Unofficial Consolidation: Form 21-101F1 Information Statement Exchange or Quotation and Trade Reporting System

Unofficial Consolidation: Form 21-101F1 Information Statement Exchange or Quotation and Trade Reporting System

Forms

Ontario Securities Commission

Form 21-101F1

Unofficial consolidation current to 2020-09-14

This document is not an official statement of law or policy and should be used for reference purposes only.

FORM 21-101F1
INFORMATION STATEMENT
EXCHANGE OR QUOTATION AND TRADE REPORTING SYSTEM

Filer:

EXCHANGE

QUOTATION AND TRADE REPORTING SYSTEM

Type of Filing:

INITIAL

AMENDMENT; AMENDMENT No.

  1. Full name of exchange or quotation and trade reporting system:

 

  1. Name(s) under which business is conducted, or name of market or facility, if different from item 1:

 

  1. If this filing makes a name change on behalf of the exchange or quotation and trade reporting system in respect of the name set out in item 1 or item 2, enter the previous name and the new name:

Previous name:

New name:

  1. Head office

Address:

Telephone:

Facsimile:

  1. Mailing address (if different):

 

  1. Other offices

Address:

Telephone:

Facsimile:

  1. Website address:

 

  1. Contact employee

Name and title:

Telephone number:

Facsimile:

E-mail address:

  1. Counsel

Firm name:

Contact name:

Telephone number:

Facsimile:

E-mail address:

  1. Market Regulation is being conducted by:

           the exchange

           the quotation and trade reporting system

           regulation services provider other than the filer (see Exhibit M)

EXHIBITS

File all Exhibits with the Filing. For each Exhibit, include the name of the exchange or quotation and trade reporting system, the date of filing of the Exhibit and the date as of which the information is accurate (if different from the date of the filing). If any Exhibit required is inapplicable, a statement to that effect must be included instead of the Exhibit.

Except as provided below, if the filer, recognized exchange or recognized quotation and trade reporting system files an amendment to the information provided in its Filing and the information relates to an Exhibit filed with the Filing or a subsequent amendment, the filer, recognized exchange or recognized quotation and trade reporting system, must, in order to comply with subsection 3.2(1), (2) or (3) of National Instrument 21-101 Marketplace Operation, provide a description of the change and the actual or expected date of the implementation of the change, and file a complete and updated Exhibit. The filer must provide a blacklined version showing changes from the previous filing.

If the filer, recognized exchange or recognized quotation and trade reporting system has otherwise filed the information required by the previous paragraph pursuant to section 5.5 of National Instrument 21-101 Marketplace Operation, it is not required to file the information again as an amendment to an Exhibit. However, if supplementary material relating to a filed rule is contained in an Exhibit, an amendment to the Exhibit must also be filed.

Exhibit A – Corporate Governance

  1. Legal status:

           Corporation

           Partnership

           Sole Proprietorship

           Other (specify):

  1. Except where the exchange or quotation and trade reporting system is a sole proprietorship, indicate the following:

1.           Date (DD/MM/YYYY) of formation.

2.           Place of formation.

3.           Statute under which exchange or quotation and trade reporting system was organized.

  1. Provide a copy of the constating documents (including corporate by-laws), shareholder agreements, partnership agreements and other similar documents, and all subsequent amendments.

 

  1. Provide the policies and procedures to address potential conflicts of interest arising from the operation of the marketplace or the services it provides, including those related to the commercial interest of the marketplace, the interests of its owners and its operators, the responsibilities and sound functioning of the marketplace, and those between the operations of the marketplace and its regulatory responsibilities.

Exhibit B – Ownership

In the case of an exchange or quotation and trade reporting system that is a corporation, other than an exchange or quotation and trade reporting system that is a reporting issuer, provide a list of the beneficial holders of 10 percent or more of any class of securities of the exchange or quotation and trade reporting system. For each listed security holder, provide the following:

  1. Name.
  2. Principal business or occupation and title, if any.
  3. Ownership interest, including the total number of securities held, the percentage of the exchange or quotation and trade reporting system's issued and outstanding securities held, and the class or type of security held.
  4. Whether the security holder has control (as interpreted in subsection 1.3(2) of National Instrument 21-101 Marketplace Operation).

In the case of an exchange or quotation and trade reporting system that is a partnership, sole proprietorship or other type of organization, provide a list of the registered or beneficial holders of the partnership interests or other ownership interests in the exchange or quotation and trade reporting system. For each person or company listed, provide the following:

  1. Name.
  2. Principal business or occupation and title, if any.
  3. Nature of the ownership interest, including a description of the type of partnership interest or other ownership interest.
  4. Whether the person or company has control (as interpreted in subsection 1.3(2) of National Instrument 21-101 Marketplace Operation).

Exhibit C - Organization

  1. A list of partners, directors, officers, governors, and members of the board of directors and any standing committees of the board, or persons performing similar functions, who presently hold or have held their offices or positions during the previous year, indicating the following for each:

1.           Name.

2.           Principal business or occupation and title.

3.           Dates of commencement and expiry of present term of office or position.

4.           [Repealed]

5.           [Repealed]

6.           Whether the person is considered to be an independent director.

  1. A list of the committees of the board, including their mandates and the Board mandate.

Exhibit D - Affiliates

  1. For each affiliated entity of the exchange or quotation and trade reporting system provide the name, head office address and describe the principal business of the affiliate.

 

  1. For each affiliated entity of the exchange or quotation and trade reporting system

(i)           to which the exchange or quotation and trade reporting system has outsourced any of its key services or systems affecting the market or facility described in Exhibit E – Operations of the Marketplace, including order entry, trading, execution, routing and data, or

(ii)          with which the exchange or quotation and trade reporting system has any other material business relationship, including loans, cross-guarantees, etc.

provide the following information:

1.           Name and address of the affiliate.

2.           [Repealed]

3.           A description of the nature and extent of the contractual and other agreements with the exchange and quotation and trade reporting system, and the roles and responsibilities of the affiliate under the arrangement.

4.           A copy of each material contract relating to any outsourced functions or other material relationships.

5.           [Repealed]

6.           [Repealed]

Exhibit E – Operations of the Marketplace

Describe in detail the manner of operation of the market or facility and its associated functions. This must include, but is not limited to, a description of the following:

1.           The structure of the market (e.g., call market, auction market, dealer market).

2.           Means of access to the market or facility and services.

3.           The hours of operation.

4.           A description of the services offered by the marketplace, including, but not limited to, order entry, co-location, trading, execution, routing and data.

5.           A list of the types of orders offered, including, but not limited to, a description of the features and characteristics of orders.

6.           Procedures regarding the entry, display and execution of orders. If indications of interest are used, please describe the information they include and list the types of recipients.

7.           [Repealed]

8.           [Repealed]

9.           A description of order and trade reporting procedures.

10.         A description of procedures for clearance and settlement of transactions.

11.         The safeguards and procedures of the marketplace to protect trading information of marketplace participants.

12.         Training provided to participants and a copy of any materials provided both with respect to systems of the marketplace, the requirements of the marketplace, and the rules of the regulation services providers, if applicable.

13.         Steps taken to ensure that marketplace participants have knowledge of and comply with the requirements of the marketplace.

The filer must provide all policies, procedures and trading manuals related to the operation of the marketplace and, if applicable, the order router.

The filer must provide all material contracts related to order routing, execution, trade reporting, trade comparison, data feeds, market surveillance and trade clearing.

Exhibit F – Outsourcing

Where the exchange or quotation and trade reporting system has outsourced the operation of key services or systems affecting the market or facility described in Exhibit E – Operations of the Marketplace to an arms-length third party, including any function associated with the routing, trading, execution, data, clearing and settlement and, if applicable, surveillance, provide the following information:

1.           Name and address of person or company to whom the function has been outsourced.

2.           A description of the nature and extent of the contractual or other agreement with the exchange or quotation and trade reporting system and the roles and responsibilities of the arms-length party under the arrangement.

3.           A copy of each material contract relating to any outsourced function.

4.           A copy of the marketplace's policies and procedures for the selection of service providers to which key services and systems may be outsourced and for the evaluation and approval of such outsourcing arrangements that are established and maintained pursuant to paragraph 5.12(a) of National Instrument 21-101 Marketplace Operation.

5.           A description of any conflicts of interest between the marketplace and the service provider to which key services and systems are outsourced and a copy of the policies and procedures to mitigate and manage such conflicts of interest that have been established pursuant to paragraph 5.12(b) of National Instrument 21-101 Marketplace Operation.

6.           A description of the measures the marketplace has taken pursuant to paragraph 5.12(f) of National Instrument 21-101 Marketplace Operation to ensure that the service provider has established, maintains and periodically tests an appropriate business continuity plan, including a disaster recovery plan.

7.           A description of the measures the marketplace has taken pursuant to paragraph 5.12(g) of National Instrument 21-101 Marketplace Operation to ensure that the service provider protects the proprietary, order, trade or any other confidential information of the participants of the marketplace.

8.           A copy of the marketplace's processes and procedures to regularly review the performance of a service provider under an outsourcing arrangement that are established pursuant to paragraph 5.12(h) of National Instrument 21-101 Marketplace Operation.

Exhibit G - Systems and Contingency Planning

General

Provide:

1.           A high-level description of the marketplace's systems that support order entry, order routing, execution, trade reporting, trade comparison, data feeds, co-location and if applicable, market surveillance and trade clearing.

2.           An organization chart of the marketplace's information technology group unless otherwise provided as part of the report required by subsection 12.2(1) of National Instrument 21-101 Marketplace Operation.

Business Continuity Planning

Please provide a description of the marketplace's business continuity and disaster recovery plans that includes, but is not limited to, information regarding the following:

1.           Where the primary processing site is located.

2.           What the approximate percentage of hardware, software and network redundancy is at the primary site.

3.           Any uninterruptible power source (UPS) at the primary site.

4.           How frequently market data is stored off-site.

5.           Any secondary processing site, the location of any such secondary processing site, and whether all of the marketplace's critical business data is accessible through the secondary processing site.

6.           The creation, management, and oversight of the plans, including a description of responsibility for the development of the plans and their ongoing review and updating.

7.           Escalation procedures, including event identification, impact analysis, and activation of the plans in the event of a disaster or disruption.

8.           Procedures for internal and external communications, including the distribution of information internally, to the securities regulatory authority, and, if appropriate, to the public, together with the roles and responsibilities of marketplace staff for internal and external communications.

9.           The scenarios that would trigger the activation of the plans.

10.         How frequently the business continuity and disaster recovery plans are tested.

11.         Procedures for record keeping in relation to the review and updating of the plans, including the logging of tests and deficiencies.

12.         The targeted time to resume operations of critical information technology systems following the declaration of a disaster by the marketplace and the service level to which such systems are to be restored.

13.         Any single points of failure faced by the marketplace.

Systems Capacity

Please provide information regarding:

1.           How frequently future market activity is evaluated in order to adjust processing capacity.

2.           The approximate excess capacity maintained over average daily transaction volumes.

3.           How often or at what point stress testing is performed.

Systems

Please provide information regarding:

1.           Whether the trading engine was developed in-house or by a commercial vendor.

2.           Whether the trading engine is maintained in-house or by a commercial vendor and provide the name of the commercial vendor, if applicable.

3.           The marketplace's networks. Please provide a copy of a high-level network diagram of the systems referred to in section 12.1 of National Instrument 21-101 Marketplace Operation, as applicable, together with a description of the external points of contact for the marketplace's networks.

4.           The message protocols supported by the marketplace's systems.

5.           The transmission protocols used by the marketplace's systems.

IT Risk Assessment

Please describe the IT risk assessment framework, including:

1.           How the probability and likelihood of IT threats are considered.

2.           How the impact of risks is measured according to qualitative and quantitative criteria.

3.           The documentation process for acceptable residual risks with related offsets.

4.           The development of management's action plan to implement a risk response to a risk that has not been accepted.

Exhibit H – Custody of Assets

  1. If the exchange or quotation and trade reporting system proposes to hold funds or securities of a marketplace participant on a regular basis, a description of the controls that will be implemented to ensure the safety of the funds or securities.

 

  1. If any other person or company, other than the exchange or quotation and trade reporting system, will hold or safeguard funds or securities of a marketplace participant on a regular basis, provide the name of the person or company and a description of the controls that will be implemented to ensure the safety of the funds or securities.

Exhibit I - Securities

  1. List the types of securities listed on the exchange or quoted on the quotation and trade reporting system. If this is an initial filing, list the types of securities the filer expects to list or quote.

 

  1. List the types of any other securities that are traded on the marketplace or quoted on the quotation and trade reporting system, indicating the exchange(s) on which such securities are listed. If this is an initial filing, list the types of securities the filer expects to trade.

Exhibit J – Access to Services

 

  1. A complete set of all forms, agreements or other materials pertaining to access to the services of the marketplace described in Exhibit E item 4, including trading on the exchange or quotation and trade reporting system.

 

  1. Describe the classes of marketplace participants.

 

  1. Describe the exchange or quotation and trade reporting service's criteria for access to the services of the marketplace.

 

  1. Describe any differences in access to the services offered by the marketplace to different groups or classes of marketplace participants.

 

  1. Describe conditions under which marketplace participants may be subject to suspension or termination with regard to access to the services of the exchange or quotation and trade reporting system.

 

  1. Describe any procedures that will be involved in the suspension or termination of a marketplace participant.

 

  1. Describe the exchange or quotation and trade reporting system's arrangements for permitting clients of marketplace participants to have access to the marketplace. Provide a copy of any agreements or documentation relating to these arrangements.

Exhibit K – Marketplace Participants

Provide an alphabetical list of all marketplace participants, including the following information:

1.           Name.

2.           Date of becoming a marketplace participant.

3.           Describe the type of trading activities primarily engaged in by the marketplace participant (e.g., agency trading, proprietary trading, registered trading, market making).

4.           The class of participation or other access. Please identify if the marketplace participant accesses the marketplace through co-location.

5.           Provide a list of all persons or entities that were denied or limited access to the marketplace, indicating for each

(i)           whether they were denied or limited access,

(ii)          the date the marketplace took such action,

(iii)          the effective date of such action, and

(iv)         the nature and reason for any denial or limitation of access.

Exhibit L - Fees

A description of the fee model and all fees charged by the marketplace, or by a party to which services have been directly or indirectly outsourced, including, but not limited to, fees relating to connecting to the market or facility, access, data, regulation (if applicable), trading, routing, and co-location, how such fees are set, and any fee rebates or discounts and how the rebates and discounts are set.

Exhibit M - Regulation

Market Regulation is being conducted by:

           the exchange or QTRS

  1. Provide a description of the regulation performed by the exchange or QTRS, including the structure of the department performing regulation, how the department is funded, policies and procedures in place to ensure confidentiality and the management of conflicts of interest, and policies and procedures relating to conducting an investigation.

 

  1. If more than one entity is performing regulation services for a type of security and the filer is conducting market regulation for itself and its members, provide a copy of the contract between the filer and the regulation services provider providing for co-ordinated monitoring and enforcement under section 7.5 of National Instrument 23-101 Trading Rules.

           a regulation services provider other than the filer (provide a copy of the contract between the filer and the regulation services provider)

Exhibit N – Acknowledgement

The form of acknowledgement required by subsection 5.9(2) of National Instrument 21-101 Marketplace Operation.

CERTIFICATE OF EXCHANGE OR QUOTATION AND TRADE REPORTING SYSTEM

The undersigned certifies that the information given in this report is true and correct.

DATED at _______________ this _________ day of ______________ 20 _____

__________________________________________________

(Name of exchange or quotation and trade reporting system)

__________________________________________________

(Name of director, officer or partner - please type or print)

__________________________________________________

(Signature of director, officer or partner)

__________________________________________________

(Official capacity - please type or print)