As we discussed in a recent post, Ontario's recently-proposed budget bill would amend the Securities Act to tighten up provisions respecting insider trading. In respect of commodities, section 59.1 of the Commodity Futures Act currently prohibits persons and companies from engaging in conduct that the person or company knows or reasonably ought to know (i) results in or contributes to a misleading appearance of trading activity in, or an artificial price for, a commodity or contract; or (ii) perpetrates a fraud on any person or company.
Under the budget bill, a provision would be added to the section to also prohibit attempts to engage in such conduct. The bill is currently being considered by the Ontario legislature.
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