The Ontario Securities Commission granted Arrow Capital Management Inc. relief from sections 6.8(1) and 6.8(2)(c) of National Instrument 81-102 (NI 81-102), which limit the amount of portfolio assets an investment fund can deposit as margin for derivatives transactions. The relief allows the WaveFront Global Diversified Investment Fund and other funds managed by Arrow to deposit up to 35% of their net asset value (NAV) with any single dealer and up to 70% of their NAV in aggregate with all dealers for specified derivatives transactions. This decision facilitates more efficient and flexible investment strategies while reducing operational complexity and costs. The relief is subject to conditions ensuring that the funds only use the margin for exchange-traded specified derivatives and adhere to the specified limits. The decision is based on the representations made by Arrow and is deemed not prejudicial to the public interest. Relevant regulations include NI 81-102 and Multilateral Instrument 11-102.
