On November 13, 2014, each of Aequitas Innovations Inc. and Aequitas Neo Exchange Inc. was recognized as an exchange by the Ontario Securities Commission, effective March 1, 2015. The applications for recognition made by the applicants were originally published by the OSC on June 27, 2014, for a 60-day comment period, during which 60 comment letters were received.
The Aequitas NEO Exchange was formed to promote confidence by putting solutions in place to address the pressing market issues of fairness, liquidity and transparency impacting investor confidence. Specifically, it will have a “speed bump” intended to eliminate the speed advantage of high frequency traders, which will also be subject to higher fees than “longer term” investors. Both equity and debt securities may be listed on the Aequitas NEO Exchange. Separate listing standards have been established for companies, exchange-traded funds, closed-end funds and structured products, to acknowledge the different nature and needs of issuers. The Aequitas NEO Exchange hopes to “go live” on March 13, 2015.