The purpose of Regulation 91-507 respecting Trade Repositories and Derivatives Data Reporting ("Regulation 91-507") is to improve transparency in the derivatives markets and to ensure that recognized trade repositories operate in a manner that promotes public interest. Derivatives data are essential for effective regulatory oversight of the derivatives markets, including the ability to identify and address systemic risk and market abuse. Derivatives data reported to recognized trade repositories will also support policy-making by providing regulators with information on the nature and characteristics of the Canadian derivatives markets.
Amendments to Regulation 91-507
On June 4th 2015, the Authority published Decision n° 2015-PDG-0089 (pdf - 59 KB)This link will open in a new window. The purpose of the decision is to defer to a future date, under certain conditions, the implementation of the duty to report under subsection (1) of section 26 of Regulation 91-507, for a reporting counterparty that is neither a reporting clearing house, nor a person subject to the registration requirement as a dealer under the Derivatives Act, nor a Canadian financial institution and is a party to an intragroup transaction (see Section 6.10 of AMF Bulletin, June 4 2015, Vol. 12, no 22 ).
On February 12th 2015, the Authority published Decision n° 2015-PDG-0022 (pdf - 18 KB)This link will open in a new window. The purpose of this decision is to defer to July 29th, 2016, the implementation of the requirement for a trade repository to publicly disclose information pertaining to each transaction reported under (see Section 6.10 of AMF Bulletin, February 12 2015, Vol. 12, no 6).
On October 30th 2014, the Authority published the final version of the Regulation to amend Regulation 91-507 respecting Trade Repositories and Derivatives Data Reporting (see Section 6.2 of AMF Bulletin, October 30, 2014, Vol. 11, no 43).
In this bulletin, the Authority also published:
- The Amendments to Policy Statement to Regulation 91-507 respecting Trade Repositories and Derivatives Data Reporting;
- Décision n° 2014-PDG-0109 relative à la législation équivalent en matière de déclaration des opérations dans un territoire étranger visée au paragraphe 5) de l’article 26 du Règlement 91-507 sur les référentiels centraux et la déclaration de données sur les dérivés (see Equivalent Trade Reporting Laws of Foreign Jurisdictions Subject to Deemed Compliance Pursuant to Subsection 26(5) of Regulation 91-507);
- Décision n° 2014-PDG-0124 relative à la révocation des décisions générales numéros 2014-PDG-0051 et 2014-PDG-0084.
Legal Entity Identifiers
Legal Entity Identifiers (“LEIs”) will play a central role in the reporting of data to trade repositories, but also for aggregating such data.
The LEI is a 20 alphanumeric character code that uses the ISO standard 17442. It is an international initiative and its reach goes beyond Regulation 91-507.
Pursuant to Regulation 91-507, every OTC transaction needs to be reported to a recognized trade repository, and each of the counterparty to this transaction must be identified and therefore are required have a LEI. In addition, the reporting agent, the reporting clearing house where the transaction was cleared, the clearing member or the person subject to the registration as a dealer which are counterparties to the transaction as well as the electronic trading platform where the transaction was executed need to have LEIs. An entity must have the same LEI for all transaction reporting under Regulation 91-507.
Market participants are invited to obtain a LEI from a Local Operating Unit (“LOU”).
The information that will need to be provided to LOUs by market participants include the official name of the entity, the address of its head office, the address of incorporation, the name of the business registry where the entity was formed (where available) as well as the business registry ID can also be submitted. The issuance of a LEI will depend on the LOU selected and it costs approximately $200 to $300 for the initial issuance request (subsequent years maintenance cost is around 100 $).
The LEI is also a required field for reporting obligations in other jurisdictions such as the United States (CFTC) and Europe (ESMA).
Pursuant to Regulation 91-507, reporting counterparties must report the data to be reported under that regulation to one of the trade repositories recognized by the Authority, namely:
Equivalent Trade Reporting Laws of Foreign Jurisdictions Subject to Deemed Compliance Pursuant to Subsection 26(5) of Regulation 91-507
|Jurisdiction||Law- Regulation and/or Instrument|
United States of America