Canadian Securities Regulators Adopt New Rules For OTC Derivatives Clearing

Summary

On January 19, 2017, the Canadian Securities Administrators (CSA) announced two new instruments affecting over-the-counter (OTC) derivatives trading in Canada. National Instrument 94-101 Mandatory Central Counterparty Clearing of Derivatives ("NI 94-101") and National Instrument 94-102 Derivatives: Customer Clearing and Protection of Customer Collateral and Positions ("NI 94-102"), represent part of the ongoing implementation of Canada's commitment under the G20 agreement of 2009 to reform derivatives markets in response to the global financial crisis.

In some jurisdictions, ministerial approvals are required for the implementation of these instruments. Assuming all necessary approvals are obtained, NI 94-101 will come into effect on April 4, 2017, and NI 94-102 will come into effect on July 3, 2017.