BOR 91/08 - The Registration of Persons Trading in TCO Commodity Options [Rescinded]

IN THE MATTER OF THE COMMODITY CONTRACT ACT R.S.B.C. 1979, c. 56 AND

IN THE MATTER OF THE SECURITIES ACT S.B.C. 1985, c. 83 AND

IN THE MATTER OF THE REGISTRATION OF PERSONS TRADING IN TCO COMMODITY OPTIONS

Exemption Order Under Section 29(1)

WHEREAS a commodity option issued by Trans Canada Options Inc. ("TCO") is a commodity contract within the meaning of section 1 of the Commodity Contract Act, R.S.B.C. 1979, c. 56 ("Act");

AND WHEREAS the Vancouver Stock Exchange ("VSE") is a recognized commodity exchange under the Act pursuant to CCA BOR#89/1, an order issued by the British Columbia Securities Commission under section 24(2) of the Act on January 26, 1989;

AND WHEREAS the form of 10 Ounce Gold option issued by TCO ("TCO Option") was accepted for trading on the VSE, effective May 17, 1991, by the Superintendent of Brokers ("Superintendent") under section 24(3) of the Act on August 1, 1991 pursuant to CCA BOR#91/1;

AND WHEREAS section 13(1) of the Act prohibits any person from trading in a commodity contract unless the person is registered as a commodity contracts dealer, a commodity contracts salesman or as a floor trader, or is registered as a partner or as an officer of a registered commodity contracts dealer and is acting on behalf of that commodity contracts dealer;

AND WHEREAS representations have been made to the Superintendent that persons who trade in the TCO Option should be exempt from registration under the Act if they are registered under the Securities Act, S.B.C. 1985, c. 83, and satisfy certain additional requirements;

AND WHEREAS pursuant to section 29(1) of the Act the Superintendent may, on the Superintendent's own initiative, order that a class of persons is not subject to section 13 of the Act;

AND WHEREAS the Superintendent is satisfied that to do so would not be prejudicial to the public interest;

IT IS ORDERED under section 29(1) of the Act, effective May 17, 1991, that a person who trades in the TCO Option is exempt from section 13(1)(a) of the Act provided that

1. if the person is not an individual, the person is registered as a broker or as an investment dealer (a "Dealer") under the Securities Act; or

2. if the person is an individual, the person:

(a) is employed by a Dealer as a floor trader and is recognized as an options attorney under Rule I.1.73 of the VSE; or

(b) is registered under the Securities Act as a salesman, partner, director or officer of a Dealer and has successfully completed the Canadian Options Course prepared and conducted by the Canadian Securities Institute.

DATED at Vancouver, British Columbia, on August 1, 1991.

Wayne Redwick, CGA
Deputy Superintendent of Brokers

REF: BOR#89/1
CCA BOR#89/6
CCA BOR#91/1