHEREAS the Director is satisfiedthat an exemption from Part 4 of Rule 91-502 would not be contraryto the public interest;

IT IS ORDERED by the Commission pursuantto section 147 of the Act and section 80 of the CFA, that theBourse be exempt from the requirement to be recognized as astock exchange under section 21 of the Act and registered asa commodity futures exchange under section 15 of the CFA; and

IT IS FURTHER ORDERED by the Directorpursuant to section 6.1 of Rule 91-502 that the Bourse is exemptfrom Part 4 of Rule 91-502;

PROVIDED THAT the Bourse continues tobe recognized as a self-regulatory organization under the SecuritiesAct (Québec) and that the exemptions pursuant to section147 of the Act, section 80 of the CFA and section 6.1 of Rule91-502 shall terminate at the earlier of:

(i) the date that the Bourse is granted anorder by the Commission recognizing it as a stock exchangeand registering it as a commodity futures exchange or exemptingit from the requirement to be recognized as a stock exchangeand registered as a commodity futures exchange; and

(ii) October 14, 2003.

July 8, 2003.

"Randee B. Pavalow"
"Robin W. Korthals"
"H. Lorne Morphy"