Horizons ETFS Management (Canada) Inc. et al.
Headnote
National Policy 11-206 Process for Cease to be a Reporting Issuer Applications -- Application for an order that terminating exchange-traded funds are not reporting issuers under applicable securities laws -- relief granted.
Applicable Legislative Provisions
Securities Act, R.S.O. 1990, c. S.5, as am., s. 1(10)(a)(ii).
March 2, 2020
IN THE MATTER OF THE SECURITIES LEGISLATION OF ONTARIO (the Jurisdiction) AND IN THE MATTER OF THE PROCESS FOR CEASE TO BE A REPORTING ISSUER APPLICATIONS AND IN THE MATTER OF HORIZONS ETFS MANAGEMENT (CANADA) INC. (the Filer) AND HORIZONS S&P/TSX 60TM INDEX ETF HORIZONS S&P 500® INDEX ETF HORIZONS S&P 500 CAD HEDGED INDEX ETF HORIZONS S&P/TSX CAPPED ENERGY INDEX ETF HORIZONS S&P/TSX CAPPED FINANCIALS INDEX ETF HORIZONS CDN SELECT UNIVERSE BOND ETF HORIZONS NASDAQ-100® INDEX ETF HORIZONS EURO STOXX 50® INDEX ETF HORIZONS CDN HIGH DIVIDEND INDEX ETF HORIZONS US 7-10 YEAR TREASURY BOND ETF HORIZONS US 7-10 YEAR TREASURY BOND CAD HEDGED ETF HORIZONS LADDERED CANADIAN PREFERRED SHARE INDEX ETF HORIZONS INTL DEVELOPED MARKETS EQUITY INDEX ETF HORIZONS EQUAL WEIGHT CANADA REIT INDEX ETF HORIZONS EQUAL WEIGHT CANADA BANKS INDEX ETF HORIZONS GOLD ETF HORIZONS SILVER ETF HORIZONS CRUDE OIL ETF HORIZONS NATURAL GAS ETF BETAPRO GOLD BULLION 2X DAILY BULL ETF BETAPRO GOLD BULLION --2X DAILY BEAR ETF BETAPRO CRUDE OIL 2X DAILY BULL ETF BETAPRO CRUDE OIL --2X DAILY BEAR ETF BETAPRO NATURAL GAS 2X DAILY BULL ETF BETAPRO NATURAL GAS --2X DAILY BEAR ETF BETAPRO SILVER 2X DAILY BULL ETF BETAPRO SILVER --2X DAILY BEAR ETF BETAPRO S&P/TSX 60TM 2X DAILY BULL ETF BETAPRO S&P/TSX 60TM --2X DAILY BEAR ETF BETAPRO S&P/TSX CAPPED FINANCIALSTM 2X DAILY BULL ETF BETAPRO S&P/TSX CAPPED FINANCIALSTM --2X DAILY BEAR ETF BETAPRO S&P/TSX CAPPED ENERGYTM 2X DAILY BULL ETF BETAPRO S&P/TSX CAPPED ENERGYTM --2X DAILY BEAR ETF BETAPRO NASDAQ-100® 2X DAILY BULL ETF BETAPRO NASDAQ-100® --2X DAILY BEAR ETF BETAPRO S&P 500® 2X DAILY BULL ETF BETAPRO S&P 500® --2X DAILY BEAR ETF BETAPRO CANADIAN GOLD MINERS 2X DAILY BULL ETF BETAPRO CANADIAN GOLD MINERS --2X DAILY BEAR ETF BETAPRO MARIJUANA COMPANIES 2X DAILY BULL ETF BETAPRO MARIJUANA COMPANIES INVERSE ETF BETAPRO S&P/TSX 60TM DAILY INVERSE ETF BETAPRO S&P 500® DAILY INVERSE ETF BETAPRO S&P 500 VIX SHORT-TERM FUTURESTM ETF (each, a Horizons Fund, and collectively, the Horizons Funds)
ORDER
Background
The principal regulator in the Jurisdiction has received an application from the Filer, on behalf of the Horizons Funds, for an order under the securities legislation of the Jurisdiction of the principal regulator (the Legislation) that each Horizons Fund has ceased to be a reporting issuer in all jurisdictions of Canada in which each Horizons Fund is a reporting issuer (the Order Sought).
Under the Process for Cease to be a Reporting Issuer Applications (for a passport application):
(a) the Ontario Securities Commission is the principal regulator for this application, and
(b) the Filer has provided notice that subsection 4C.5(1) of Multilateral Instrument 11-102 Passport System (MI 11-102) is intended to be relied upon in each of the other provinces and territories of Canada.
Interpretation
Terms defined in National Instrument 14-101 Definitions and MI 11-102 have the same meaning if used in this order, unless otherwise defined.
Representations
This order is based on the following facts represented by the Filer:
1. none of the Horizons Funds are OTC reporting issuers under Multilateral Instrument 51-105 Issuers Quoted in the U.S. Over-the-Counter Markets;
2. the outstanding securities of each Horizons Fund are beneficially owned, directly or indirectly, by fewer than 15 securityholders in each of the jurisdictions of Canada and fewer than 51 securityholders in total worldwide;
3. no securities of any of the Horizons Funds, including debt securities, are traded in Canada or another country on a marketplace as defined in National Instrument 21-101 Marketplace Operation or any other facility for bringing together buyers and sellers of securities where trading data is publicly reported;
4. the Filer is applying for an order that each Horizons Fund has ceased to be a reporting issuer in all of the jurisdictions of Canada in which each Horizons Fund is currently a reporting issuer; and
5. none of the Horizons Funds are in default of securities legislation in any jurisdiction.
Order
The principal regulator is satisfied that the order meets the test set out in the Legislation for the principal regulator to make the order.
The decision of the principal regulator under the Legislation is that the Order Sought is granted.