Natural Gas Exchange Inc. - s. 144 of the Act and s. 78 of the CFA

Headnote

On November 16, 2007 the Commission granted NGX an interim order which expires on May 17, 2008 (First Extension Order). The Commission is amending the First Extension Order by replacing the May 17, 2008 expiry date and substituting an expiry date that is six months from the later of the date that an order recognizing NGX as an exchange and an order recognizing NGX as a clearing agency is granted by the Alberta Securities Commission.

Statutes Cited

Securities Act, R.S.O. 1990, c. S.5, as am., ss. 21, 147.

Commodity Futures Act, R.S.O. 1990, c. C.20, as am., ss. 15, 22, 38, 80.

IN THE MATTER OF

THE SECURITIES ACT, R.S.O. 1990, CHAPTER S.5,

AS AMENDED (OSA)

AND

IN THE MATTER OF

THE COMMODITY FUTURES ACT, R.S.O. 1990, CHAPTER C.20,

AS AMENDED (CFA)

AND

IN THE MATTER OF NATURAL GAS EXCHANGE INC.

ORDER

(Section 144 of the OSA and section 78 of the CFA)

WHEREAS Natural Gas Exchange Inc. (NGX) has filed an application dated April 22, 2008 with the Ontario Securities Commission (Commission) requesting to extend Commission order #2007-1123 dated November 16, 2007 which granted the following interim orders (collectively, the First Extension Order) pending completion of a final order:

(a) an interim order pursuant to section 147 of the OSA exempting NGX from the requirement to be recognized as a stock exchange under section 21 of the OSA;

(b) an interim order pursuant to section 80 of the CFA exempting NGX from the requirement to be registered as a commodity futures exchange under section 15 of the CFA;

(c) an interim order pursuant to section 38 of the CFA exempting trades in Current CFA Contracts (as defined in the First Extension Order) and Ontario Auction Products (as defined in the First Extension Order) on NGX by Current Ontario Participants (as defined in the First Extension Order) from the registration requirement under section 22 of the CFA; and

(d) an interim order pursuant to section 38 of the CFA exempting trades in Ontario Auction Products on NGX by New Ontario Participants (as defined in the First Extension Order) from the registration requirement under section 22 of the CFA;

AND WHEREAS the First Extension Order is due to expire on the earlier of (i) May 17, 2008 and (ii) the date a Final Order (as defined in the First Extension Order) is granted, and a Final Order has not yet been granted by the Commission;

AND WHEREAS NGX has made certain representations and provided certain undertakings in the First Extension Order and NGX has confirmed that all such representations continue to be true and accurate and NGX has confirmed that it will continue to comply with all such undertakings;

AND UPON the Commission being of the opinion that it is not prejudicial to the public interest to vary the First Extension Order:

IT IS HEREBY ORDERED by the Commission that, pursuant to section 144 of the OSA and pursuant to section 78 of the CFA, the First Extension Order be varied as follows:

In clause (b) of the conditions, the reference to "May 17, 2008" is repealed and replaced by "the date that is six months from the later of the date that an order recognizing NGX as an exchange and an order recognizing NGX as a clearing agency is granted by the ASC".

DATED May 13, 2008.

"Margot C. Howard"

"Kevin J. Kelly"