The Ontario Securities Commission reports in its latest bulletin that the Natural Gas Exchange Inc. has applied to the commission for an exemption from the requirement to be registered as an exchange under both the Commodity Futures Act and the Securities Act.

NGX offers electronic trading on a principal-to-principal basis of a variety of energy commodity derivatives contracts including commodity futures contracts and futures contract options. It proposes to offer direct electronic access to trading in its contracts to qualifying market participants in Ontario.

The firm is already recognized as an exchange and clearing agency by the Alberta Securities Commission. To carry on business in Ontario, it is required to be recognized as an exchange or apply for exemptions from both requirements. NGX is currently operating in Ontario under an interim exemption order. It has now applied for a permanent exemption from the registration and recognition requirements on the basis that it is already subject to regulatory oversight by the ASC.

Subject to comments received, OSC staff will recommend that the commission grant an exemption order with terms and conditions based on a proposed draft order. Comments on the proposed order are due by February 23.

IE