The Ontario Securities Commission has published for comment the application by Bourse de Montréal Inc. for an exemption from recognition as a stock exchange.

It is also seeking an exemption from the requirement to be registered as a commodity futures exchange. And, it’s publishing a draft exemption order allowing the exemptions.

In response to the restructuring of the exchanges, the CSA developed a lead regulator model of exchange regulation, which is outlined in a memo published on September 13. The lead regulator model provides that each exchange has a lead regulator and the other jurisdictions within which the exchange carries on business rely on that regulator to conduct front-line oversight of that exchange. Each lead regulator is obligated to report back to the other regulators on its oversight activities on a quarterly basis as well as annually to the CSA chairs.

The Montreal Exchange is recognized as a self-regulatory organization by the Quebec Securities Commission. On September 26, 2000 the OSC granted the ME a temporary order exempting it from the requirement to be recognized as a stock exchange and registered as a commodity futures exchange. An amended, temporary order was issued on October 3, 2000 to reflect the demutualization of the ME on October 1, 2000. The order expires on January 31, 2003. So, the Bourse has applied for a permanent exemption.

Comments are due by January 13, 2003.