BCN 2002/36 - Continued recognition of TSX Venture Exchange Inc. following TSX Inc. reorganization [BCN - Rescinded]

On July 26, 2002, each of the Commission and the Alberta Securities Commission (ASC) published the application of the TSX Venture Exchange Inc. (TSX Venture) to revise its recognition order to reflect:

• the TSX Venture’s legal name change from the Canadian Venture Exchange Inc. to TSX Venture Exchange Inc./Bourse de croissance TSX Inc.,
• the legal name change of The Toronto Stock Exchange Inc. to TSX Inc. (TSX),
• the reorganization of TSX, and
• the arrangement by which the TSX Venture has retained Market Regulation Services Inc. as its regulation services provider to provide certain regulatory functions.

The TSX Venture’s application included draft recognition orders continuing the recognition of the TSX Venture in British Columbia and Alberta on revised terms and conditions, and draft joint letters of undertaking from TSX and TSX Group Inc. (TSX Group) to the Commission and to the ASC. No comments were received by the Commission or the ASC on the TSX Venture’s application or on the draft documents included in its application during the publication period.

Recognition order
On September 3, 2002, after the publication period, each of the Commission and the ASC issued new recognition orders of the TSX Venture on the same terms and conditions as were in the draft orders included in its application.

TSX and TSX Group joint letter of undertaking
The TSX Venture is a wholly owned subsidiary of TSX (which in turn is a wholly owned subsidiary of TSX Group). As a result, TSX and TSX Group can control whether the TSX Venture fulfils certain obligations that are imposed, or might otherwise have been imposed without the undertaking, on the TSX Venture by the Commission and the ASC. The Commission and the ASC are relying on the representations, acknowledgements and undertakings set out in the joint letters of undertaking from TSX and TSX Group dated September 3, 2002 in continuing to recognize the TSX Venture.

OSC recognition order of TSX and TSX Group
Under its recognition order of TSX and TSX Group dated September 3, 2002, the Ontario Securities Commission (OSC) requires TSX to maintain sufficient financial and other resources for its operations, and to promptly notify the OSC upon becoming aware that it will be unable to allocate sufficient of those resources to carry out its functions in a manner consistent with the public interest and the terms and conditions of the OSC recognition order. The OSC also requires TSX to meet certain requirements for its order and trading systems and to promptly notify the OSC of material systems failures and changes. The OSC recognition order is published on its website at www.osc.gov.on.ca

OSC letter
In a letter to the Commission and the ASC dated September 3, 2002, the OSC agreed to promptly advise the Commission and the ASC in writing of matters or events that occur in the operations and business of TSX and TSX Group that may impact the operations and business of the TSX Venture and the latter’s recognition by the Commission and the ASC. The OSC has also agreed to promptly provide to the Commission and the ASC any reports provided to the OSC by TSX regarding the results of any tests, reviews or monitoring performed by TSX in connection with its systems.

Publication
The Commission is publishing the following documents together with this notice:

1. its recognition order of the TSX Venture (COR#02/096),
2. the joint letter of undertaking from TSX and TSX Group, and
3. the OSC letter to the Commission and the ASC.

The ASC is publishing a similar notice to this one, together with its recognition order, the joint letter from TSX and TSX Group and the OSC letter, on its website at www.albertasecurities.com

September 13, 2002

Douglas M. Hyndman
Chair

Ref: BCN 2002/32
 COR#02/096

This Notice may refer to other documents. These documents can be found at the B.C. Securities Commission public website at www.bcsc.bc.ca in the Commission Documents database or the Historical Documents database.