An Ontario court has ruled that an arbitration judgment in favour of the New York Stock Exchange LLC (NYSE) against a Toronto-based technology firm can be enforced in Ontario.
Ontario’s Superior Court of Justice ruled in favour of the NYSE, which was seeking to enforce an arbitration award against Orbixa Technologies Inc. that was handed down in New York earlier this year.
According to the decision, the firms became embroiled in a dispute in 2012 over the fees Orbixa was to pay the exchange for market data. That dispute went to arbitration, which the NYSE won, resulting in a US$3.5 million judgment in its favour.
That award was not paid within 30 days as required, and so, the NYSE sought to have the award recognized as binding in Ontario, and declared enforceable similar to a judgment of the court.
The decision says Orbixa argued that the court should decline to enforce the award and dismiss the NYSE’s application as premature. It has asked the U.S. Securities and Exchange Commission (SEC) to review the circumstances that led to the initial dispute. No decision has been made in that proceeding.
The court sided with the NYSE, ruling that the arbitration award is final and binding. “The SEC application is a separate regulatory proceeding which does not render the award invalid,” it says, adding that enforcement of the award is not contrary to public policy in Ontario. “Orbixa received a full hearing and argument and exercised its rights of review,” it says.
As a result, the court ruled that the NYSE’s application is allowed and it ordered a judgment recognizing the award and requiring Orbixa to pay the NYSE US$3.5 million plus prejudgment interest and costs.