(August 2 – 11:05 ET) – In connection with its plan to demutualize, the Montreal Exchange says it submitted on July 28 an application to the Quebec Securities Commission for the recognition of Montreal Exchange Inc. as a self-regulatory organization.
The application follows the approval of a demutualization plan by the governing committee of the ME on June 20. Following recognition by the QSC, the demutualization plan will be submitted for approval to ME members during a special meeting to be held this autumn.
Although already recognized as a self-regulatory organization, the ME says it must submit a new application for recognition pursuant to sections 169 and 172 of the Quebec Securities Act due to the structural changes in the demutualization plan that creates a new legal entity, Montreal Exchange Inc.
“In order for us to be accessible, efficient and attractive for all investors, the Montreal Exchange must have an ownership structure and business model that can adapt to the new developments affecting financial markets on a global scale. Demutualization will provide the Montreal Exchange with a modern business structure, a vital component for success as an exchange, especially in a context where our competitors already have this advantage ,” said Luc Bertrand, president and CEO of the ME.
-IE Staff