Change At The Margins: CSA Publishes Consultation Paper On Margin Requirements For Non-Centrally Cleared Derivatives

Co-author: Brent Thomas, Student-At-Law

On July 7, 2016, the Canadian Securities Administrators ("CSA") Derivatives Committee ("Committee") released CSA Consultation Paper 95-401 – Margin and Collateral Requirements for Non-Centrally Cleared Derivatives ("Consultation Paper"). The Consultation Paper is the Committee's initial step in the development of regulations for minimum margin requirements for non-centrally cleared derivatives in Canada.

The Consultation Paper's proposals ("Proposals") are intended to be largely harmonized with the Office of the Superintendent of Financial Institutions Guideline E-22: Margin Requirements for Non-Centrally Cleared Derivatives ("OSFI Guideline") (our summary of which can be found here). Although the Proposals are intended to be largely consistent with the rules of the OSFI Guideline, there are some distinct differences (discussed below).