Perimeter Markets Inc. – s. 8.1 of OSC Rule 13-502 Fees

Order

Section 8.1 of OSC Rule 13-502 Fees – Exemption granted from the requirement in Appendix C (item O(1)) to pay fees related to an application for exemption from the requirement in section 12.2 of National Instrument 21-101 Marketplace Operation to engage a qualified party to conduct an independent systems review and prepare a report

Applicable Legislative Provisions

OSC Rule 13-502 Fees, s. 8.1 and Item O(1) of Appendix C.

IN THE MATTER OF
THE SECURITIES LEGISLATION OF
THE PROVINCE OF ONTARIO

AND

IN THE MATTER OF
PERIMETER MARKETS INC.
(the Applicant)

ORDER
(Section 8.1 of
Ontario Securities Commission
Rule 13-502 Fees)

UPON the application by the Applicant (the Fee Exemption Application) to the Director for an order pursuant to section 8.1 of Ontario Securities Commission Rule 13-502 Fees (OSC Rule 13-502) exempting the Applicant from the requirement to pay an activity fee of $4,800 in connection with an application for an order pursuant to section 15.1 of National Instrument 21-101 Marketplace Operation (NI 21-101) exempting the Applicant from the requirement in section 12.2 of NI 21-101 that the Applicant annually engage a qualified party to conduct an independent systems review (ISR) and prepare a report in accordance with established audit standards for each year from 2018 through 2020, inclusive (the ISR Application);

AND UPON considering the Fee Exemption Application and the recommendation of staff of the Commission;

AND UPON the Applicant having represented to the Director as follows:

1.             Perimeter Markets Inc. (Perimeter) is a corporation established under the laws of the Province of Ontario and its principal business is to operate an alternative trading system (ATS) as that term is defined in s. 1.1 of NI 21-101;

2.             The head office of Perimeter is located in Toronto, Ontario;

3.             Perimeter is a member of the Investment Industry Regulatory Organization of Canada and the Canadian Investor Protection Fund and is registered in all provinces as a dealer in the category of investment dealer, as a derivative dealer in Québec, and as a futures commission merchant in Ontario and Manitoba;

4.             Perimeter operates an ATS exclusively for trading over-the-counter fixed income securities;

5.             Perimeter is a small marketplace and the $4,800 fee associated with the ISR Application will be unduly burdensome and will put a significant strain on Perimeter’s ongoing development;

6.             Perimeter’s ATS is unique in Canada and Perimeter’s business model supports the goals of both the regulators and the general public through its operation of third party, open, and fair fixed income marketplaces. The regulatory financial burden should not be a key barrier to the development, delivery, and ongoing viability of beneficial existing or future fixed income market-places in Canada.

AND UPON the Director being satisfied that to do so would not be prejudicial to the public interest;

IT IS ORDERED by the Director, pursuant to section 8.1 of OSC Rule 13-502, that the Applicant is exempted from paying an activity fee of $4,800 in connection with the Application.

DATED this 7th day of January, 2019

“Tracey Stern”
Manager, Market Regulation
Ontario Securities Commission