Exemption Orders (Discretionary)
INSTINET CORPORATION
2001 BCSECCOM 573
IN THE MATTER OF THE SECURITIES ACT
R.S.B.C. 1996, c. 418
AND
IN THE MATTER OF INSTINET CORPORATION
Exemption Order Under Section 48
[para 1]
WHEREAS Instinet Corporation has applied to the Executive Director for an order under section 48 of the Securities Act, R.S.B.C. 1996, c. 418 that it be exempt from the requirement in section 6(3) of the Securities Rules, B.C. Reg. 194/97, as varied by BC Instrument 33-503 Extension of Application Deadlines for Self-Regulatory Organizations (the “BCI”), to apply for membership in the Mutual Fund Dealers Association of Canada (the “MFDA”) or the Investment Dealers Association of Canada (the “IDA”) by May 23, 2001;
[para 2]
AND WHEREAS Instinet has represented to the Executive Director that:
1. Instinet was incorporated under the laws of the State of Delaware and is registered as a securities dealer under the Act;
2. Instinet operates in Canada as an electronic trading system and will therefore be subject to the requirement contained in proposed National Instrument 21-101 Marketplace Operation (the “Proposed NI”) to become a member of either the MFDA or the IDA, or will have to apply for an order to be exempt from that requirement;
3. in the absence of this order, as a securities dealer, Instinet is required to apply on or before May 23, 2001 to the MFDA, or the IDA, for membership;
[para 3]
AND WHEREAS the Executive Director considers that to do so would not be prejudicial to the public interest;
[para 4]
IT IS ORDERED under section 48 of the Act that, effective May 23, 2001, Instinet is exempt from the requirement of section 6(3) of the Rules, as varied by the BCI, to apply to become a member of the MFDA or IDA by May 23, 2001, provided that, within 60 days of the date of implementation of a Commission rule dealing with the subject matter of the Proposed NI, Instinet has either:
(a) applied for membership in the MFDA or IDA; or
(b) obtained a permanent exemption from the requirement to become a member of the MFDA or IDA from the Executive Director.
[para 5]
DATED June 4, 2001.
Gerry Halischuk
Director