Derivatives market transparency - Two entities seek recognition as trade repositories in Québec


Montréal - In view of the forthcoming implementation of a new regulatory obligation requiring counterparties to an over-the-counter derivatives transaction to report their data to a trade repository, the Autorité des marchés financiers (the "AMF") is notifying market participants that two entities, DTCC Data Repository (U.S.) LLC ("DDR") and ICE Trade Vault, LLC ("ICE TV"), have filed applications for recognition as trade repositories in Québec.

The publication of these applications for recognition is an important step toward reforms sought by the G20 to improve transparency in the OTC derivatives market and effective regulatory oversight. "The AMF has played a leadership role in overseeing the derivatives market since the implementation of the Derivatives Act in 2009. It is pursuing G20 reforms by developing a harmonized framework across Canada that is in line with international standards," said Gilles Leclerc, AMF Superintendent, Securities Markets.

"The recognition of trade repositories and the reporting of data on derivatives traded between two counterparties are keys elements in achieving reforms. The data gathered will enhance the ability to identify and address systemic risk and the risk of market abuse. With the publication of these applications, we are one step closer to the adoption this October 31 of Regulation 91-507 respecting trade repositories and derivatives data reporting, which sets out the obligation to report data to a trade repository," concluded Mr. Leclerc.

The AMF invites interested parties to submit their observations with respect to these applications no later than September 2, 2014. To help ensure a successful transition toward this new reporting regime, the AMF is also pursuing exchanges with local counterparties by asking them to contact one or both of these trade repositories in order to start setting up connectivity procedures. The AMF expects to issue its recognition decisions in September 2014.

DDR and ICE TV have also filed similar applications with the Ontario Securities Commission and the Manitoba Securities Commission.

The Autorité des marchés financiers is the regulatory and oversight body for Québec's financial sector.

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