CSA Propose Amendments To The Mandatory Derivatives Clearing Rule

On October 12, 2017, the Canadian Securities Administrators (CSA) proposed for comment amendments (Amendments) to National Instrument 94-101 Mandatory Central Counterparty Clearing of Derivatives (NI 94-101), in order to refine the scope of entities that will become subject to mandatory clearing requirements beginning in August 2018.

Clearing members that subscribe for a regulated clearing agency's clearing services in respect of mandatory clearable derivatives (Clearing Agency Participants) have been subject to the mandatory clearing obligations under NI 94-101 (Clearing Requirements) since NI 94-101 came into force in April 2017.

As discussed in our August 2017 Blakes Bulletin: Mandatory Clearing of OTC Derivatives Delayed for Certain Entities, the following two additional classes of counterparties will become subject to the Clearing Requirements in August 2018: