CANADA: AMF publishes for comment clearing house, central securities and settlement system requirements

Thursday December 19 2013

The AMF is proposing new requirements for recognized clearing houses that carry on central counterparty, central securities depository or settlement system activities, recognized central securities depositories and recognized settlement systems, to ensure a framework consistent with the new international standards applicable to financial market infrastructures. These standards are set out in the Principles for financial market infrastructures report released in 2012 by the Committee on Payment and Settlement Systems and the Board of the International Organization of Securities Commissions. They address the concerns of the G20 and the Financial Stability Board regarding the strengthening of core financial infrastructures and markets, including derivatives markets and important infrastructures.

When enforced, the proposed requirements will enhance safety and efficiency in clearing, depository, settlement and recording arrangements and limit systemic risk and foster transparency and financial stability.

The AMF worked jointly with the Ontario Securities Commission (OSC), the British Columbia Securities Commission and the Bank of Canada to ensure consistency of the interpretation and application of these standards and to develop policies specific to the Canadian context.

Click on above link for further details.