The Commodity Futures Act, C.C.S.M. c. C152 (Assented to November 19, 1996) bilingual version (HTML) Table of Contents Section PART 1 INTERPRETATION AND GENERAL ADMINISTRATION 1 Definitions and interpretation 2 Commission to administer Act 3 Powers and duties of director 4 Secretary 5 Experts PART 2 INVESTIGATIONS 6 Investigation order 7 Financial examination order 8 Power of investigator or examiner 9 Copying, return of records 10 Report of investigation or examination 11 Non–disclosure 12 Order to freeze property 13 Appointment of receiver PART 3 SELF-REGULATORY ORGANIZATIONS, COMMODITY FUTURES EXCHANGES AND CLEARING HOUSES 14 Recognition of self-regulatory organization 15 Registration as exchange 16 Designation of recognized clearing house 17 Commission may review documents and operation of exchange or clearing house 18 Conflict with commodities law 19 Suspension or cancellation of registration or recognition 20 Assignment of powers and duties to exchange or organization 21 Review of decision of exchange or clearing house 22 Records of exchanges and clearing houses 23 Auditor of exchange, organization or clearing house 23.1 Review of self-regulatory organization's decision 23.2 Registering decision in Court of King's Bench PART 4 REGISTRATION FOR TRADING, ACTING AS ADVISER 24 Registration for trading, acting as adviser 25 Designation of employee as non-trading 26 Registration as dealer or adviser 27 Powers of the commission 28 Application after refusal or suspension 29 Application form and fee 30 Director may require additional information 31 Residency requirement 32 Notice of changes 33 Exemption of certain advisers 34 Exemption of certain trades 35 Auditor and filing of financial and other information PART 5 RECOGNITION OF EXTRA-PROVINCIAL COMMODITY FUTURES EXCHANGES 36 Recognition of extra-provincial exchange 37 Revocation of recognition or exemption PART 6 APPROVAL OF CONTRACTS 38 Approval of form of contract by director 39 Revocation of approval PART 7 TRADING GENERALLY 40 Prohibition on certain trades 41 Disclosure statement 42 Information to be provided to customer 43 Margin requirements 44 Written confirmation of trade 45 Statement of purchase and sale; monthly statement 46 Segregation, accounting for money, securities, property 47 Reports 48 Restrictions on trading in contracts 49 Certain representations prohibited 50 Use of name of another registrant 51 Restriction on advertising 52 Registration not to be advertised 53 Holding out by unregistered person 54 Representing approval by commission 55 Director may order copy of advertising PART 8 ENFORCEMENT 56 Prohibitions respecting contracts 57 Prohibition of cross trades 58 Prohibition on front running 59 Prohibition on trading in non-public information 60 Offence and penalty 61 Executing warrant from other jurisdiction 62 Order for compliance 62.1 Registering commission order in Court of King's Bench 63 Limitation period PART 9 GENERAL PROVISIONS 64 Refunds where applications abandoned 65 Admissibility in evidence of certified statements 66 Commission's power to exempt 67 Address for service 68 Filing of material 69 Immunity for acts or omissions in good faith 70 Regulations 71 Commission may make rules 72 Publication of rules 73 Evidence Act 74 Exemption from a regulation or rule 75 Policy statements 76 Commission may vary or revoke its decision PART 10 CONSEQUENTIAL AMENDMENTS, REPEAL, C.C.S.M. REFERENCE AND COMING INTO FORCE 77 Consequential amendments: Securities Act 78 Repeal 79 C.C.S.M. reference 80 Coming into force HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Manitoba, enacts as follows: PART 1 INTERPRETATION AND GENERAL ADMINISTRATION Definitions 1(1) In this Act, "advertising" includes a radio or television commercial, printed or recorded advertisement or promotion, sales literature and all other promotional material generally disseminated, transmitted or made available to the public that furthers or could reasonably be expected to further a trade in a contract; (« publicité ») "adviser" means a person or company engaging in or holding himself, herself or itself out as engaging in, or being held out by a registrant as engaging in, the business of rendering advice as to trading in contracts, and includes a person or company engaging in the publication of newsletters, analyses or reports or broadcasting analyses or reports advising others respecting trading in contracts; (« conseiller ») "associate" means, where used to indicate a relationship with a person or company, (a) another company of which the person or company beneficially owns, directly or indirectly, voting securities carrying more than 10% of the voting rights attached to all voting securities of the company for the time being outstanding, (b) a partner of the person or company, (c) a trust or estate in which the person or company has a substantial beneficial interest or in respect of which the person or company serves as trustee or in a similar capacity, (d) in the case of an individual, (i) a spouse, common-law partner or child of the individual, (ii) a relative of the individual or of his or her spouse or common-law partner, if the relative has the same home as the individual, and for this purpose, "common-law partner" of a particular individual means another individual, who not being married to the particular individual, is cohabiting with him or her in a conjugal relationship of some permanence; (« liens ») "call" means a commodity futures option under which (a) the buyer, upon payment of a premium, obtains the right to assume a long position in a commodity futures contract at a specified strike price before the expiry of the option, and (b) the seller, upon receipt of the premium, assumes the obligation to enter into a short position in the commodity futures contract at the specified strike price before the expiry of the option, in accordance with the terms and conditions of the option; (« option d'achat ») "clearing house" means an association or organization, whether incorporated or unincorporated or part of a commodity futures exchange, through which trades in contracts entered into on a commodity futures exchange are guaranteed, matched or cleared and through which those contracts are settled; (« chambre de compensation ») "commission" means The Manitoba Securities Commission continued under The Securities Act ; (« Commission ») "commodity" means (a) whether in its original or a processed state, an agricultural product, forest product, product of the sea, mineral, metal, hydrocarbon fuel or precious stone or other gem, (b) a currency, index, financial instrument, rate of interest or other financial benchmark, and (c) any good, article or service, right or interest, or a class or combination of them, designated as a commodity under the regulations or the rules; (« marchandise ») "commodity futures contract" means a contract to make or take delivery of a specified quantity and quality, grade or size of a commodity during a specified future month at a price agreed upon by the parties when the contract is entered into on a commodity futures exchange pursuant to standardized terms and conditions set out in the exchange's internal regulations; (« contrat à terme de marchandises ») "commodity futures exchange" means an organization, whether incorporated or unincorporated, operated for the purpose of providing the facilities necessary for the trading of contracts by a competitive bid and offer or by open auction or order matching process utilizing an electronic trading system; (« bourse de contrats à terme de marchandises ») "commodity futures option" means a right acquired for a consideration or an obligation incurred in exchange for a consideration received, to assume a long position or short position in a commodity futures contract at a specified strike price by buying or selling a call or a put that must be exercised within a specified period of time in accordance with the terms and conditions of the option as set out in the internal regulations of the commodity futures exchange upon which the option trades; (« option sur contrat à terme de marchandises ») "company" means a corporation, incorporated association, incorporated syndicate or other incorporated organization; (« compagnie ») "contract" means a commodity futures contract and a commodity futures option; (« contrat ») "dealer" means a person or company that trades in contracts in the capacity of principal or agent; (« courtier ») "decision" , in relation to (a) the commission or the director, means a direction, decision, order, ruling or other requirement made by the commission or the director under this Act, the regulations or the rules, or (b) a self-regulatory organization, means a decision or order made by the self-regulatory organization under a power or duty assigned to it under this Act or the regulations; (« décision ») "delivery" means the completion of a contract by (a) the tender and receipt of the commodity or of an instrument evidencing title to or the right to the commodity pursuant to the procedures established by the commodity futures exchange upon which the contract trades, as set out in the exchange's internal regulations, (b) the payment of the cash equivalent of the underlying interest as set out in the exchange's internal regulations, or (c) the payment of the difference between the price of the commodity on the delivery date and the settlement price of the contract as determined by the exchange, calculated in accordance with the terms and conditions of the contract as set out in the exchange's internal regulations; (« livraison ») "director" means, unless the context otherwise requires, the director or a deputy director of the commission; (« directeur ») "financial institution" means (a) the Government of Canada, the government of a province or territory of Canada, and any Crown corporation, instrumentality or agency of the federal government or of a provincial or territorial government, (b) the Bank of Canada, (c) a company that (i) is a bank to which the Bank Act (Canada) applies, a Quebec savings bank, a trust company registered under Part XVI (Registration of Bodies Corporate) of The Corporations Act , an insurance company licensed under The Insurance Act or the central, a credit union or a caisse populaire under The Credit Unions and Caisses Populaires Act , (ii) has a paid-up capital and surplus of not less than $25,000,000., as stated on its most recent audited balance sheet, and (iii) makes acceptable information with respect to its financial affairs available for inspection by the commission, (d) a Canadian city or municipality having a population of not less than 50,000 people, and any fund under the administration of such a city or municipality, (e) a mutual fund having total net assets of not less than $10,000,000., (f) a corporation, other than a dealer, that (i) has a net worth of not less than $75,000,000., as stated on its most recent audited balance sheet, and (ii) makes acceptable financial information with respect to its business and affairs available for inspection by the commission, or (g) a pension fund of, or administered by, an institution referred to in clause (a), (b), (c) or (f); (« institution financière ») "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; (« négociateur en bourse ») "hedger" means a person or company that carries on agricultural, mining, forestry, processing, manufacturing, importing, exporting, investment, financial or other commercial activities or services and, as a necessary part of the activities or services, becomes exposed to risks attendant upon fluctuations in (a) the price of a commodity that the person or company owns, produces, manufactures, processes, merchandises or anticipates owning, producing, manufacturing, processing or merchandising, (b) the value of liabilities that the person or company owes or anticipates incurring, or (c) the value of services that the person or company provides or purchases or anticipates providing or purchasing, and the person or company offsets the risks by trading in contracts for the commodity or related commodities and the trades are economically appropriate to the reduction of the risks incurred by the person or company in the conduct of the affairs or the operation of the business of the person or company; (« opérateur en couverture ») "hedge trade" means a trade in a contract by a hedger where the trade is economically appropriate to the reduction of the risks incurred or to be incurred by the hedger; (« opération de couverture ») "individual" means a natural person, but does not include an individual in his or her capacity as trustee, executor, administrator or other legal representative; (« particulier ») "internal regulations" means, in relation to a self-regulatory organization, a commodity futures exchange or a clearing house, its by-laws, rules, regulations, and written policies, practices and procedures; (« règlement interne ») "liquidating trade" means (a) in relation to a commodity futures contract, (i) effecting settlement of a long position, by assuming an offsetting short position in a commodity futures contract entered into on the same or a related commodity futures exchange for a like quantity and quality, grade or size of the same commodity deliverable during the same designated future month, and (ii) effecting settlement of a short position, by assuming an offsetting long position in a commodity futures contract entered into on the same or a related commodity futures exchange for a like quantity and quality, grade or size of the same commodity deliverable during the same designated future month, and (b) in relation to a commodity futures option, (i) effecting settlement of a long position in a call or a put, by assuming an offsetting short position in a call or put on the same or a related commodity futures exchange where the underlying interest of the call or put sold is the same commodity futures contract deliverable during the same designated future month, and (ii) effecting settlement of a short position in a call or a put, by assuming an offsetting long position in a call or put on the same or a related commodity futures exchange where the underlying interest of the call or put purchased is the same commodity futures contract deliverable during the same designated future month; (« liquidation ») "local" means an individual who is self-employed for the purpose of entering into contracts on a commodity futures exchange in Manitoba solely for his or her own account; (« négociateur individuel de parquet ») "long position" means, in relation to a commodity futures contract, to be under an obligation to take delivery; (« position acheteur ») "margin" means, in respect of a contract, the minimum dollar amount that, under the internal regulations of the commodity futures exchange on which the contract was entered into, is required to be deposited with a member of the exchange for the purpose of ensuring performance of obligations under the contract, or any greater amount directed by the commission to be so deposited, and includes (a) the original margin or initial margin, being the amount that must be deposited on entering into the contract, and (b) the variation margin or maintenance margin, being the amount that must be deposited during or at the end of a day by a member of the clearing house to restore the margin on deposit to the original margin or initial margin when the margin on deposit falls under the required maintenance level because of adverse movement in the price of the contract; (« marge ») "market participant" means (a) a registrant, a person or company exempted by a decision of the commission from a registration requirement under this Act, a recognized commodity futures exchange, a recognized clearing house and a self-regulatory organization, (b) a general partner of a person or company referred to in clause (a), and (c) any other person or company or member of a class of persons or companies designated by the regulations or the rules; (« participant au marché ») "misrepresentation" means (a) an untrue statement of a material fact, or (b) an omission to state a material fact that is (i) required to be stated, or (ii) necessary to make a statement not misleading in the light of the circumstances in which it was made; (« présentation inexacte des faits ») "officer" means (a) the chairperson or vice-chairperson of the board of directors, the president, vice-president, secretary, assistant secretary, treasurer, assistant treasurer or general manager of a company, (b) an individual designated as an officer of a company by or in accordance with a by-law or similar authority, or (c) an individual acting in a capacity or carrying out the function of an individual referred to in clause (a) or (b); (« dirigeant ») "open commodity futures contract" means a commodity futures contract for which no liquidating trade has been made or for which delivery has not been effected; (« contrat à terme de marchandises en cours ») "open interest" means (a) in relation to commodity futures contracts, the total outstanding long positions or the total outstanding short positions, for each delivery month and in aggregate, in commodity futures contracts relating to a particular commodity entered into on a commodity futures exchange, and (b) in relation to commodity futures options, the total number of outstanding calls and puts, for each delivery month, relating to a particular commodity futures contract entered into on a commodity futures exchange; (« intérêts en cours ») "person" means an individual, partnership, unincorporated association, unincorporated syndicate, unincorporated organization and a trust, trustee, executor, administrator or other legal representative; (« personne ») "premium" means, in relation to a commodity futures option, the consideration that the buyer of the option pays and the seller of the option receives for the rights conveyed to the buyer by the seller; (« prime ») "put" means a commodity futures option under which (a) the buyer, upon payment of a premium, obtains the right to assume a short position in a commodity futures contract at a specified strike price before the expiry of the option, and (b) the seller, upon receipt of the premium, assumes the obligation to enter into a long position in the commodity futures contract at the specified strike price before the expiry of the option, in accordance with the terms and conditions of the option; (« option de vente ») "record" means any correspondence, statement, memorandum, book, plan, drawing, diagram, chart, pictorial or graphic work, photograph, film, microfilm, audio tape, audio-video tape, machine readable record and other documentary material regardless of physical form or characteristics, and any copy or portion thereof; (« document ») "registered" means registered under this Act; (« inscrit ») "registrant" means a person or company registered or required to be registered; (« personne ou compagnie inscrite ») "regulation" means, unless the context otherwise requires, a regulation made under this Act; (« règlement ») "rule" means a rule made under section 71; (« règle ») "sales literature" means a record or any other material, regardless of physical form or characteristics, designed for or used in a presentation to a customer or prospective customer, whether it is given, sent, shown or made available to the customer or prospective customer; (« documentation publicitaire ») "salesperson" means an individual who is employed by a dealer for the purpose of making trades in contracts on behalf of the dealer; (« représentant ») "secretary" means the secretary of the commission and includes an individual designated by the commission to act in the capacity of secretary; (« secrétaire ») "security" has the same meaning as in The Securities Act ; (« valeur mobilière ») "settlement price" means, (a) in relation to a commodity futures contract, the price that is used by a commodity futures exchange or its clearing house to determine, daily, the net gains or losses in the value of open commodity futures contracts, and (b) in relation to a commodity futures option, the price that is used by a commodity futures exchange or its clearing house to determine, daily, the net gains or losses in the value of open puts or open calls; (« cours à terme ») "short position" means, in relation to a commodity futures contract, to be under an obligation to make delivery; (« position vendeur ») "strike price" means, in respect of a commodity futures option, the price at which the purchaser of the option has the right to assume a long position or short position in relation to the commodity futures contract that is the subject of the option; (« prix d'exercice ») "trade" or "trading" includes (a) entering into a contract, whether as principal or agent, (b) offering to enter into a contract, whether as principal or agent, (c) acting as a floor trader or local, (d) a receipt by a registrant of an order to effect a transaction in a contract, (e) an assignment or other disposition of rights under a contract except a disposition arising from the death of an individual, and (f) an act, advertisement, solicitation, conduct or negotiation directly or indirectly in furtherance of an activity or thing referred to in clauses (a) to (e). (« opération ») Related exchanges 1(2) For the purpose of this Act, a commodity futures exchange is related to another commodity futures exchange when the exchanges are parties to a mutual offset trading arrangement. Affiliated company 1(3) For the purpose of this Act, a company is an affiliate of another company if one of them is the subsidiary of the other, or if both are subsidiaries of the same company, or if each of them is controlled by the same person or company. Controlled company 1(4) For the purpose of this Act, a company is controlled by another person or company or by two or more companies if (a) voting securities of the first-mentioned company carrying more than 50% of the votes for the election of directors are held, otherwise than by way of security only, by or for the benefit of the other person, company or companies; and (b) the votes carried by the securities are entitled, if exercised, to elect a majority of the board of directors of the first-mentioned company. Subsidiaries 1(5) For the purpose of this Act, a company is a subsidiary of another company if (a) it is controlled by (i) the other company, (ii) the other company and one or more companies each of which is controlled by the other company, or (iii) two or more companies each of which is controlled by the other company; or (b) it is a subsidiary of a company that is the other company's subsidiary. Beneficial ownership by person 1(6) A person is deemed to beneficially own securities beneficially owned by a company that is controlled by him or her or by an affiliate of the company. Beneficial ownership by company 1(7) A company is deemed to beneficially own securities that are beneficially owned by its affiliates. S.M. 2008, c. 42, s. 9 ; S.M. 2011, c. 35, s. 7 ; S.M. 2018, c. 17, s. 2 ; S.M. 2021, c. 24, s. 115 . Commission to administer Act 2(1) The commission is responsible for the administration of this Act. Hearings 2(2) The commission may hold hearings in or outside Manitoba in conjunction with any other body empowered by statute to administer or regulate trading in contracts and may consult with the other body during the course of a hearing. Powers and duties of commission members 2(3) The chairperson, vice-chairperson or any member of the commission may exercise the powers and shall perform the duties that are vested in or imposed upon the commission by this Act or the regulations, and that are assigned to him or her by the commission. Agreements for assistance 2(4) The commission may enter into agreements with other regulatory authorities for the sharing of information and for assistance in the exercise of its investigative powers under this Act, and the commission may assist another regulatory authority in the exercise of its investigative powers. Powers and duties of director 3 The director may exercise the powers and shall perform the duties that (a) are vested in or imposed upon the director by this Act, the regulations or the rules; or (b) are vested in or imposed upon the commission by this Act or the regulations and assigned to the director by the commission. Secretary 4(1) The secretary may (a) accept service of a notice or other document on behalf of the commission; (b) when authorized by the commission, sign a decision made by the commission; (c) certify under his or her hand a decision made by the commission or a document, record or thing used in respect of a hearing by the commission; and (d) exercise any other power and perform any duty vested in or imposed upon the secretary by this Act, the regulations or the rules or by the commission. Certification by secretary 4(2) A certificate purporting to be signed by the secretary is, without proof of the office or signature certifying, admissible in evidence, so far as it is relevant, for any purpose in an action, proceeding or prosecution. Appointment of experts 5(1) The commission may appoint one or more experts to assist the commission in any manner it considers necessary or advisable. Powers relating to submission to expert 5(2) The commission may submit an agreement, contract, financial statement, report or other document to one or more experts appointed under subsection (1) for examination, and the commission has the power to summon and enforce the attendance of witnesses before the expert and to compel them to produce documents, records and things that is vested in an investigator under subsections 6(3) and (4), which apply with necessary modifications. Payment of experts 5(3) The commission may determine the amounts payable to experts for services and expenses, subject to any limit prescribed by the regulations. PART 2 INVESTIGATIONS Investigation order 6(1) The Commission may, by order, appoint one or more persons to make any investigation it considers necessary or advisable (a) for the due administration of Manitoba commodity futures law or the regulation of the commodity futures markets in Manitoba; or (b) to assist in the due administration of the commodity futures laws or the regulation of the commodity futures markets in another jurisdiction. Contents of order 6(2) An order under this section shall describe the matter to be investigated. Scope of investigation 6(3) A person appointed to make an investigation under this section may investigate and inquire into, (a) the affairs of the person or company in respect of which the investigation is being made, including any trades, communications, negotiations, transactions, investigations, loans, borrowings or payments to, by, on behalf of, or in relation to or connected with the person or company and any property, assets or things owned, acquired or alienated in whole or in part by the person or company or by any other person or company acting on behalf of or as agent for the person or company; and (b) the assets at any time held, the liabilities, debts, undertakings and obligations at any time existing, the financial or other conditions at any time prevailing in or in relation to or in connection with the person or company, and any relationship that may at any time exist or have existed between the person or company and any other person or company by reason of investments, commissions promised, secured or paid, interests held or acquired, the loaning or borrowing of money, stock or other property, the transfer, negotiation or holding of stock, interlocking directorates, common control, undue influence or control or any other relationship. Right to examine 6(4) A person appointed to make an investigation under this section may examine any documents or other things, whether they are in the possession or control of the person or company in respect of which the investigation is ordered or of any other person or company. Financial examination order 7(1) The Commission may, by order, appoint one or more persons to make any examination of the financial affairs of a market participant it considers necessary or advisable, (a) for the due administration of Manitoba commodity futures law or the regulation of the commodity futures markets in Manitoba; or (b) to assist in the due administration of the commodity futures laws or the regulation of the commodity futures markets in another jurisdiction. Contents of order 7(2) An order under subsection (1) shall describe the matter to be examined. Right to examine 7(3) A person appointed to conduct an examination under this section may examine any documents or other things, whether they are in the possession or control of the market participant or any other person or company. Power of investigator or examiner 8(1) A person making an investigation or examination under section 6 or 7 has the same power to summon and enforce the attendance of any person and to compel him or her to testify on oath or otherwise, and to summon and compel any person or company to produce documents and other things, as is vested in the Court of King's Bench for the trial of civil actions, and the refusal of a person to attend or to answer questions or of a person or company to produce such documents or other things as are in his, her or its custody or possession makes the person or company liable to be committed for contempt by the Court of King's Bench as if in breach of an order of that court, and this section applies despite subsection 48(4) (bank and officers when bank not party) of The Manitoba Evidence Act . Rights of witness 8(2) A person or company giving evidence under subsection (1) may be represented by counsel and may claim any privilege to which the person or company is entitled. Inspection 8(3) A person making an investigation or examination under section 6 or 7 may, on production of the order appointing him or her, enter the business premises of any person or company named in the order during business hours and inspect any documents or other things that are used in the business of that person or company and that relate to the matters specified in the order, except those maintained by a lawyer in respect of his or her client's affairs. Authorization to search 8(4) A person making an investigation or examination under section 6 or 7 may apply to a provincial judge in the absence of the public and without notice for an order authorizing the person or persons named in the order to enter and search any building, receptacle or place specified and to seize anything described in the authorization that is found in the building, receptacle or place and to bring it before the judge granting the authorization or another judge to be dealt with by him or her according to law. Grounds 8(5) No authorization shall be granted under subsection (4) unless the judge to whom the application is made is satisfied on information under oath that there are reasonable and probable grounds to believe that there may be in the building, receptacle or place to be searched anything that may reasonably relate to the order made under section 6 or 7. Power to enter, search and seize 8(6) A person named in an order under subsection (4) may, on production of the order, enter any building, receptacle or place specified in the order between 6 a.m. and 9 p.m., search for and seize anything specified in the order, and use as much force as is reasonably necessary for that purpose. Expiration 8(7) Every order under subsection (4) shall name the date that it expires, and the date shall be not later than fifteen days after the order is granted. Copying 9(1) Any thing seized or produced under this Part shall be made available for inspection and copying by the person or company from which it was obtained, if practicable. Return 9(2) Any thing seized or produced under this Part shall be returned to the person or company from which it was obtained when, (a) retention is no longer necessary for the purposes of an investigation, examination, proceeding or prosecution; or (b) the commission so orders. Report of investigation or examination 10(1) A person appointed under subsection 6(1) or 7(1) shall, at the request of the chairperson of the commission or of a member of the commission involved in making the appointment, provide a report to the chairperson or member, as the case may be, or any testimony given and any documents or other things obtained under section 8. Report privileged 10(2) A report provided under this section is privileged. Non-disclosure 11 No person or company shall disclose at any time, except to his, her or its counsel, (a) the nature or content of an order under section 6 or 7; or (b) the name of any person examined or sought to be examined under section 8, any testimony given under section 8, any information obtained under section 8, the nature or content of any questions asked under section 8, the nature or content of any demands for the production of any document or other thing under section 8, or the fact that any document or other thing was produced under section 8. Interim preservation of property 12(1) If the commission considers it necessary or advisable (a) for the due administration of Manitoba commodity futures law or the regulation of the commodity futures markets in Manitoba; or (b) to assist in the due administration of the commodity futures laws or the regulation of the commodity futures markets in another jurisdiction; it may in writing direct a person or company having on deposit or under its control or for safekeeping any funds, securities or property of any person or company to retain those funds, securities or property and to hold them until the commission in writing revokes the direction or consents to release a particular fund, security or property from the direction. Application to branches of financial institution 12(2) A direction under subsection (1) that names a bank or other financial institution shall apply only to the branches of the bank or other financial institution identified in the direction. Exclusions 12(3) A direction under subsection (1) shall not apply to funds, securities or property in the clearing house of a commodity futures exchange or stock exchange or to securities in process of transfer by a transfer agent unless the direction so states. Clarification, variation or revocation 12(4) A person or company directly affected by a direction under subsection (1) may apply to the commission for clarification or to have the direction varied or revoked. Registration against land 12(5) If property identified in a direction under subsection (1) includes an interest in land, the commission may authorize the director to issue a certificate in respect of the land and request registration of the certificate in the land titles office for the land titles district in which the land is situated, and the certificate when so registered shall have the same effect as, and the registration of it may be discharged in the same manner as, a certificate of pending litigation in respect of the land. Application for appointment of receiver 13(1) The commission may, where it considers it necessary or advisable for the proper administration of this Act, the regulations or the rules, apply to a judge of the Court of King's Bench for the appointment of a receiver, receiver and manager, trustee or liquidator in respect of all or any part of the property of a person or company. Appointment 13(2) Upon an application made under subsection (1), the judge may, if he or she considers it necessary or advisable for the proper administration of this Act, the regulations or the rules, by order appoint a receiver, receiver and manager, trustee or liquidator of any or all of the property of a person or company. Application without notice 13(3) The judge may make an order under subsection (2) on an application without notice, but the period of appointment shall not exceed 15 days. Powers of receiver 13(4) In making an appointment under subsection (2) in respect of property of a person or company, the judge may authorize the appointee (a) to act as receiver, receiver and manager, trustee or liquidator of, in addition to property of the person or company, all or any property held by the person or company on behalf of or in trust for another person or company; and (b) to wind up or manage the business and affairs of the person or company. Costs of application 13(5) The commission's costs related to an application under this section shall be paid out of the assets of the person or company in respect of which an appointment is made. PART 3 SELF-REGULATORY ORGANIZATIONS, COMMODITY FUTURES EXCHANGES AND CLEARING HOUSES Recognition of self-regulatory organization 14(1) The commission may recognize in writing an organization, whether incorporated or unincorporated, representing registrants as a self-regulatory organization if the commission considers that it is in the public interest to do so and that the organization is in compliance with this Act, the regulations and the rules and is able to continue to be in compliance. Hearing 14(2) The commission shall not refuse to recognize an organization as a self-regulatory organization without giving the applicant an opportunity to be heard. Recognized organization to regulate members 14(3) A self-regulatory organization recognized under subsection (1) shall, subject to this Act, the regulations, the rules and the decisions of the commission and of the director, regulate the standards and business conduct of its members. Commission's powers 14(4) If the commission considers it in the public interest to do so, it may make a decision in respect of (a) an internal regulation or proposed internal regulation of a self-regulatory organization; or (b) a direction, decision, order or ruling made under an internal regulation of the organization. Requirement to register as exchange 15(1) No person or company shall carry on business as a commodity futures exchange in Manitoba unless it is registered as a commodity futures exchange under this Part. Registration 15(2) Upon application by or on behalf of a person or company wishing to carry on business in Manitoba as a commodity futures exchange, the commission shall grant registration to the person or company where it is satisfied that to do so would not be prejudicial to the public interest, taking into account whether (a) the clearing arrangements and the financial condition of the exchange, its clearing house and members provide reasonable assurance that all obligations arising out of contracts entered into on the exchange will be met; (b) the internal regulations of the exchange that govern its members and members of its clearing house are in the public interest and are actively enforced; (c) floor trading practices are fair and effectively supervised; (d) adequate measures are taken to prevent manipulation and excessive speculation; (e) adequate provision is made to record and publish details of trading, including volume and open interest; and (f) the exchange is in compliance with this Act, the regulations and the rules and is able to continue to be in compliance. Hearing 15(3) The commission shall not refuse to grant registration to a commodity futures exchange without giving the applicant an opportunity to be heard. Designation of recognized clearing house 16(1) Upon the application of a person or company carrying on or proposing to carry on the business of a clearing house for a commodity futures exchange registered under section 15, the commission may designate in writing the person or company as a recognized clearing house where the commission is satisfied that to do so would be in the public interest and that the person or company can comply with this Act, the regulations, the rules and any term or condition imposed by the commission in respect of the designation. Hearing 16(2) The commission shall not refuse to make a designation under subsection (1) without giving the applicant an opportunity to be heard. Requirement to file documents 17(1) Every registered commodity futures exchange and every recognized clearing house shall file with the commission a copy of every constating document, general agreement or other document governing its members, internal regulation and every amendment to them, without delay and in any event not later than five days after the day on which the document or amendment is approved by the board of directors of the exchange and, where membership approval is required, before approval by its membership. Commission may review filed document 17(2) The commission may review a document filed under subsection (1) and, if it considers it in the public interest to do so, make a decision respecting the document, including suspending its operation or requiring an amendment to it. Additional powers 17(3) The commission may review the operation of a commodity futures exchange or its clearing house and, if it considers it in the public interest to do so, make an order (a) respecting the manner in which the exchange or clearing house carries on business; (b) in the case of an exchange, (i) respecting trading on or through the facilities of the exchange, including the setting of levels of margin, daily price limits, daily trading limits and position limits, or (ii) requiring the liquidation of or suspension of trading in a contract or any other action the commission considers necessary or advisable to maintain or restore orderly trading in a contract; and (c) in the case of a clearing house, requiring it to liquidate a contract, suspend its operations or take any action the commission considers necessary or advisable to maintain or restore orderly trading in a contract. Conflict with commodities law 18 No internal regulation of a self-regulatory organization, a registered commodity futures exchange or a recognized clearing house shall conflict with this Act, the regulations or the rules, but any of them may impose additional requirements within its jurisdiction. Suspension or cancellation of registration or recognition 19(1) If the commission, after giving a self-regulatory organization, a commodity futures exchange or a recognized clearing house an opportunity to be heard, considers it in the public interest to do so, it may reprimand the organization, exchange or clearing house or suspend, cancel, restrict or impose terms and conditions upon its registration, recognition or designation under this Part. Temporary order without hearing 19(2) Despite subsection (1), if the commission considers that the delay required for a hearing would be prejudicial to the public interest, it may make an order under that subsection without prior notice to the organization, exchange or clearing house, but the order is effective for not more than 15 days. S.M. 2011, c. 35, s. 7 . Assignment of powers and duties by commission 20(1) The commission may, on any terms and conditions it considers advisable, assign to a registered commodity futures exchange or a self-regulatory organization any power or duty of the commission under Part 4 (Registration for Trading, Acting as Adviser) or the regulations or rules relating to that Part. Assignment of powers and duties by director 20(2) The director may, with the approval of the commission which may be given on any terms and conditions it considers advisable, assign to a registered commodity futures exchange or a self-regulatory organization any power or duty of the director under Part 4 (Registration for Trading, Acting as Adviser) or the regulations or the rules relating to that Part. Variation or revocation of assignment 20(3) The commission or, with the commission's approval, the director may at any time vary or revoke, in whole or in part, an assignment of powers and duties made under this section. Review of decision of exchange or clearing house 21 A person or company affected by a direction, order or other decision made under an internal regulation of a registered commodity futures exchange or a recognized clearing house may, within 30 days after the decision is made, apply to the commission for a hearing to review the matter and Part IV (Appeals) of The Securities Act applies to the application and hearing, with necessary modifications, as if the decision were a decision of the director. S.M. 2018, c. 17, s. 3 . Records of exchanges and clearing houses 22(1) Each registered commodity futures exchange in Manitoba and its clearing house shall keep all records necessary for the proper recording of each transaction on the exchange and shall deliver to the commission, at such time or times as the commission requires and in a form acceptable to the commission, reports respecting transactions on the exchange. Particulars of transactions 22(2) Every registered commodity futures exchange shall supply to any customer of a member of the exchange, upon production of a written confirmation of a transaction with the member, particulars of the transaction, including the time at which it took place and the matters set out in the confirmation. Auditor of exchange, clearing house or self-regulatory organization 23(1) Every registered commodity futures exchange, recognized clearing house and self-regulatory organization shall appoint an auditor for itself. Auditor of member 23(2) Every registered commodity futures exchange and every self-regulatory organization shall (a) select a panel of auditing firms for its members; and (b) cause each of its members to appoint an auditor from that panel. Examination and report 23(3) The auditor of a member of a registered commodity futures exchange or self-regulatory organization shall examine, in accordance with generally accepted auditing standards, the annual financial statements and the regulatory filings of the member required by the internal regulations applicable to the member, and shall report the results of the examination in accordance with professional reporting standards to the exchange or organization. Review of self-regulatory organization's decision 23.1(1) Any person or company affected by a decision of a self-regulatory organization may, within 30 days after the decision is made, apply to the commission for a hearing to review the decision. On receiving the application, the commission has discretion whether to review the decision. Application of Securities Act 23.1(2) If the commission decides to review the decision, Part IV (Appeals) of The Securities Act applies, with necessary modifications, to the review as if the decision were a decision of the director. Rights of enforcement staff 23.1(3) If the decision of a self-regulatory organization relates to an investigation or disciplinary proceeding conducted by that organization, the organization's staff that conducted the investigation or initiated or conducted the disciplinary proceeding (a) is deemed to be affected by the decision; and (b) may apply under subsection (1) to have the commission review the decision. S.M. 2018, c. 17, s. 4 .
