Canadian Securities Regulators Seek Comment on Model Rules Relating to Derivatives: Product Determination and Derivatives Trade Repositories and Data Reporting

TORONTO, Dec. 6, 2012 /CNW/ - The Canadian Securities Administrators (CSA) today published CSA Staff Consultation 91-301 requesting comment for Model Provincial Rule Derivatives: Product Determination (Product Determination Rule) and Model Provincial Rule Trade Repositories and Derivatives Data Reporting (TR Rule), collectively referred to as the "Model Reporting Rules".

The proposed Model Reporting Rules:

• define the types of contracts or instruments that are required to be reported to a trade repository;
• establish requirements for the operation of trade repositories; and,
• establish requirements for transaction data reporting.
  
  

The reporting of derivatives transactions to trade repositories is one of the most important components of the G-20 commitments to global reform of the over-the-counter (OTC) derivatives markets.  Since November 2010, the CSA has published for comment a series of Consultation Papers that recommend proposals to regulate the OTC derivatives markets in Canada.  These Model Reporting Rules mark the first policy action resulting from the consultation and will pave the way for other future rules that are essential to the regulation of OTC derivatives transactions and the improvement of market transparency.

"Trade repositories and the requirement to report OTC derivatives contracts to trade repositories will improve transparency in the derivatives markets, mitigate systemic risk and protect against market abuse," said Bill Rice, Chair of the CSA and Chair and CEO of the Alberta Securities Commission.

The Product Determination Rule identifies the contracts or instruments that are required to be reported to a trade repository.  The TR Rule describes requirements for the operation and ongoing regulation of designated or recognized trade repositories, and the mandatory reporting of derivatives transaction data by market participants.  In addition to these Model Reporting Rules, a number of future proposed model rules will be published for comment that relate to the key areas addressed by the Consultation Papers.  Together, all the model rules will formulate a proposed regime for the regulation of the OTC derivatives markets.  The model rule process is further described in CSA Staff Consultation 91-301, which accompanies the Model Reporting Rules.

The proposed Model Reporting Rules can be found on CSA members' websites and the comment period is open until February 4, 2013.

The CSA, the umbrella organization comprising the securities regulators of Canada's provinces and territories, coordinates and harmonizes the regulation the Canadian capital markets.

SOURCE: Canadian Securities Administrators

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

Mark Dickey
Alberta Securities Commission
403-297-4481

Sylvain Théberge
Autorité des marchés financiers
514-940-2176 

Richard Gilhooley
British Columbia Securities
Commission
604-899-6713 

Ainsley Cunningham
Manitoba Securities Commission
204-945-4733      

Wendy Connors-Beckett
New Brunswick Securities Commission
506-643-7745

Tanya Wiltshire
Nova Scotia Securities Commission 
902-424-8586 

Dean Murrison 
Financial and Consumer Affairs Authority
of Saskatchewan 
306-787-5879

Janice Callbeck
PEI Securities Office
Office of the Attorney General
902-368-6288      

Doug Connolly
Financial Services Regulation Div.
Newfoundland and Labrador
709-729-2594

Rhonda Horte
Office of Yukon Superintendent
of Securities
867-633-7969

Louis Arki
Nunavut Securities Office
867-975-6587

Donn MacDougall
Northwest Territories
Securities Office
867-920-8984