Canada Proposes OTC Derivatives Clearing Mandate

Canada’s regulatory authority has proposed a clearing mandate for over-the-counter (OTC) derivatives, as it looks to align with G20 post-crisis reforms.
By Joe Parsons(2147488729)
Canada’s regulatory authority has proposed a clearing mandate for over-the-counter (OTC) derivatives, as it looks to align with G20 post-crisis reforms.

The proposed rules follow a consultation launched and published by the Canadian Securities Administrators (CSA) in December 2013.

The proposal provides for substituted compliances in the case of transactions with local counterparties, as long as the clearing house in jurisdictions follows equivalent clearing rules.

“In meeting Canada’s commitment to the G20, the CSA intends to establish a nationwide harmonized derivatives clearing regime that is in line with international standards,” says Bill Rice, chair of the CSA and chair and CEO of the Alberta Securities Commission.

The comment period for the clearing rules is open until May 13, 2015.

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