Canadian financial regulator, Autorité des marchés financiers (AMF), has published for comment the new regulations on clearing houses, CSDs and settlement system requirements.
These requirements are based largely on international standards applicable to financial market infrastructures (FMIs) developed jointly by the Committee on Payment and Settlement Systems (CPSS) of the Bank for International Settlements and the Board of the International Organization of Securities Commissions.
The comment period will end on March 19, 2014. The new regulations are published in tandem with amendments to the derivatives regulations for which the AMF is also requesting comment by March 19, 2014.
The regulation has several purposes. It sets out certain requirements in connection with the application process for recognition as a clearinghouse, CSD or settlement system by the Authority, or for exemption from the recognition requirement.
The regulation also sets out on-going requirements for recognized clearinghouses that act as, or perform the services of a CCP, CSD or SS and for recognized central securities depositories or recognized settlement systems.
When enforced, the proposed requirements will enhance safety and efficiency in clearing, depository, settlement and recording arrangements and limit systemic risk and foster transparency and financial stability.
The AMF worked jointly with the Ontario Securities Commission (OSC), the British Columbia Securities Commission and the Bank of Canada to ensure consistency of the interpretation and application of these standards and to develop policies specific to the Canadian context
The regulation deals with significant changes including any change to its constating documents, any change to its by-laws and any change to its corporate governance or corporate structure, change to its ownership whether directly or indirectly and any material change to the design, operation or functionality of any clearing house’s, CSD’s or settlement systems operations and services, ceasing to carry on activities, filing of initial audited financial statements.
AMF Publishes Draft Regulation on Market Infrastructure Requirements
Canadian financial regulator, Autorité des marchés financiers (AMF), has published for comment the new regulations on clearing houses, CSDs and settlement system requirements.