Canadian Securities Regulators propose harmonized approach to clearing agency requirements


Toronto - The Canadian Securities Administrators (CSA) today published for comment Proposed National Instrument 24-102 Clearing Agency Requirements, which adopts international standards for Canadian financial market infrastructures (FMIs). The comment period closes on February 10, 2015.

These standards were first published internationally as the Principles for Financial Market Infrastructures (PFMIs) by the then Committee on Payment and Settlement Systems (now Committee on Payments and Market Infrastructure) and the Technical Committee of the International Organization of Securities Commissions in 2012, to raise and harmonize the international standards for payment, clearing, deposit, reporting and settlement systems. FMIs include clearing agencies serving both securities and derivatives markets under securities legislation.

"It is critical that Canadian financial infrastructures maintain the highest standards in today's increasingly interconnected capital markets," said Bill Rice, Chair of the CSA and Chair and Chief Executive Officer of the Alberta Securities Commission. "This proposal brings a harmonized approach to clearing agency requirements in Canada and aligns them with international best practices."

In addition to adopting the PFMIs as ongoing requirements for recognized clearing agencies in the jurisdictions of Canada, the proposed instrument formalizes a framework for the recognition or exemption of clearing agencies seeking to carry on business in jurisdictions of Canada. The proposal takes into account comments received from stakeholders on proposed Local Rule 24-503 that was published in December 2013 in Manitoba, Ontario and Québec, and Multilateral Staff Notice 24-309 that was published at the same time in British Columbia, Alberta, Saskatchewan, New Brunswick and Nova Scotia.

The CSA, together with the Bank of Canada, has also developed supplementary guidance to clarify certain aspects of the PFMIs in the Canadian context. This supplementary guidance is included in the companion policy to the proposed instrument. The CSA and Bank of Canada will continue to work together to develop further guidance with respect to the PFMIs, as necessary.

CSA NI 24-102 is available on CSA members' websites.

The CSA, the council of the securities regulators of Canada's provinces and territories, co-ordinates and harmonizes regulation for the Canadian capital markets.

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For more information:

Carolyn Shaw-Rimmington
Ontario Securities Commission

Mark Dickey
Alberta Securities Commission

Richard Gilhooley
British Columbia Securities Commission

Sylvain Théberge
Autorité des marchés financiers

Kevan Hannah
Manitoba Securities Commission

Andrew Nicholson
Financial and Consumer Services Commission
New Brunswick

Tanya Wiltshire
Nova Scotia Securities Commission

Janice Callbeck
Government of Prince Edward Island,
Superintendent of Securities

Don Boyles
Office of the Superintendent of Securities
Service Newfoundland and Labrador

Rhonda Horte
Office of the Yukon Superintendent
of Securities

Louis Arki
Nunavut Securities Office

Gary MacDougall
Office of the Superintendent of Securities
Northwest Territories

Shannon McMillan
Financial and Consumer Affairs
Authority of Saskatchewan