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Accelerate Financial Technologies Inc.

2021-08-24 | Decision | | Investment funds and structured products | https://www.osc.ca/en/securities-law/orders-rulings-decisions/accelerate-financial-technologies-inc-1

National Instrument 81-102 Investment Funds, ss. 6.8(1), 6.8(2)(c) and 19.1.


The Securities Commission granted an exemption to an investment fund, allowing it to exceed the standard margin deposit limits for investing in specified futures. The fund is permitted to deposit up to 35% of its net assets with any single futures commission merchant in Canada or the United States, and up to 70% in total with all such merchants. This exemption is conditional on the fund’s compliance with the requirement that all margin deposits be held in segregated accounts, inaccessible to creditors of the dealers.

This decision is based on National Instrument 81-102 Investment Funds, specifically subsections 6.8(1) and 6.8(2)(c), which typically restrict margin deposits to 10% of a fund’s net asset value. The exemption was granted under the authority of section 19.1 of the same instrument.

The fund, managed by Accelerate Financial Technologies Inc., aims to provide exposure to bitcoin performance through derivatives and intends to offset the carbon footprint associated with its bitcoin exposure. The exemption will enable the fund to pursue its investment strategies more efficiently and cost-effectively, while maintaining robust risk management and compliance practices.