An information memorandum and ballot materials will be sent out to all members on January 22, 2001. Votes must be cast no later than 3:00 p.m. CT Tuesday, February 20, 2001. An affirmative vote of 66 2/3% of the ballots returned is required for ratification.
Subject to member approval, the restructuring proposal would see the current WCE become a federal for-profit share corporation with all equity owned by WCE Holdco, a for-profit corporation. The proposal further provides for an equal allocation of shares in return for each membership seat held. Trading privileges in WCE products will be based on a contractual relationship between the trading participant and the Exchange.
WCE President and CEO, Bennett J. Corn said, “With the futures industry undergoing substantial changes, demutualization is an essential step for WCE moving forward. This ever-changing environment is demanding that exchanges have the corporate structure to be flexible and act quickly.”
WCE demutualization is contingent upon regulatory approvals and legislative amendments, which are anticipated to be completed within a 4-to-6 month period.
WCE trades futures contracts in: canola, western barley, flaxseed, oats, feed wheat and field peas; and options contracts in: canola, flaxseed, feed wheat and western barley. Established in 1887, Winnipeg Commodity Exchange is a not-for-profit organization providing financial instruments for price discovery and the transference of risk in an efficient and open manner.
