Canadian Securities Regulators seek comment on Derivatives Rule Relating to Mandatory Central Counterparty Clearing

Securities CSA

Montréal - Members of the Canadian Securities Administrators (CSA) today published for comment Proposed National Instrument 94-101 Mandatory Central Counterparty Clearing of Derivatives (the Clearing Rule).

The Clearing Rule describes requirements for central counterparty clearing of over-the-counter (OTC) derivatives transactions, and is intended to improve transparency in the derivatives market while enhancing systemic risk mitigation. It was developed following public comments received on CSA Consultation Paper 91-406 OTC Central Counterparty Clearing, published in June 2012, and CSA Notice 91-303 Proposed Model Provincial Rule on Mandatory Central Counterparty Clearing of Derivatives, published in December 2013.

The Clearing Rule is divided into two rule-making areas:

  • the determination of derivatives (each a mandatory clearable derivative) that will be subject to the requirement to submit for central counterparty clearing; and
  • the requirement to submit a transaction in a mandatory clearable derivative to a recognized or exempted central counterparty for clearing (including proposed end-user and intragroup exemptions).

"Achieving greater transparency in the OTC derivatives market is a key component of the post-financial crisis regulatory reform committed to by the Group of Twenty (G20) nations to reduce systemic risk," said Bill Rice, Chair of the CSA and Chair and CEO of the Alberta Securities Commission. "In meeting Canada's commitment to the G20, the CSA intends to establish a nationwide harmonized derivatives clearing regime that is in line with international standards."

For additional information about central counterparty clearing reform in Canada, the public may review the recently published Proposed National Instrument 24-102 Clearing Agency Requirements and the January 2014 publication of CSA Staff Notice 91-304 Model Provincial Rule - Derivatives: Customer Clearing and Protection of Customer Collateral and Positions.

Following this consultation, the CSA will review all comments received and make appropriate amendments to the Clearing Rule. The CSA will then follow established processes to implement the amendments across Canadian provinces and territories.

The Proposed Clearing Rule can be found on CSA members' websites. The comment period is open until May 13th, 2015.

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:

CSA member name

Point of contact

Phone number

Autorité des marchés financiers

Sylvain Théberge

514-940-2176

Alberta Securities Commission

Mark Dickey

403-297-4481

British Columbia Securities Commission

Richard Gilhooley

604-899-6713

Financial and Consumer Affairs, Authority of Saskatchewan

Shannon McMillan

306-798-4160

Financial and Consumer Services Commission, New Brunswick

Andrew Nicholson

506-658-3021

Manitoba Securities Commission

Kevan Hannah

204-945-1513

Northwest Territories Securities Office

Donn MacDougall

867-920-8984

Nova Scotia Securities Commission

Tanya Wiltshire

902-424-8586

Nunavut Securities Office

Louis Arki

867-975-6587

Office of the Superintendent of Securities, Newfoundland and Labrador

Don Boyles

709-729-2594

Office of the Superintendent of Securities, P.E.I.

Janice Callbeck

902-368-6288

Office of the Yukon Superintendent of Securities

Rhonda Horte

867-667-5466

Ontario Securities Commission

Carolyn Shaw-Rimmington

416-593-2361