Exemption Orders (Discretionary)
ASSET LOGICS INC.
2001 BCSECCOM 1189
ORDER UNDER SECTION 48 OF THE SECURITIES ACT, R.S.B.C. 1996, c. 418
ASSET LOGICS INC.
Background
[para 1]
Asset Logics applied for an exemption from the registration requirement in section 34(1)(a) of the Act to trade in securities and exchange contracts on behalf of StrategicNova Managed Futures Hedge Fund.
Representations
[para 2]
Asset Logics represents that:
1. Asset Logics is a corporation incorporated under the laws of British Columbia and is currently registered as a securities dealer and exchange contracts dealer under the Act;
2. Asset Logics' only client is the Fund and its business consists of acting as the principal broker to the Fund;
3. the Fund is a non-conventional mutual fund that invests in derivatives, including forwards, exchange contracts and options on forwards, and government securities and is managed by Matisse Investment Management Ltd., a Vancouver-based company registered as a portfolio manager under the Act;
5. advice is provided to the Fund solely by Matisse and the commodity trading advisors retained by Matisse to provide advice to the Fund (the CTAs);
6. as Asset Logics is not a member of any exchange, it uses Cargill Investor Services, Inc. as its clearing broker to clear all trades on behalf of the Fund, other than forex trades that are cleared by an affiliate of the clearing broker;
7. the CTAs are required to execute all trades for the Fund through Asset Logics and to clear all trades through Asset Logics' clearing brokers; the CTAs may give instructions directly to the execution specialists and to Asset Logics' clearing brokers but these activities are monitored by Asset Logics; and
8. Asset Logics' dealer activities are limited to dealing with the Fund through Matisse, its CTAs, execution specialists and its clearing brokers, all of whom are sophisticated parties.
Order
[para 3]
Because it is not prejudicial to the public interest, it is ordered under section 48 of the Act that Asset Logics and its employees and officers are exempt from the registration requirement of section 34(1)(a) of the Act in connection with intended trades on behalf of the Fund in securities and exchange contracts.
[para 4]
DATED December 24, 2001.
Gerry Halischuk
Director
Capital Markets Regulation