CSA Restarts Canadian Derivatives Regulatory Project And Issues A Revised Business Conduct Rule Proposal

After a long pandemic break from publishing regulatory proposals and new rules in respect of over-the-counter derivatives (derivatives), the Canadian Securities Administrators (CSA) is again moving forward with its derivatives regulatory project launched in response to the 2008 financial crisis.

On January 20, 2022, the CSA published for comment a further revised version of Proposed National Instrument 93-101 - Derivatives: Business Conduct (Proposed Rule) and a related proposed Companion Policy. The Proposed Rule would impose business conduct requirements on Canadian and foreign persons engaged in the business of trading derivatives (Derivatives Dealers) or advising on derivatives transactions (Derivatives Advisers) in Canadian provinces and territories (jurisdictions), subject to a range of important exemptions.