For Immediate Release
February 12, 2015

Canadian Securities Regulators Seek Comment on Derivatives Rule Relating to Mandatory Central Counterparty Clearing

Montréal – Members of the Canadian Securities Administrators (CSA) today published for comment Proposed National Instrument 94-101 Mandatory Central Counterparty Clearing of Derivatives (the Clearing Rule).

The Clearing Rule describes requirements for central counterparty clearing of over-the-counter (OTC) derivatives transactions, and is intended to improve transparency in the derivatives market while enhancing systemic risk mitigation. It was developed following public comments received on CSA Consultation Paper 91406 OTC Central Counterparty Clearing, published in June 2012, and CSA Notice 91-303 Proposed Model Provincial Rule on Mandatory Central Counterparty Clearing of Derivatives, published in December 2013.

The Clearing Rule is divided into two rule-making areas:

  • the determination of derivatives (each a mandatory clearable derivative) that will be subject to the requirement to submit for central counterparty clearing; and
  • the requirement to submit a transaction in a mandatory clearable derivative to a recognized or exempted central counterparty for clearing (including proposed end-user and intragroup exemptions).

“Achieving greater transparency in the OTC derivatives market is a key component of the post-financial crisis regulatory reform committed to by the Group of Twenty (G20) nations to reduce systemic risk,” said Bill Rice, Chair of the CSA and Chair and CEO of the Alberta Securities Commission. “In meeting Canada’s commitment to the G20, the CSA intends to establish a nationwide harmonized derivatives clearing regime that is in line with international standards.”

For additional information about central counterparty clearing reform in Canada, the public may review the recently published Proposed National Instrument 24-102 Clearing Agency Requirements and the January 2014 publication of CSA Staff Notice 91-304 Model Provincial Rule – Derivatives: Customer Clearing and Protection of Customer Collateral and Positions.  

Following this consultation, the CSA will review all comments received and make appropriate amendments to the Clearing Rule. The CSA will then follow established processes to implement the amendments across Canadian provinces and territories.

 The Proposed Clearing Rule can be found on CSA members’ websites. The comment period is open until May 13th, 2015.

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:

Carolyn Shaw-Rimmington
Ontario Securities Commission
416-593-2361

Mark Dickey
Alberta Securities Commission
403-297-4481

Richard Gilhooley
British Columbia Securities Commission
604-899-6713

Sylvain Théberge
Autorité des marchés financiers
514-940-2176

Kevan Hannah
Manitoba Securities Commission
204-945-1513

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

Tanya Wiltshire
Nova Scotia Securities Commission
902-424-8586

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

Don Boyles
Office of the Superintendent of
Securities, Newfoundland and
Labrador
709-729-4501

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

Louis Arki
Nunavut Securities Office
867-975-6587

Gary MacDougall
Office of the Superintendent of
Securities, Northwest Territories
867-920-3318

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