CSA Publish Consultation Paper On OTC Derivatives Regulation

The Canadian Securities Administrators yesterday published a consultation paper on over-the-counter derivatives regulation in Canada intended to address "some of the deficiencies that have become apparent in the OTC derivatives market". Specifically, the consultation paper provides background on the need for regulation and provides a number of specific proposals. Among other things, the report recommends:

• central clearing of OTC derivatives that are determined to be appropriate for clearing and capable of being cleared, such as standardized derivatives;
• reporting of all derivatives trades by Canadian counterparties to a trade repository;
• electronic trading of OTC derivative products; and