Over-the-Counter Derivatives Regulation in Canada

The CSA Derivatives Committee has released CSA Consultation Paper 91-401 Over-the-Counter Derivatives Regulation in Canada, a public consultation paper that outlines deficiencies in the OTC derivatives market and outlines proposals regarding their regulation. The specific issues raised include: mandatory reporting of all derivatives trades by Canadian counterparties to a trade repository; regulatory authority of provincial regulators to mandate electronic trading of OTC derivatives; mandatory central clearing of OTC derivatives if appropriate for clearing; imposing capital; and, collateral requirements to reflect appropriately the risks that an entity assumes; exemptions for defined categories of end-users.

The Panel is monitoring the evolving regulation with regards to OTC derivatives and the extent to which such regulation addresses systemic risk and market transparency issues. In support of those efforts, we are requesting feedback regarding the consultation paper which will in turn assist the Panel to formulate its position with regards to the consultation paper. You may provide your comments by email by selecting the “Submit Comments” box below. You may also provide written comments in hard copy or electronic form. It would be helpful to receive your comments by December 31, 2010. If you prefer to send your comments in hard copy or electronic form instead of the email comment box, you may send them to the address below. All comments will be forwarded to the Investor Advisory Panel.

Allan Krystie
Senior Administrator, Investor Advisory Panel
Ontario Securities Commission
20 Queen Street West
Suite 1900, Box 55
Toronto, ON M5H 3S8

Please note that any comments submitted here are intended for the Investor Advisory Panel’s use only. If you wish to send comments to the Canadian Securities Administrators Derivatives Committee, please review the instructions on page 2 of the CSA Consultation Paper directly below.