The Ontario Securities Commission (OSC), the Manitoba Securities Commission (MSC) and the Autorité des marchés financiers (AMF), respectively, published Rule 91-507 requiring “reporting counterparties” to report certain derivatives data to “designated” or “recognized” trade repositories with respect to transactions involving “local counterparties”. The OSC, MSC and AMF have also published companion policies.
In these three jurisdictions, for trades involving a “clearing agency” or a Dealer, trade reporting begins on July 2, 2014 and, for trades that do not involve such entities, on September 30, 2014. The securities regulatory authorities in certain of the remaining provinces of Canada have indicated their intention to introduce substantially identical rules by way of a multi-lateral instrument. Canadian federally regulated financial institutions may become subject to similar federal or national rules, orders or directives.
It is anticipated that other rules and instruments to be published and finalized by Canadian Regulators with respect to Derivatives will include a substantially equivalent definition of “local counterparty” to that in the TR Rules.
The first Canadian Representation Letter allowed you to provide information needed to assess how Canadian Regulatory Requirements do or may apply to Transactions between counterparties.
More information and webinars on the topic will be posted here in due course.