OSC Staff Notice of Request for Comments - Proposed Amendment to the Definition of “Closing Price” - Aequitas NEO Exchange Inc.

Aequitas NEO Exchange Inc. (“NEO Exchange”) is publishing proposed amendments (the “Proposed Amendments”) to the NEO Exchange trading policies (the “Trading Policies”) in accordance with Schedule 5 to its recognition order, as amended (the “Protocol”). They include “Public Interest Rules”, which are being published for comment, and “Housekeeping Rules”, both as defined under the Protocol.

The Public Interest Rules amend the definition of “Closing Price” and add new definitions of “Time-Weighted Average Price NBBO Midpoint” or “TWAP NBBO Midpoint”, “Weighted Closing Price”, and “Weighted Closing Price Eligible Security”. The changes set out how the Closing Price is calculated for NEO-listed securities: 1) with a Closing Call; 2) without a Closing Call that are not Exchange Traded Funds; and 3) without a Closing Call that are Exchange Traded Funds. The changes are being made to address the fact that there may be multiple sources of pricing information and to enable more accurate pricing of illiquid Exchange Traded Funds.

A copy of the NEO Exchange notice is published on our website at www.osc.gov.on.ca.