Regulation of Derivatives Markets - AMF publishing derivatives framework proposal documents


Montréal – The Autorité des marchés financiers (AMF) is today publishing for comment a proposed framework for the regulation of derivatives markets in Québec. The proposal documents contain a proposed legislation and regulation as well as proposed policy statements in respect of derivatives.

This AMF initiative is further to the publication of a discussion paper in May 2006 on the regulation of derivatives markets containing the AMF’s broad orientations for the development of a derivatives regulatory framework. Prepared by a group of analysts specializing in various operating aspects within the AMF and submitted to an advisory committee made up of industry representatives, the discussion paper generated numerous comments and observations that have been taken into account in the proposed framework. The approach adopted in the proposed framework consists of fostering the development of core principles in legislation and complementing the framework with regulatory provisions or policy statements. In addition to providing the flexibility needed to respond promptly and adapt the framework to market changes, this approach allows various market participants to operate within the framework in a manner that is more in line with their business model, thereby sustaining an environment that is conducive to innovation and competition. As well, the AMF has ensured that its proposals are compatible with international standards, while recognizing the realities of the Canadian and North American markets.

Following the consultation, the AMF intends to pursue its task, taking into account the comments it receives, and prepare recommendations for the Minister of Finance for the purpose of implementing a modern and effective regulatory framework for derivatives markets in Québec. The final result of this initiative by the AMF may be implemented only after it has been submitted to the regulatory and legislative process of the Government and the National Assembly.

The Notice and Request for Comment as well as the proposal documents containing the proposed legislation, regulation and policy statements are available on the AMF website.

Comments on the proposed derivatives framework should be made in writing before the 90-day publication period expires on November 8, 2007 and sent to:

Me Anne-Marie Beaudoin
Corporate Secretary
Autorité des marchés financiers
800, square Victoria, 22e étage
C. P. 246, tour de la Bourse
Montréal (Québec) H4Z 1G3
Fax: (514) 864-6381
E-mail: [email protected]

The Autorité des marchés financiers (AMF) is the regulatory and oversight body for Québec’s financial sector.

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