ASC Issues New OTC Derivatives Order

On December 31, 2012, the Alberta Securities Commission replaced Blanket Order 91-503 with Blanket Order 91-505 Over-the-Counter Derivatives.

As we discussed in an earlier post, an initial version of Rule 91-505 was published in February 2011, with a revised rule proposed in October 2012. As we discussed at the time, the revised proposal reintroduced the concept of "qualified parties" and created an exemption from the prospectus and registration requirements for all over-the-counter futures contracts where each party is a qualified party, subject to the potential for incremental future requirements as may be imposed as a result of the CSA's ongoing initiatives relating to trade reporting, clearing and other associated matters in relation to derivatives.