The Canadian Trading and Quotation System Inc. reported yesterday that the Ontario Securities Commission has approved proposed rule and policy amendments, allowing it to launch its alternative market.

Along with approving the rule amendments, the OSC also approved an amendment to CNQ’s recognition order to enable CNQ to operate Pure Trading, its planned alternative market. The new market, which will trade securities listed on other Canadian exchanges, is slated to launch October 12.

The proposed rules were published for comment on October 11, 2005. CNQ said it received one comment on the proposed rules (from Market Regulation Services Inc.), and has made further amendments to the proposed rules as a result. The amendments were technical changes to wording rather than substantive, so they have not been republished for comment.

The amendments are effective immediately except for new Rule 11, which will be effective on the launch of the Pure Trading System.

CNQ has previously indicated that Pure Trading will commence its operations in two phases. A cross printing facility will be the first component of the marketplace available to Pure Trading participants. The full continuous auction market is scheduled to be implemented four to six weeks after the initial launch to permit participants and their service providers to finalize development and testing efforts for connectivity to the Pure Trading marketplace.