Securities Law & Instruments

Headnote

Application pursuant to section 144 of the Act in connection with trades in futures and options on behalf of institutional investors that are routed through the electronic order-routing system, pursuant to an order and ruling granted by the Commission to the Applicants in respect of such trades on July 5, 2005, for an order varying the prior decision.

Statutes Cited

Securities Act, R.S.O. 1990, c. S.5, as am., s. 144.

IN THE MATTER OF

THE SECURITIES ACT,

R.S.O. 1990 C.S.5, AS AMENDED (THE ACT)

AND

IN THE MATTER OF

UBS SECURITIES LLC

AND

BLOOMBERG TRADEBOOK CANADA COMPANY

 

ORDER

(Section 144 of the Act)

UPON the application (the Application) of UBS Securities LLC (UBS LLC) and Bloomberg Tradebook Canada Company (Tradebook Canada) (the Applicants) to the Ontario Securities Commission (the Commission), in connection with trades in futures and options on behalf of institutional investors that are routed through the electronic order-routing system made available by Tradebook Canada (the TBFO System) and executed by UBS LLC pursuant to an order and ruling granted by the Commission to the Applicants in respect of such trades on July 5, 2005 (the Prior Decision), for an order varying the Prior Decision pursuant to section 144 of the Act;

AND UPON the Applicants having represented to the Commission as follows:

1. UBS LLC and certain of its affiliates other than UBS Securities Canada Inc. (collectively, UBS) are engaged in the business of providing execution and, unless the client has directed otherwise, clearing broker services for trades in futures and options on futures as well as options on securities and options on securities indices for clients in the United States and throughout the world. On the basis of the Prior Decision, UBS, together with Tradebook Canada, Bloomberg Tradebook LLC, and Bloomberg Tradebook (Bermuda) Ltd. (collectively, Bloomberg Tradebook), currently offer to Institutional Investors (as defined in Appendix 1 to the Prior Decision) in Ontario access to the TBFO System, providing an efficient and convenient means for Institutional Investors to trade in Futures and Options (each as defined in the Prior Decision) through the international brokerage services of UBS.

2. The term "Futures" is defined in paragraph 7 of the Prior Decision and explicitly excludes ME Futures. Trades in ME Futures were excluded from the scope of the relief granted in the Prior Decision because neither of the Applicants were registered as a futures commission merchant (FCM) under the Commodity Futures Act (Ontario) (the CFA).

3. Since the Applicants commenced offering the TBFO System to Institutional Investors in Ontario, significant customer demand has arisen for trading in ME Futures over the TBFO System.

4. Tradebook Canada has sought and obtained registration with the Commission as an FCM under the CFA, effective March 22, 2007.

AND UPON considering the Application and the recommendation of Staff of the Commission;

AND UPON the Commission being satisfied that it would not be prejudicial to the public interest to grant the order requested;

IT IS ORDERED pursuant to section 144 of the Act that, provided that at the time the trading activity is engaged in Tradebook Canada is registered as an FCM under the CFA or any successor legislation to the CFA, the words "other than" appearing in the definition of "Futures" in paragraph 7 of the Prior Decision are replaced with the word "including" such that paragraph 7 of the Prior Decision shall now appear as follows:

7. UBS LLC and certain of its affiliates other than UBS Securities Canada Inc. (collectively, "UBS") are engaged in the business of providing execution and, unless the client has directed otherwise, clearing broker services for trades in futures and options on futures including futures and options on futures traded on the Bourse de Montreal (collectively, "Futures") and options on securities and options on securities indices (collectively, "Options") for clients in the United States and throughout the world.

AND IT IS ORDERED pursuant to section 144 of the Act that, provided that at the time the trading activity is engaged in Tradebook Canada is registered as an FCM under the CFA or any successor legislation to the CFA, the first sentence of paragraph 12 of the Prior Decision is replaced with the following sentence:

12. UBS LLC trades Futures listed on futures exchanges located primarily outside of Canada and cleared through clearing corporations located primarily outside of Canada and Options listed on options exchanges located primarily outside of Canada and cleared through clearing corporations located primarily outside Canada.

April 17, 2007

"Robert L. Shirriff"

"Lawrence Ritchie"