Bloomberg Tradebook LLC - s. 6.1 of OSC Rule 91-502

Decision

Headnote

Application to the Commission for an order, pursuant to section 6.1 of Rule 91-502, exempting the Applicant from the requirement in section 3.1 of Rule 91-502 which requires that no person shall trade in, or give advice on options unless he or she has successfully completed the Canadian Options Course, subject to the Applicant and its Representatives maintaining their registrations and proficiency which permit them to trade options in the United States.

Applicable Statutes

Ontario Securities Commission Rule 91-502 - Trades in Recognized Options.

May 5, 2006

IN THE MATTER OF

THE SECURITIES ACT,

R.S.O. 1990, CHAPTER S.5,

AS AMENDED (The ACT)

AND

IN THE MATTER OF

BLOOMBERG TRADEBOOK LLC

 

DECISION

(Section 6.1 of OSC Rule 91-502)

UPON the application of Bloomberg Tradebook LLC (the Applicant) to the Ontario Securities Commission (OSC) for an order pursuant to section 6.1 of OSC Rule 91-502 -- Trades in Recognized Options (Rule 91-502) exempting the Applicant and its directors, officers and employees that have passed the options proficiency examination administered by the U.S. National Association of Securities Dealers (NASD) and are involved in options trading in the United States (the Representatives), from the proficiency requirement in section 3.1 of Rule 91-502, in connection with the Applicant's proposed registration as a dealer in the category of limited market dealer;

AND UPON considering the application and the recommendation of staff of the Commission;

AND UPON the Applicant having represented to the Director that:

1. The Applicant is a limited liability company formed under the laws of the State of Delaware of the United States and is a wholly-owned subsidiary of Bloomberg L.P. The head office of the Applicant is located in New York, New York.

2. The Applicant is registered under the Act as an international dealer and intends to maintain such registration. The Applicant will be applying to the Commission for registration under the Act as a dealer in the category of limited market dealer. The Applicant is also registered as a broker-dealer with the U.S. Securities and Exchange Commission (SEC), as an introducing broker with the U.S. Commodity Futures Trading Commission (CFTC), and is a member of the U.S. National Association of Securities Dealers (NASD) and the U.S. National Futures Association.

3. The Applicant's registrations with the SEC and NASD include authorization to trade in equity options in the United States

4. The Applicant provides order routing and client-side trade execution services to its clients in respect of securities traded on exchanges and other marketplaces.

5. The Applicant proposes to expand its business by providing order routing and client-side trade execution services, including routing and execution of orders for trades in equity options, to institutional investors in Ontario.

6. The Applicant will not have custody of securities, funds, and other assets of clients resident in Ontario. The Applicant's clients will have their own clearing arrangements in place in respect of trades routed and/or executed by the Applicant.

AND UPON the Director being satisfied that it would not be prejudicial to the public interest to grant the exemption requested,

IT IS ORDERED that the Applicant, and its Representatives, be exempt from the requirements in section 3.1 of Rule 91-502, provided that the Applicant and its Representatives maintain their respective registrations with the SEC and NASD which permit the Applicant and its Representatives to trade options in the United States.

"David M. Gilkes"