OSC Announces Compliance Review Of Derivatives Data Reporting

On July 2, 2015, the Ontario Securities Commission (OSC) announced that it intends to initiate a compliance review of the reporting requirements of OSC Rule 91-507 Trade Repositories and Derivatives Data Reporting in fiscal 2015/2016.

According to OSC Staff Notice 91-704 the initial focus of the compliance reviews will be on the most active derivatives dealers and their compliance with the duty to report derivatives data to a trade repository under Part 3 of OSC Rule 91-507.  The compliance review will be focused on determining, among other questions: (i) whether the correct transactions were accurately reported within required timelines; (ii) whether reporting counterparties were correctly determined; (iii) whether life cycle and valuation data was reported and updated in accordance with required timeframes; and (iv) whether a Legal Entity Identifier for each transaction counterparty was appropriately reported.  As part of the compliance reviews, OSC staff intend