ICE NGX Canada Inc.

Headnote

Section 78 of the Commodity Futures Act (Ontario) and section 144 of the Securities Act (Ontario) -- Application for an order varying an existing order exempting ICE NGX Canada Inc. from the requirement to be recognized as a commodity futures exchange and an exchange to allow it to trade contracts based on environmental products -- requested order granted.

Applicable Legislative Provisions

Commodity Futures Act, R.S.O. 1990, c. C.20, as am., s. 78.

Securities Act, R.S.O. 1990 c. S.5, as am., ss. 21, 144.

IN THE MATTER OF
THE COMMODITY FUTURES ACT, R.S.O. 1990,
CHAPTER C.20, AS AMENDED (CFA)

AND

IN THE MATTER OF
THE SECURITIES ACT, R.S.O. 1990,
CHAPTER S.5, AS AMENDED (OSA)

AND

IN THE MATTER OF
ICE NGX CANADA INC. (NGX)

VARIATION TO EXEMPTION ORDER
(Section 78 of the CFA and Section 144 of the OSA)
 

WHEREAS the Commission granted an order dated July 27, 2012 (2012 Order):

(a) pursuant to section 80 of the CFA, exempting NGX from the requirement to be registered as a commodity futures exchange under section 15 of the CFA;

(b) pursuant to section 38 of the CFA, exempting trades by NGX participants (Participants) in Ontario (Ontario Participants) in contracts on NGX (Contracts) from the registration requirement under section 22 of the CFA;

(c) pursuant to section 38 of the CFA, exempting trades by Ontario Participants in Contracts from the requirements under section 33 of the CFA; and

(d) pursuant to section 147 of the OSA, exempting NGX from the requirement to be recognized as an exchange under section 21 of the OSA;

AND WHEREAS NGX filed an application (theEnvironmental Products Application) requesting the 2012 Order be varied to authorize NGX to offer Contracts for products based on environmental quality, including emissions or emission credits (Environmental Products);

AND WHEREAS NGX has represented to the Commission as follows.

1. The Environmental Products will be traded and cleared through the Trading System and Clearing System, respectively, each as defined in the 2012 Order.

2. Access to the Trading System and the Clearing System is restricted to Participants, each of which:

(a) has entered into a Contracting Party's Agreement;

(b) has, or is controlled directly or indirectly, by an entity which has a net worth exceeding $5,000,000 or total assets exceeding $25,000,000 (NGX Sophistication Thresholds); and

(c) uses the Trading System and Clearing System only as principal.

3. The Environmental Products are Contracts that fall under the definitions of "commodity futures contract" or "commodity futures option" set out in section 1 of the CFA.

4. NGX seeks to provide Ontario Participants with access to trading in Environmental Products in Ontario.

AND WHEREAS based on the 2012 Order and the representations made to the Commission, the Commission is satisfied that it is not prejudicial to the public interest to vary the 2012 Order;

IT IS ORDERED by the Commission that:

(a) the 2012 Order is varied by inserting "and products based on environmental quality, including emissions and emission credits" immediately following "... and crude oil products" in representation number 2;

(b) the 2012 Order is varied by inserting "and environmental quality" immediately preceding "related commodities" in representation number 3; and

(c) section 9 Products of Schedule "E" Terms and Conditions to the 2012 Order is amended by replacing "and renewable energy certificates" with "renewable energy certificates, and products based on environmental quality, including emissions or emission credits,"

provided that NGX continues to comply with the applicable terms and conditions set out in Schedule "E" to the 2012 Order.

DATED this 9th day of November, 2023.