Section 144 of the Securities Act (Ontario) (Act) – Application for an order revoking an order issued on February 1, 2011, granting ICE Clear Canada, Inc., pursuant to section 147 of the Act, an exemption from the requirement to be recognized as a clearing agency under subsection 21.2(0.1) of the Act.
Securities Act, R.S.O. 1990, c. S. 5 as am., ss. 21.2, 144, 147.
National Instrument 24-102 Clearing Agency Requirements s. 2.3(1).
IN THE MATTER OF
THE SECURITIES ACT,
R.S.O. 1990, CHAPTER S.5, AS AMENDED
IN THE MATTER OF
ICE CLEAR CANADA, INC.
REVOCATION ORDER (Section 144 of the Act)
WHEREAS the Ontario Securities Commission (Commission) issued an order dated February 1, 2011 and effective March 1, 2011 exempting ICCA, pursuant to section 147 of the Act, from the requirement to be recognized as a clearing agency under subsection 21.2 (0.1) of the Act (Exemption Order);
AND WHEREAS on May 1, 2018 ICCA filed with the Commission a report on Form 24-102F2 Cessation of Operations Report for Clearing Agency under National Instrument 24-102 Clearing Agency Requirements, and filed an amended Form 24-102F2 dated July 3, 2018;
AND WHEREAS ICCA has notified the Commission that:
(i) All futures and options on futures contracts (Contracts) listed for trading on ICE Futures Canada, Inc. (IFCA), the parent company of ICCA, were transitioned to an affiliated company, ICE Futures U.S., Inc. (IFUS), over the time period July 27, 2018 to July 30, 2018 and trading in the Contracts commenced on IFUS as at trade date July 30, 2018;
(ii) All open positions at ICCA the designated clearing agency for IFCA, were transitioned to an affiliated company, ICE Clear US, Inc. (ICUS), the designated clearing agency for IFUS, on Monday, July 30, 2018 (Transition);
(iii) ICCA implemented transition rules that provided that, inter alia, all open positions held in house accounts and customer accounts of registered participants of ICCA (Clearing Participant) were transitioned and novated to house accounts and customer accounts of registered members of ICUS pursuant to the provision of agreements between IFCA, IFUS, ICCA, ICUS, ICUS Clearing Members and ICCA Clearing Participants and the novation of open positions took place as at 9:30 am (CT) on Monday July 30, 2018;
(iv) On Monday July 30, 2018 payments were made by ICCA to ICCA Clearing Participants to return all margin monies and all guaranty fund deposits;
(v) ICCA ceased operations as a clearing agency as at the close of business on Monday July 30, 2018;
(vi) ICCA had previously notified all stakeholders of the foregoing, including Clearing Participants, market participants, shareholders, regulators, and required government agencies of the matters set out above;
(vii) ICCA intends, as soon as practicable after the Transition and after fulfilling all statutory and other legal requirements, to dissolve as a corporation.
AND WHEREAS ICCA has requested that the Exemption Order be revoked as soon as practicable after July 31, 2018;
AND WHEREAS staff of the Manitoba Securities Commission (MSC), the lead authority of ICCA, have confirmed that the MSC revoked its order designating ICCA as a recognized clearing house on August 13, 2018;
AND WHEREAS the Commission is of the opinion that it would not be prejudicial to the public interest to revoke the Exemption Order;
THE COMMISSION hereby revokes the Exemption Order pursuant to section 144 of the Act.
DATED this 17th day of August 2018.