Recent Exemptive Relief Provides Additional Flexibility For Offering Derivatives To Retail And Institutional Investors

We have recently obtained separate exemptions for clients relating to the offering of derivatives to Canadian investors. As described below, one exemption permits each of the applicants and non-individual permitted client counterparties to enter into over-the-counter (OTC) derivative transactions, without having to comply with dealer registration and prospectus requirements. The other exemption is the first "passport" exemption which permits "contracts for difference" (CFDs), including foreign exchange (forex) contracts to be distributed to retail investors (without a prospectus) in almost all provinces and territories. The latter exemption is also significantly different than the single province exemptions previously granted for CFDs, because it involves a Canadian dealer utilizing the online platform of an arm's length global solutions provider.