Category: Structured Finance & Derivatives

Canadian Regulators Propose Broad Derivatives Dealer and Adviser Business Conduct Rules

April 24, 2017

On April 4, 2017, the Canadian Securities Administrators (CSA) published for comment Proposed National Instrument 93-101 – Derivatives: Business Conduct (Business Conduct Rule), which would impose a range of business conduct requirements on Canadian and foreign persons engaged in the business of trading in over-the-counter derivatives (derivatives) with Canadian clients (Derivatives Dealers) or advising Canadian clients in connection with transacting…

Alert: ISDA Publishes Canadian Clearing Classification Letter

April 6, 2017

On March 30, 2017, the International Swaps and Derivatives Association, Inc. (ISDA), with the assistance of Blakes lawyers, published the ISDA Canadian Clearing Classification Letter. The letter enables market participants to provide their counterparties with status information to determine if they are in scope for purposes of National Instrument 94-101 – Mandatory Central Counterparty Clearing of Derivatives (NI 94-101). The…

Canadian Regulators Finalize Customer Protection Rules for Cleared OTC Derivatives

March 3, 2017

 The Canadian Securities Administrators (CSA) recently published National Instrument 94-102 – Derivatives: Customer Clearing and Protection of Customer Collateral and Positions and the related Companion Policy (collectively, the Rule). The CSA released the Rule in conjunction with its release of National Instrument 94-101 – Mandatory Central Counterparty Clearing of Derivatives (see our January 2017 Blakes Bulletin: Canadian Regulators Finalize Mandatory…

Canadian Regulators Finalize Mandatory OTC Derivatives Clearing Rules

January 26, 2017

On January 19, 2017, the Canadian Securities Administrators (CSA) published National Instrument 94-101 – Mandatory Central Counterparty Clearing of Derivatives and Companion Policy 94-101 (collectively, the Clearing Rule). Under the Clearing Rule, certain over-the-counter (OTC) derivatives entered into by Canadian local counterparties must be submitted for clearing to a recognized or exempt clearing agency (Clearing Agency). The clearing mandate will…

Thinking at the Margin: Canadian Provincial Regulators Issue Margin Proposals for Non-Cleared Derivatives

August 15, 2016

Regulators of many financial institutions, federally in Canada and internationally, have established rules requiring margin to be exchanged in connection with derivatives that are not cleared through a central counterparty. A parallel set of margin requirements is being proposed by the Canadian Securities Administrators’ Derivatives Committee (Consultation Paper 95-401 – Margin and Collateral Requirements for Non-Centrally Cleared Derivatives (CSA Proposal))….

OTC Derivatives in Canada: Getting Ready for the New Regulatory Regime

June 7, 2016

As part of the current global regulatory reform process, the rollout of Canada’s regulatory regime for over-the-counter derivatives is now in full swing.  These new market-based rules will impact how you trade OTC derivatives.  Blakes discusses the practical consequences of these reforms, including the following topics: Understanding how the Canadian reforms fit into the global market context Adapting your compliance…

Canadian Derivatives Trade Reporting Amendments Impact Dealers and End-Users

May 18, 2016

On May 12, 2016, securities regulators in Ontario, Quebec and Manitoba announced changes to existing derivatives trade reporting requirements that will be of interest to both derivatives dealers and “end-users” of derivatives. The amendments to existing reporting rules (TR Amendments) impose a specific obligation on each transacting party to obtain and maintain a legal entity identifier (LEI); formalize prior relief…

Amendments to Canada’s Bank Restructuring Legislation: Bail-In and Financial Contract Safe Harbours

May 9, 2016

The Government of Canada recently introduced the Budget Implementation Act, 2016 No. 1 (Bill C-15) to implement certain initiatives announced in the March 2016 federal budget, including amendments to the Canada Deposit Insurance Corporation Act (CDIC Act). Among other things, Bill C-15 will give a new authority to the Canada Deposit Insurance Corporation (CDIC) to bail-in certain liabilities of Canada’s…

Margin Requirements for Non-Centrally Cleared Derivatives Issued in Canada

March 22, 2016

The Office of the Superintendent of Financial Institutions (OSFI), Canada’s federal regulator of financial institutions, recently issued Guideline E-22 – Margin Requirements for Non-Centrally Cleared Derivatives (Guideline). The Guideline requires the mandatory exchange of margin for non-centrally cleared derivatives transactions (NCCDs). A draft of the Guideline was published by OSFI on October 19, 2015, and the final Guideline reflects many…

Mandatory OTC Derivatives Clearing Rules Published for Second Round of Comments

February 29, 2016

On February 24, 2016, the Canadian Securities Administrators (CSA) published a revised Proposed National Instrument 94-101 Mandatory Central Counterparty Clearing of Derivatives (Proposed Clearing Rule) and a proposed companion policy for a 90-day comment period. The Proposed Clearing Rule sets out when certain over-the-counter (OTC) derivatives entered into by certain Canadian local counterparties will need to be submitted for clearing…