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

Friday February 13 2015

Canadian Securities Administrators (CSA) 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.

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).

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.

Click here for Proposed Clearing Rules.

Click link above for further details.