The Manitoba Securities Commission

 

Filing Procedures and Minimum Requirements
for Registration as

Dealer (Merchant)

under The Commodity Futures Act.

"Merchant" means a partnership or Firm that is registered under The Commodity Futures Act as a dealer in the merchant registration category [MSC Rule 2000-11, 1.1].

A merchant may, for the merchant’s own account, buy or sell contracts, or both [MSC Rule 2000-11, 2.1(6)].

" Floor Trader" means an individual who is employed by a dealer for the purpose of entering into contracts on a commodity futures exchange on behalf of the dealer [the Act 1(1)].

1. National Registration Database ("NRD") Enrollment:

Firms are required to be enrolled with CDS for the purpose of registering by way of NRD. To obtain information on enrollment, please refer to the NRD website: www.nrd-info.ca; or contact CDS, NRD Administrator help line: 1-800-219-5381. Also, refer to Chapter 3 of the NRD Filer Manual for the NRD forms, fees and other related information that is required to be completed for the purpose of registering with the NRD system.

Once The Manitoba Securities Commission (MSC) has received hard (paper) copies of the required documentation to register the Firm, MSC staff will amend NRD records and notify you. The Firm can then submit the appropriate submissions for the individuals by way of the NRD System.

2.  Application for Registration as a Dealer (Merchant):

File a fully completed and executed Form 5 indicating that the Firm is applying for registration as a Dealer (Merchant) [MSC Rule 2000-11, 3.2(1)]. Submit appropriate fee of $1,000 for registration of the Dealer (Merchant). Cheque is to be made payable to the Minister of Finance.

3. Provide evidence of membership with the Winnipeg Commodity Exchange in the same membership category as the registration category being applied for under the Act [MSC Rule 2000-11, 3.17].

4.  Information Regarding the Dealer/Merchant:

Please submit a brief history of the Dealer/Merchant, also describe the nature of the current business activities.

5.  Application for Registration as a Floor Trader of a Merchant:

a) Application for registration for each Floor Trader must be processed through NRD. Please refer to MSC Notice 2002-46 – Notice of Rule Under the Securities Act and The Commodity Futures Act Multilateral Instrument 33-109 and Companion Policy 33-109 Registration Information (Notice 2002-46 and MI 33-109).

b) A current photograph of each Manitoba resident individual registered as a Floor Trader must be available at the applicant’s place of business.

6. Provide evidence of membership with the Winnipeg Commodity Exchange as a Floor Trader [MSC Rule 2000-11, 3.17].

7. Qualification of Education:

Individuals applying as floor traders shall possess and file evidence of the successful completion of the Floor Brokers Course, administered by The Winnipeg Commodity Exchange [MSC Rule 2000-11, 3.12].

8. Exemptions:

Where the qualification in Item 7 is not met, exemption from this requirement may be granted where the applicant has educational qualifications and experience that are equivalent, and are satisfactory to the Director [MSC Rule 2000-11, 3.15]. Such exemptions are to be filed by way of NRD (apply for an exemption submission).

9. Police Check:

For each resident Floor Trader, please provide a completed Securities Fraud Information Centre Records Request Form. Faxed copies are acceptable, fax no. 204-945-0330.

10. Fees:

The fee for each Floor Trader is $300. Fees will be collected by way of the NRD System.

Copies of The Commodity Futures Act and Regulations may be obtained, at a cost, from:

Statutory Publications
200 Vaughan Street
Winnipeg MB R3C 1T5
Telephone: (204) 945-3101
Fax: (204) 945-7172

If you have any questions regarding this matter, please contact Isilda Tavares, Registration Officer. (Direct Telephone: (204) 945-2560), Fax: (204) 945-0330, or via e-mail: Itavares@gov.mb.ca

Dated: August, 2004