Trading in an exchange contract on an exchange outside New Brunswick
2008, c.22, s.38
70.2(1)No registrant shall trade in an exchange contract on behalf of another person on an exchange outside New Brunswick unless the exchange is recognized by the Commission under this section.
70.2(2)On receipt of the application of an exchange outside New Brunswick, the Commission may make an order recognizing the exchange for the purposes of subsection (1) if the Commission is satisfied that to do so would not be prejudicial to the public interest.
70.2(3)In deciding whether to make an order under subsection (2), the Commission shall consider whether
(a)
the clearing and other arrangements made and the financial condition of the exchange, its clearing agency and their members or participants are sufficient to provide reasonable assurance that all obligations arising out of the contracts entered into on the exchange and the obligations of the exchange’s members or participants to their customers will be met,
(b)
the regulations or other regulatory instruments or practices or policies applicable to the exchange’s members or participants and its clearing agency’s members or participants are in the public interest and are actively enforced,
(c)
floor trading practices are fair and properly supervised,
(d)
adequate measures are taken to prevent manipulation and excessive speculation, and
(e)
adequate provision is made to record and publish details of trading, including volume and open interests.
70.2(4) A recognition under this section shall be made in writing and shall be subject to such terms and conditions as the Commission considers appropriate.
70.2(5)The Commission shall not refuse to recognize an exchange outside New Brunswick for the purposes of subsection (1) without giving the exchange an opportunity to have a hearing before the Commission.
70.2(6)In the case of an exchange in the United States of America that is designated by the Commodity Futures Trading Commission as a contract market, the Commission may accept that designation as constituting, while it remains in force, sufficient proof that the exchange complies with paragraphs (3)(a) to (e).
70.2(7)The Commission may, after a hearing, withdraw its recognition of an exchange if, in its opinion
(a)
the exchange is no longer complying with paragraphs (3)(a) to (e), or
(b)
it would for any other reason be prejudicial to the public interest to continue to recognize the exchange.