Canadian Securities Administrators Publish Consultation Paper On Margin Requirements For Non-Centrally Cleared Derivatives

Yesterday the CSA published for comment a Consultation Paper proposing a framework for margin requirements on non-centrally cleared derivatives. The invitation to provide comments on the proposal ends September 6, 2016.

The requirements under the Consultation Paper are based on the minimum standards for margin requirements for non-centrally cleared derivatives developed by the Basel Committee on Banking Supervision (BCBS) and the International Organization for Securities Commission (IOSCO) (the BCSBS-IOSCO Standards) that apply to certain financial entities and systemically important non-financial entities. The CSA has also stated that the proposed framework is largely consistent with OSFI Guideline E-22 on Margin Requirements for Non-Centrally Cleared Derivatives applicable in Canada to federally regulated financial institutions (FRFIs). FRFIs will not be subject to the proposed framework (although FRFI's are included in the definition of "financial entities" for