VANCOUVER, July 11, 2012 /CNW/ - The British Columbia Securities
Commission today published its final notice regarding the application
by Maple Group Acquisition Corporation. The BCSC focused on the impact
that Maple's acquisition of the TMX Group Inc, and the Canadian
Depository for Securities Limited and the CDS Clearing and Depository
Services (jointly known as CDS) will have on the Canadian venture
"The TSX-Venture is a vital means for venture companies to raise capital
and engage in early stage business development, including resource
exploration. Any changes to the TSX-V's ownership, governance or
operations warrant close regulatory scrutiny," said BCSC Chair Brenda
The BCSC published its second notice and request for comment on May 24,
2012. In it, the commission identified four major risks that relate to
the Canadian venture market. Since then, the BCSC has received nine
letters in response to its request for comment. All expressed serious
concerns about the impact Maple's transactions will have on the venture
market, and on the viability of the smaller independent dealers that
support financing for early stage businesses.
"After extensive consultations with venture market participants over the
past year, we are issuing orders with conditions aimed at mitigating
those risks - both to the Canadian public venture market and to
independent dealers," said Leong.
Highlights of BCSC's conditions:
25% of TMX board must have "venture" expertise;
The TSX-V will maintain an office in Vancouver that has a significant
role in the Exchange's
development of expertise in the public venture market,
the maintenance and growth of a competitive Canadian public venture
innovations in the public venture market, and
development of policy that enhances the competitive position of the
BCSC approval of any changes to TSX-V rules, fees, or any other
significant changes to its business or operations;
The TSX-V national advisory committee must have reporting obligations to
TMX board and BCSC;
At least two directors on the CDS board representing independent
BCSC approval of all changes to access, fees, capital and collateral
requirements, the risk model and membership criteria for CDS.
One independent dealer on the CDS board Risk Management and Audit
Committee and one independent dealer on each of the strategic
development, risk advisory and fee marketplace advisory committees.
There is over 1100 B.C.-based venture companies, which represent about
50% of those listed on the TSX-V. B.C.'s share is $21.4 billion, 44% of
total market capitalization. Mining remains the most important industry
for B.C. companies, followed by technology and oil and gas.
The B.C. Securities Commission is the independent provincial agency
responsible for regulating trading in securities within the province.
SOURCE British Columbia Securities Commission
For further information:
For media inquiries, contact Richard Gilhooley, media relations, 604-899-6713. For public inquiries, call 604 899 6854 or 1 800 373 6393 (toll free).