Stronger market infrastructure framework


Important steps were taken recently to strengthen the framework for market infrastructures, including clearing houses (clearing agencies).

The Canadian Securities Administrators (CSA), of which the AMF is a member, published National Instrument 24-102 respecting Clearing Agency Requirements. This Instrument is intended to incorporate the Principles for Financial Market Infrastructures into the Canadian regulatory framework. CSA members also helped draft supplementary guidance for recognized domestic clearing agencies that are also regulated by the Bank of Canada.

In addition, several CSA members, including the AMF, adopted a Memorandum of Understanding formalizing the manner in which they will cooperate and coordinate their efforts to oversee clearing agencies, trade repositories and matching service utilities.

Both of these initiatives, which the AMF has been actively working on over the past months, are aimed at enhancing observance of the Principles for Financial Market Infrastructures, which were the subject of a recent assessment report This link will open in a new window published by the Bank for International Settlements' Committee on Payments and Market Infrastructure and the Technical Committee of the International Organization of Securities Commissions. They also underscore the commitments made by Canada as part of the G20 by helping to strengthen the safety and efficiency of financial market infrastructures, which include clearing agencies, limit systemic risk and foster financial stability.