Omega Securities opposing OSC attempt to shut down its equities trading platform

Bay Street Toronto

Toronto based Omega Securities Inc. has announced that it plans to vigorously oppose a temporary order that is being sought by staff of the
Ontario Securities Commission (“OSC”), Canada’s largest securities regulator, to suspend the registration of, and cease trading of any securities by the company, effective Friday, November 17.

Omega’s trading platforms account for more than 5% of Canadian equities trading.

Sean Debotte Omega Securities

Sean Debotte, Omega Securities

Omega Securities President and CEO Sean Debotte said in a statement:

Omega firmly believes that its trading systems operate with integrity and have offered a valuable service to the market for approximately 10 years, and that its market data is distributed in a fair and orderly fashion.

None of Omega’s market participants are being disadvantaged or treated unfairly in any way whatsoever.

An Omega official said that it is the company’s position that its systems have operated, and continue to operate, within the parameters outlined by the Investment Industry Regulatory Organization of Canada (IIROC), and within the requirements of Canada’s Securities Act and National
Instrument 21-101.

Omega was informed of this proposed temporary order very recently. To date, the company said that it has been fully cooperating with the OSC in a year-long investigation relating to the capture and dissemination of the date and time of trades on Omega’s two alternative trading systems, Omega ATS and Lynx ATS.

The company said that it is very surprised at the severity of the action sought by the OSC, given the lack of any identified adverse effects to the Canadian capital markets, and in fact the almost certain harm to pricing spreads that would result from the OSC’s proposed course of action.

Omega said it strongly opposes the course of action taken by the OSC, which it believes is very unfair, and intends to vigorously oppose these proceedings.

Omega Securities Inc. is the operator of two lit marketplaces: Omega ATS and Lynx ATS. These two marketplaces offer a venue for the facilitation of trading in Canadian listed securities, such as equities and listed fixed income. Omega’s marketplaces account for more than 5 percent of Canadian equities trading and provide a cost-effective and efficient method for the Canadian broker/dealer community to execute transactions on behalf of their clients.

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