The BC Securities Commission (BCSC) has signed off, with some reservations, on Maple Group Acquisition Corp.'s proposed acquisition of Canadian stock exchange operator TMX Group Inc.
In issuing its decision, the BCSC again raised its concerns that the large financial institutions that make up the Maple owners might not understand the role of the venture market in Canada or "understand what it takes to make a venture market successful."
"However, in determining what is in the public interest in British Columbia, we recognize that the Ontario Securities Commission, the Québec Autorité des marchés financiers and the federal Competition Bureau have approved the transaction," the BCSC statement reads.
"We have concluded that refusing to recognize TSX Venture [(TSX-V)] to operate as an exchange in British Columbia after the acquisition, or to recognize [Canadian Depository for Securities Ltd.] to operate a clearing agency in British Columbia, would be counterproductive to the continued operation of our markets."
The BCSC has issued orders geared toward mitigating the risks it has identified. Some conditions include:
- 25% of the TMX board must have venture expertise;
- the TSX-V will maintain a Vancouver office with significant roles in the exchange's innovations and development of expertise in the public venture market, maintenance and growth of a competitive Canadian public venture market and development of policy that enhances the competitive position of the exchange; and
- the BCSC will approve any changes to TSX-V rules, fees or other significant changes to its business or operations.
