Securities Law & Instruments

Headnote

Extension to the order temporarilyexempting the Bourse de Montréal from recognition asa stock exchange pursuant to section 21 of the Securities Act(Ontario) and registration as a commodity futures exchange pursuantto section 15 of the Commodity Futures Act (Ontario) and ordergranting an exemption from Part 4 of OSC Rule 91-502 until June28, 2002.

Provisions Cited

Securities Act, R.S.O. 1990,Chapter c. S.5, as amended, section 21, 147.

Commodity Futures Act, R.S.O1990, Chapter 20, as amended, sections 15, 80.

OSC Rule 91-502 Trades in RecognizedOptions, Part 4 and section 6.1.

IN THE MATTER OF

THE SECURITIES ACT, R.S.O.1990

CHAPTER c.S. 5, AS AMENDED(the Act)

AND

IN THE MATTER OF

THE COMMODITY FUTURES ACT

R.S.O 1990, CHAPTER 20, ASAMENDED

(the CFA)

AND

IN THE MATTER OF

OSC RULE 91-502 TRADES INRECOGNIZED OPTIONS (Rule 91-502)

AND

IN THE MATTER OF

BOURSE DE MONTRÉALINC.

ORDER

(section 147 of the Act, section80 of the CFA and section 6.1 of Rule 91-502)

WHEREAS the Bourse deMontréal Inc., previously known as the Montreal Exchangeand the Montréal Exchange Inc. (collectively referredto as the Bourse), has filed an application pursuant to section147 of the Act and section 80 of the CFA for an order exemptingthe Bourse from the requirement to be recognized as a stockexchange under section 21 of the Act and registered as a commodityfutures exchange under section 15 of the CFA;

AND WHEREAS the Boursehas filed an application for an order by the Director pursuantto section 6.1 of OSC Rule 91-502 that the Bourse is exemptfrom Part 4 of Rule 91-502 of the Commission;

AND WHEREAS the Bourserepresented that the Bourse carries on business as a stock exchangeand a derivatives exchange in Québec and is recognizedunder the Securities Act (Québec) as a self-regulatoryorganization;

AND WHEREAS the Bourserepresented that the contracts traded or to be traded on theBourse are approved by the Commission des valeurs mobilièresdu Québec (the CVMQ) and are filed with the Commission;

AND WHEREAS the Bourseis exempt from section 25 and section 53 of the Act pursuantto Ontario Securities Commission Rule 91-503 Trades of CommodityFutures Contracts and Commodity Futures Options Entered intoon Commodity Futures Exchanges Situate Outside of Ontario;

AND WHEREAS an Orderwas granted by the Commission dated October 3, 2000 (the October2000 Order) exempting the Bourse on an interim basis from therequirement to be recognized as a stock exchange under section21 of the Act and registered as a commodity futures exchangeunder section 15 of the CFA;

AND WHEREAS Orders weregranted by the Commission extending the October 2000 Order exemptingthe Bourse on an interim basis from the requirement to be recognizedas a stock exchange under section 21 of the Act and registeredas a commodity futures exchange under section 15 of the CFAuntil June 28, 2002;

AND WHEREAS the Commissionis satisfied that granting the Bourse an extension of the October2000 Order pursuant to section 147 of the Act and section 80of the CFA on an interim basis would not be contrary to thepublic interest;

IT IS ORDERED by theCommission pursuant to section 147 of the Act and section 80of the CFA, that the Bourse be exempt from the requirement tobe recognized as a stock exchange under section 21 of the Actand registered as a commodity futures exchange under section15 of the CFA; and

IT IS FURTHER ORDEREDby the Director pursuant to section 6.1 of Rule 91-502 thatthe Bourse is exempt from Part 4 of Rule 91-502;

PROVIDED THAT the Boursecontinues to be recognized as a self-regulatory organizationunder the Securities Act (Québec) and that the exemptionspursuant to section 147 of the Act, section 80 of the CFA andsection 6.1 of Rule 91-502 shall terminate at the earlier of:

(i) the date that the Bourseis granted an order by the Commission recognizing it as astock exchange and registering it as a commodity futures exchangeor exempting it from the requirement to be recognized as astock exchange and registered as a commodity futures exchange;and

(ii) January 31, 2003.

June 25, 2002.

"Paul Dempsey"                    "H.Lorne Morphy"                    "RobertL. Sherriff"