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Securities Law

NIN 96/19 - Expiry of Transitional Market-making Relief for Control Persons [NIN - Rescinded]

Published Date: 1996-06-21
Effective Date: 1996-06-20
In its Weekly Summary of December 15, 1995, the Commission issued a Notice (NIN#95/54) indicating that, following the elimination of the market-making exemption under section 117(e) of the Securities Regulation, B.C. Reg. 270/86, on January 1, 1996, the Commission would provide transitional market-making relief until it could determine whether there was an appropriate alternative. The transitional relief provided certain resale relief to control persons for 'market-making' purposes provided the control person establishes and the issuer publicly discloses a discretionary market-making account in accordance with certain specified Vancouver Stock Exchange Rules. A Blanket Order (BOR#95/7) was published concurrently setting out the specific relief, which expires June 30, 1996.

In NIN#95/54, the Commission indicated that while it had "heard considerable support for the continuation of such an exemption, it has not yet received submissions that provided the evidence or compelling arguments to demonstrate the exemption is necessary or, ultimately, workable." The Commission requested comments over the next six months on whether a market-making exemption should be continued beyond the transitional period.

The Commission has received very few comments regarding the BOR and has been advised by staff of the Exchange that the exemption under the BOR has not been widely used. The Commission received no evidence or arguments to demonstrate that an exemption, either in the form set out in the BOR or in a modified form, is either necessary or indeed workable.

Accordingly, the BOR will expire in accordance with its terms on June 30, 1996.

DATED at Vancouver, British Columbia, on June 20, 1996.

Joyce C. Maykut, Q.C.
Vice Chair