CSA Publish Consultation Paper On OTC Derivatives Trading Facilities

The Canadian Securities Administrators yesterday released a consultation paper in which they proposed a framework for the regulation of over-the-counter derivatives trading facilities in Canada.

Ultimately, the paper sets out the CSA Derivative Committee's recommendations in respect of such things as: (i) a definition of derivatives trading facilities; (ii) the regulatory framework for such facilities; (iii) organizational requirements, which would be comparable to the extent appropriate to those established for marketplaces under NI 21-101; (iv) execution methods; (v) pre-trade and post-trade transparency; and (vi) determining whether certain OTC derivatives should be mandated to trade exclusively on an authorized derivatives trading facility.