Securities Law & Instruments

Headnote

Application under section 144 of the Securities Act (Ontario) (Act) to vary the interim order of LCH.Clearnet Limited (LCH) to extend its interim exemption which exempts LCH under section 147 of the Act on an interim basis from recognition as a clearing agency under subsection 21.2(0.1) of the Act.

Applicable Legislative Provisions

Securities Act, R.S.O. 1990, c. S.5, as am., ss. 21.2(0.1), 147, 144.


IN THE MATTER OF
THE SECURITIES ACT,
R.S.O. 1990, CHAPTER S. 5, AS AMENDED
(THE ACT)

AND

IN THE MATTER OF
LCH.CLEARNET LIMITED
(LCH)

VARIATION TO THE RESTATED INTERIM ORDER
(Section 144 of the Act)



    WHEREAS the Ontario Securities Commission (Commission) issued an interim order dated March 1, 2011 pursuant to section 147 of the Act exempting LCH from the requirement to be recognized as a clearing agency under subsection 21.2(0.1) of the Act (Initial Order);

    AND WHEREAS the Commission issued an order dated May 17, 2011 varying and restating the Initial Order to clarify that LCH may provide additional clearing services, including LCH Enclear OTC service to Ontario-resident clients (Interim Order);

    AND WHEREAS the Commission issued an order dated August 19, 2011 varying and restating the Interim Order to extend the expiry of the Interim Order (Restated Interim Order) and issued an order dated August 28, 2012 varying the Restated Interim Order to extend the expiry of the Restated Interim Order;

    AND WHEREAS the Commission issued an order dated February 12, 2013 varying and restating the Restated Interim Order to extend the expiry of the Restated Interim Order (February 2013 Restated Interim Order);

    AND WHEREAS the February 2013 Restated Interim Order will terminate on the earlier of (i) June 1, 2013, and (ii) the effective date of a subsequent order with respect to the requirement to be recognized as a clearing agency under subsection 21.2(0.1) of the Act (Subsequent Order);

    AND WHEREAS LCH has filed an application with the Commission pursuant to section 144 of the Act to vary the February 2013 Restated Interim Order to allow Commission staff to complete their review of LCH and for the Commission to issue the Subsequent Order (Application);

    AND WHEREAS the Commission has received certain representations from LCH in connection with the Application;

    AND WHEREAS the Commission has determined that it is not prejudicial to the public interest to vary the February 2013 Restated Interim Order to extend LCH’s interim exemption from the requirement to be recognized as a clearing agency under subsection 21.2(0.1) of the Act;

    IT IS ORDERED, pursuant to section 144 of the Act, that the February 2013 Restated Interim Order be varied by replacing the reference to “June 1, 2013” with a reference to “October 1, 2013.”

    DATED this 24th day of May, 2013

“Edward P. Kerwin”

“Deborah Leckman”