1.1 Background - The Registration Transfer Rules delegate registration functions under the Securities Act to the Vancouver Stock Exchange ("VSE") and the Pacific District of the Investment Dealers Association of Canada ("IDA") (collectively "designated organizations") for certain categories of dealers, including brokers and investment dealers. Section 3 (3) of the Registration Transfer Rules prohibits a person that has applied to one designated organization for registration or renewal, reinstatement or amendment of registration from applying to the other designated organization, without the written consent of the Executive Director. Section 3 (5) of the Registration Transfer Rules requires applicants for registration or renewal of registration as a salesperson who are to be restricted to trading through the trading systems of the Canadian Venture Exchange Inc. ("CDNX"), the successor organization to both the VSE and the Alberta Stock Exchange) to apply to CDNX.

1.2 Purpose - CDNX will be transferring member regulation functions to the IDA. As a result, registrants wishing to trade on CDNX will be required to register with the Pacific District of the IDA. The purpose of Blanket Order 31-501 is to enable a broker, or a person applying for registration as a broker, to apply for registration with the IDA and to eliminate the requirement for salespersons who are to be restricted to trading through the trading systems of CDNX to apply to CDNX for registration.