Alpha Exchange Inc. -- Section 15.1 of NI 21-101 Marketplace Operation and section 6.1 of OSC Rule 13-502 Fees

Order

Headnote

Section 15.1 of National Instrument 21-101 Marketplace Operation (21-101) and section 6.1 of OSC Rule 13-502 Fees (13-502) -- exemption granted from the requirement in paragraph 3.2(1)(b) of 21-101 to file an amendment to Form 21-101F1 (Form F1) 45 days prior to implementation of a fee change and from the requirements in Appendix C (item E(1) and item E(2)(a)) of 13-502 to pay fees related to Alpha Exchange Inc. exemption application provided that the fee change has been filed at least 7 business days before implementation.

Applicable Legislative Provision

Securities Act, R.S.O. 1990, c. S.5, as am.
National Instrument 21-101 Marketplace Operation, s. 15.1.
Rule 13-502 Fees, s. 6.1

IN THE MATTER OF
THE SECURITIES ACT,
R.S.O. 1990, c. S.5, AS AMENDED

AND

IN THE MATTER OF
ALPHA EXCHANGE INC.

ORDER
(Section 15.1 of National Instrument 21-101 Marketplace Operation
(NI 21-101) and section 6.1 of OSC Rule 13-502 Fees)

    UPON the application (the "Application") of Alpha Exchange Inc. (the "Applicant") to the Director for an order pursuant to section 15.1 of NI 21-101 exempting the Applicant from the requirement in paragraph 3.2(1)(b) to file an amendment to the information previously provided in Form 21-101F1 (the "Form") regarding Exhibit N (fees) 45 days before implementation of the fee changes (the "45 day filing requirement");

    AND UPON the Applicant having filed an updated Form F1 on May 2, 2012, describing a fee change to be implemented June 1, 2012 (the "Fee Change");

    AND UPON the application by the Applicant (the "Fee Exemption Application") to the Director for an order pursuant to section 6.1 of Rule 13-502 exempting the Applicant from the requirement to pay an activity fee of (a) $5,000 in connection with the Application in accordance with section 4.1 and item E(1) of Appendix C of Rule13-502, and (b) $1,500 in connection with the Fee Exemption Application (Appendix C, item E(2)(a));

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

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

1. The Applicant operates Alpha Exchange Inc. and is a recognized exchange in Ontario. It has received an exemption from registration in Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland, Nova Scotia, Prince Edward Island, Quebec, Saskatchewan, North West Territories, Yukon and Nunavut.

2. The Applicant would like to implement changes to its fee schedule on June 1, 2012.

3. These changes are being implemented after consultation and notice required in the Member Agreement.

4. These changes to trading fees are being implemented as a result of new trading functionality which is expected to be available in June.

5. Given that the notice period was created prior to multi-marketplaces becoming a reality, and in light of the current competitive environment and the limited and highly technical nature of the exemption being sought, it would be unduly onerous to pay fees in these circumstances;

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

    IT IS ORDERED by the Director:

  1. pursuant to section 15.1 of NI 21-101 that the Applicant is exempted from the 45 day filing period for the Fee Change, and
  2. pursuant to section 6.1 of Rule 13-502 that the Applicant is exempted from:
    1. paying an activity fee of $5,000 in connection with the Application, and
    2. paying an activity fee of $1,500 in connection with the Fee Exemption Application.

DATED this 25 day of May, 2012

 

“Tracey Stern”
Manager, Market Regulation
Ontario Securities Commission