Derivatives Business Conduct Rule Issued By The Canadian Securities Administrators

Background

After a 10-year long consultation process, the Canadian Securities Administrators (CSA) have published Multilateral Instrument 93-101 – Derivatives: Business Conduct (Rule), a core regulation governing dealing and advising in respect of over-the-counter derivatives (derivatives) that will take effect in September 2024. The Rule imposes 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 including certain blanket exemptions for qualifying non-Canadian dealers and advisers (Foreign Dealer and Adviser Exemptions). The Rule was issued on September 28, 2023, and updates the third version of the Rule published in January 2022.