Description of Initial Operations – Bloomberg Tradebook Canada Company

 
Bloomberg Tradebook Canada Company ("Tradebook Canada") will operate an alternative trading system in Ontario, Québec and Nova Scotia (each a "Canadian Jurisdiction" and collectively referred to as the "Canadian Jurisdictions") to provide participants in those Canadian Jurisdictions with access to the multilateral trading facilities operated by its affiliated entities, Bloomberg Trading Facility Limited ("BTFL") and Bloomberg Trading Facility B.V. ("BTF BV"), and the organized market operated by its affiliated entity, Bloomberg Tradebook Singapore Pte Ltd. ("BTSPL") (each a "System" and collectively referred to as the "Systems"), to trade Canadian Debt Securities (as defined below).

Canadian Participants of Tradebook Canada

Tradebook Canada will provide access to Canadian Participants that may include a wide range of sophisticated entities, including commercial and investment banks, corporations, pension funds, money managers, proprietary trading firms, hedge funds and other institutional customers.

Tradebook Canada will provide access to the Systems to participants that (1) are located in a Canadian Jurisdiction, including participants with their headquarters or legal address in a Canadian Jurisdiction (as indicated by a participant's Legal Entity Identifier (LEI)) and all traders conducting transactions on its behalf, regardless of the traders' physical location (inclusive of non-Canadian Jurisdiction branches of Canadian Jurisdiction legal entities), as well as any trader physically located in a Canadian Jurisdiction who conducts transactions on behalf of any other entity ("Canadian Participants"), and (2) qualify as "institutional customers" as defined in Rule 1 of the Investment Industry Regulatory Organization of Canada ("IIROC") Rules.

Securities Traded Through Tradebook Canada

Tradebook Canada will support the trading of Canadian dollar denominated debt securities issued by (1) an issuer incorporated, formed or created under the laws of Canada or a jurisdiction of Canada, or (2) the Government of Canada or the government of a jurisdiction of Canada ("Canadian Debt Securities"), including:

(a) debt securities issued or guaranteed by the Government of Canada or the government of a jurisdiction of Canada (including agencies or instrumentalities thereof);

(b) debt securities issued or guaranteed by a municipal corporation in Canada;

(c) debt securities issued or guaranteed by Canadian corporate or other non-governmental issuers; and

(d) asset-backed securities (including mortgage backed securities) and collateralized mortgage obligations issued or guaranteed by a Canadian issuer, denominated in the Canadian dollar.

Access to the System Operated by BTSPL Through Tradebook Canada

BTFL, BTF BV and BTSPL have obtained or will seek exemptions from the exchange requirement in the Canadian Jurisdictions to provide Canadian Participants with direct access to their respective Systems to trade IRS, CDS, FX and Foreign Debt Securities (as defined below).

"IRS" are interest rate swaps, as defined in section 1a(47) of the U.S. Commodity Exchange Act.

"CDS" are credit default swaps, as defined in section 1a(47) of the U.S. Commodity Exchange Act.

"Foreign Debt Securities" are any debt security (as defined in National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations ("NI 31-103")) that is a foreign security (as defined in NI 31-103) or a debt security that is denominated in a currency other than the Canadian dollar, including:

(a) debt securities issued by the U.S. government (including agencies or instrumentalities thereof);

(b) debt securities issued by a foreign government;

(c) debt securities issued by corporate or other non-governmental issuers (U.S. and foreign); and

(d) asset-backed securities (including mortgage backed securities), denominated in either U.S. or foreign currencies.

"FX"{1} are:

(a) foreign exchange swaps, as defined in section 1a(47) of the U.S. Commodity Exchange Act (but without regard to any exclusions from the definition).

With respect to the System operated by BTSPL only, Tradebook Canada will also provide Canadian Participants located in Ontario ("Ontario Participants") with access to negotiate trades in IRS, CDS and Foreign Debt Securities starting on September 13, 2021 until the date that BTSPL has been granted an exemption order by the Ontario Securities Commission from the exchange recognition requirement in Ontario. Access to negotiate trades in FX (including precious metals swaps, deposits and foreign exchange spot) on the System operated by BTSPL is expected to be available by October 1, 2021.

Bloomberg Compliance will conduct post-trade monitoring of Ontario Participant and their counterparty trading activity for compliance with the applicable registration requirements under Ontario securities laws with respect to IRS, CDS, FX and Foreign Debt Securities.

Access to Tradebook Canada and the Systems

Canadian Participants may access Tradebook Canada and transact using the Systems via an approved service provider (Bloomberg Terminal access is provided this way), via application programming interface ("API"), a non-Bloomberg API or venue Direct Portal, as applicable.

For more information on the functionality of the Systems, please refer to Tradebook Canada's Notice of Initial Operations and Description of Operations published in the May 13, 2021 OSC Bulletin and available on the OSC website www.osc.ca.