Canadian Securities Administrators Unveil Proposed Derivatives Registration Regime

The Canadian Securities Administrators Derivatives Committee (the CSA) published Consultation Paper 91-407 – Derivatives: Registration (the Paper) on April 18, 2013. The Paper outlines a proposed registration and compliance regime that will apply to derivatives dealers, derivatives advisers and certain major participants in Canadian derivatives markets and will impose Canadian registration obligations on many Canadian and foreign derivatives market participants that previously were not required to register with securities regulatory authorities. With limited exceptions, all companies engaging in the business of trading in or advising on derivatives in Canada would be required under the proposal to be registered as derivatives dealers or derivatives advisers and to comply with specific registration requirements including proficiency, financial reporting, capital, insurance, record-keeping and honest dealing requirements and additional business conduct requirements that