On January 29, the Canadian Securities Administrators (CSA)
published for comment CSA Consultation Paper 92-401 Derivatives
Trading Facilities. The Consultation Paper prepared by the
Canadian Securities Administrators Derivatives Committee (CSA
Committee) proposes a framework for regulating facilities that
brings together multiple buyers and multiple sellers of
over-the-counter (OTC) derivatives. The Consultation Paper also
proposes that OTC derivatives that meet certain criteria may be
required to trade exclusively on such regulated facilities.
International standards
The Canadian OTC derivatives market comprises a relatively small
share of the global market and a substantial portion of
transactions entered into by Canadian market participants involves
foreign counterparties. The CSA Committee is of the view that it is
therefore important that rules developed for the Canadian market
are aligned with international practice to ensure that Canadian
market
