CSA Finally Adopts Derivatives Business Conduct Rule

The Canadian Securities Administrators (the "CSA") have finally adopted Multilateral Instrument 93-101 Derivatives: Business Conduct (the "Rule") and its companion policy, Companion Policy 93-101 Derivatives: Business Conduct (the "Companion Policy"). The Rule will come into force on September 28, 2024 and will apply in all provinces and territories of Canada, except for British Columbia. The British Columbia Securities Commission announced its intention to adopt a substantially similar rule at a later date, at which time the Rule will be converted to a national instrument.

Initially published in draft form in 2017 to establish a comprehensive regime regulating the business conduct of participants in the over-the-counter ("OTC") derivatives markets in response to the 2008 financial crisis, the Rule is the result of an extensive consultation process that included three drafts of the Rule, several comment periods and a public roundtable. For a more detailed