REQUEST FOR COMMENTS
AEQUITAS NEO EXCHANGE
PROPOSED TRADING OF FOREIGN-LISTED STRUCTURED PRODUCTS
Aequitas NEO Exchange Inc. (“NEO” or the “NEO Exchange”) is seeking to trade certain foreign-listed structured products (“Foreign-Listed Structured Product Notes”) on an unlisted basis (“Cross-trading”).
The Foreign-Listed Structured Product Notes will be foreign exchange-traded securities within the definition in National Instrument 21-101 Marketplace Operation (“NI 21-101”). As foreign exchange-traded securities, the trading of Foreign-Listed Structured Product Notes on NEO Exchange will be subject to section 5.9 of NI 21-101 with respect to providing a risk disclosure statement to, and prior to accepting the first order obtaining acknowledgement from, market participants, and sections 7.3 and 7.4 on NI 21-101 with respect to order and trade transparency requirements.
A copy of the NEO Exchange notice is published on our website at www.osc.gov.on.ca. The NEO Exchange notice includes the universe of Foreign-Listed Structured Product Notes that will be considered initially for Cross-trading, and the conditions NEO proposes to apply, given the nature of the securities, to ensure the Foreign-Listed Structured Product Notes are meaningfully traded in the foreign markets and to assess the issuers’ creditworthiness, and operational considerations.