MSC Issues Blanket Order Exempting Certain Derivative-Like Securities From Prospectus And Registration Requirements And OTC Derivatives From Registration Requirements

On October 21, 2015 the Manitoba Securities Commission (MSC)  issued a Blanket Order 91-501 Over-the-Counter Trades in Derivatives  (the Blanket Order) to exempt over-the-counter trades in derivatives or derivative-like securities from the registration requirements of the Manitoba Securities Act (the Manitoba Act) if each party is a “qualified party” or the trade is in a physical commodity contract.

Registration

The Manitoba Act requires that a person be registered in accordance with the regulations in order to trade in a security or derivative. However, as yet no derivatives dealer registration categories have been established by regulation. Until the regulations are developed, the new Blanket Order will provide exemptive relief from the registration requirement for over-the-counter trades in both derivatives and derivative-like securities. An over-the-counter trade is essentially a trade that is not over a securities or futures exchange. A