TORONTO, Oct. 3 /CNW/ - The Ontario Securities Commission (OSC) today
issued an Order under Section 127 of the Securities Act extending until
11:59 p.m. on Wednesday, October 8, 2008 its amended Temporary Order
prohibiting short selling of certain financial sector issuers. The expiry of
the Order is consistent with the expiry of the SEC order referred to below.
Panel Chair Lawrence Ritchie, in his oral reasons, said "... to avoid
regulatory arbitrage with respect to the short selling in Ontario of the
common equity securities of those financial institutions affected by the SEC
short sale orders, we find that it is in the public interest to grant the
extension as requested..."
The original Temporary Order under Section 127 (5) of the Act prohibiting
short selling of securities of certain financial sector issuers that are
listed on the Toronto Stock Exchange (TSX) and are also interlisted in the
United States (with the exception of one issuer whose shares are exchangeable)
was made on September 19, 2008.
The original Temporary Order was issued as a precautionary matter with
respect to short selling of the securities of financial sector issuers,
trading in Ontario, that were subject to the U.S. Securities and Exchange
Commission (SEC) short selling order dated September 18, 2008. This helped to
ensure that our markets are not used for purposes of regulatory arbitrage. The
original Temporary order was amended on September 22, 2008.
The OSC's action supports action taken by the SEC, whereby it extended
its short selling order on October 2, 2008. The OSC's Extension Order also
provides clarification on technical and operational issues that have arisen
from the original and amended Orders.
On October 3, 2008 the President of the United States signed into law the
Emergency Economic Stabilization Act of 2008 and, therefore, the SEC's order
will terminate on the third business day thereafter, being October 8, 2008 at
11:59 p.m. The OSC Extension Order expires on that day and time.
The OSC is acting in its capacity as lead regulator of the TSX.
The OSC is a member of the Canadian Securities Administrators (CSA),
which is the council of the securities regulators of Canada's provinces and
territories. Other CSA members are examining the Extension Order and may issue
similar Orders in the coming days.
The issuers subject to the Extension Order are: Bank of Montreal, The
Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Fairfax Financial
Holdings Limited, Kingsway Financial Services Inc., Manulife Financial
Corporation, Quest Capital Corp., Royal Bank of Canada, Sun Life Financial
Inc., Thomas Weisel Partners Group Inc., The Toronto-Dominion Bank, and
Merrill Lynch & Co., Canada Ltd. Aberdeen Asia-Pacific Income Investment
Company Ltd. has been removed from the list of issuers subject to the
Extension Order as it is not interlisted in the U.S.
The Extension Order is available on the OSC website at www.osc.gov.on.ca.
For further information:
For further information: For Media Inquiries: Wendy Dey, Director,
Communications & Public Affairs, (416) 593-8120; Laurie Gillett, Manager,
Public Affairs, (416) 595-8913; Carolyn Shaw-Rimmington, Assistant Manager,
Public Affairs, (416) 593-2361; For Investor Inquiries: OSC Contact Centre,
(416) 593-8314, 1-877-785-1555 (Toll Free)