For Immediate Release
January 19, 2017

Canadian Securities Regulators Adopt Rules for Over-the-Counter Derivatives Clearing

Toronto – The Canadian Securities Administrators (CSA) today announced two new national instruments affecting over-the-counter (OTC) derivatives trading in Canada. The national instruments are part of Canada’s ongoing implementation of commitments to reform the global OTC derivatives markets.

“These national instruments are designed to align with international standards and provide safeguards in the Canadian market for counterparties transacting in over-the-counter derivatives, while fostering a flexible and competitive market for clearing service providers,” said Louis Morisset, Chair of the CSA and President and CEO of the Autorité des marchés financiers.

National Instrument 94-101 Mandatory Central Counterparty Clearing of Derivatives requires certain counterparties to clear certain standardized OTC derivatives through a central counterparty clearing agency, subject to exemptions set out in the instrument.

National Instrument 94-102 Derivatives: Customer Clearing and Protection of Customer Collateral and Positions is designed to protect a local customer’s positions and collateral when clearing OTC derivatives and to improve clearing agencies’ resilience to default by a clearing intermediary. The instrument includes requirements related to the segregation and portability of customer collateral and positions as well as detailed record-keeping, reporting and disclosure requirements.

In response to comments received during the most recent consultation periods, both national instruments provide certain exemptions for foreign entities that comply with similar laws of the United States or the European Union.

The CSA has collaborated with the Bank of Canada, the Office of the Superintendent of Financial Institutions, the Department of Finance Canada and market participants on the national instruments.

Provided all necessary approvals are obtained, NI 94-101 comes into force on April 4, 2017 and NI 94-102 comes into force on July 3, 2017.

The notices relating to the national instruments can be found on CSA members’ websites.

The CSA, the council of the securities regulators of Canada’s provinces and territories, co-ordinates and harmonizes regulation for the Canadian capital markets.

For more information:

Kristen Rose
Ontario Securities Commission
416-593-2336

Nicole Tuncay
Alberta Securities Commission
403-297-4008

Alison Walker
British Columbia Securities Commission
604-899-6713

Sylvain Théberge
Autorité des marchés financiers
514-940-2176

Jason (Jay) Booth
Manitoba Securities Commission
204-945-1660

Andrew Nicholson
Financial and Consumer Services
Commission, New Brunswick
506-658-3021

Jane Anderson
Nova Scotia Securities Commission
902-424-0179

Janice Callbeck
Office of the Superintendent of Securities
P.E.I.
902-368-6288

John O’Brien
Office of the Superintendent of Securities
Newfoundland and Labrador
709-729-4909

Rhonda Horte
Office of the Yukon Superintendent of
Securities
867-667-5466

Jeff Mason
Nunavut Securities Office
867-975-6591

Tom Hall
Office of the Superintendent of Securities
Northwest Territories
867-767-9305

Shannon McMillan
Financial and Consumer Affairs
Authority of Saskatchewan
306-798-4160