(April 10 – 11:50 ET) – The Ontario Securities Commission has granted a registration exemption for an alternative trading system, BRUT ECN LLC, allowing it to operate in Ontario.
The ATS applied for registration as an international dealer in December. But it was rejected on the basis that it does not act as an underwriter in the United States, or anywhere else. The OSC has granted the ATS an exemption from that requirement, allowing it to operate in Ontario.
The New York-based firm operates an electronic communications network that allows broker-dealers and institutional subscribers to trade U.S. equity securities. Subscribers connect to the ECN through a variety of interfaces, including proprietary and marketed front-end systems.
The firm does not intend to act as an underwriter in Ontario, and to obtain this relief it has agreed not to act as underwriter in that province. BRUT ECN LLC also agrees:
- to execute orders on behalf of clients in Ontario, but only in foreign securities that are not listed and posted on the Toronto Stock Exchange, the Montreal Exchange or the Canadian Venture Exchange;
- advise the OSC of any substantial changes to its electronic trading system and business;
- allow access on a confidential basis to its filings with the Securities and Exchange Commission;
- deliver a quarterly report identifying its Ontario clients and listing stocks traded on their behalf; and
- deliver a complete description of the controls and the mechanism to prevent trading in both interlisted and Canadian non-interlisted securities.
The ECN must also provide assorted other information to the OSC and SEC. These conditions will expire 60 days after the OSC finally implements a new regulatory regime for alternate trading systems.