Ontario Securities Commission To Codify Routine Exemptive Relief For International Firms

Summary

The Ontario Securities Commission (OSC) recently published for comment Proposed OSC Rule 32-506 - Exemptions for International Dealers, Advisers and Sub-Advisers ("Proposed Rule"). If adopted, the Proposed Rule would codify certain relief from registration requirements in the Commodity Futures Act ("CFA") and OSC Rule 91-502 - Trades in Recognized Options ("Rule 91-502") that have been routinely granted by the OSC on a discretionary basis. The Proposed Rule is intended to enhance institutional investor access to international options and futures markets and reduce the regulatory burden on international firms that offer trading or advisory services to institutional clients in Ontario in relation to options and commodity futures contracts that trade on foreign exchanges. The OSC is accepting comments on the Proposed Rule until March 1, 2021.