Exemption Orders (Discretionary)
NATURAL GAS EXCHANGE INC.
2001 BCSECCOM 927
COR#01/102
ORDER UNDER SECTIONS 48, 60 AND 171 OF THE SECURITIES ACT R.S.B.C. 1996, c. 418
NATURAL GAS EXCHANGE INC. AND NGX FINANCIAL INC.
[para 1]
Background
1. In an order dated February 7, 2000 the British Columbia Securities Commission exempted Natural Gas Exchange Inc. and NGX Financial Inc. from sections 34(1)(a) and 59(1) of the Act for trades in exchange contracts;
1.1. Natural Gas Exchange and NGX operate an electronic trading system in Calgary, Alberta for natural gas exchange contracts and related swap contracts by contracting parties; and
1.2. Natural Gas Exchange and NGX have applied for an exemption from section 34(1)(a) and 59(1) of the Act in connection with changes to their business;
[para 2]
Representations
2. Natural Gas Exchange and NGX represent that each contracting party:
2.1.1. has access to enough capacity on the transportation system to meet its delivery obligations under any exchange contracts, and
2.1.2. has a net worth exceeding $5,000,000 or total assets exceeding $25,000,000;
[para 3]
Order
3. Considering that to do so would not be prejudicial to the public interest, it is ordered, effective August 31, 2001, that:
3.1.1. under section 48, trades in exchange contracts and swap contracts by contracting parties through the system operated by Natural Gas Exchange and NGX are exempt from the registration requirement in section 34(1)(a);
3.1.2. under section 60, Natural Gas Exchange and NGX are exempt from the prohibition in section 59(1) against trading exchange contracts on unrecognized exchanges outside B.C.; and
3.1.3. under section 171, the February 7, 2000 order is revoked.
[para 4]
DATED September 18, 2001.
Brent Aitken
Member