Canada's First Derivatives Business Conduct Rule Coming Into Force

On September 28, 2024, National Instrument 93-101 (the Instrument) will come into force, introducing a business conduct regime for participants in the Canadian OTC derivatives market. All firms engaged in dealing in or advising on over-the-counter derivatives in Canada—including firms otherwise relying on exemptions from dealer/adviser registration requirements—will need to comply with the Instrument or seek to rely on an available exemption.

What you need to know

• On September 28, 2024, Canada's first derivatives business conduct regime will come into force, imposing obligations on derivatives dealers and advisers across Canada.
• Certain client representations and waivers contemplated by the Instrument will need to be obtained from derivatives counterparties prior to certain cut-off dates as detailed below. Firms can include these items in their standard ISDA Canadian representation letters¹.