Derivatives Dealer Registration And Disclosure Under Amended Alberta Securities Act - In Force October 31

On October 31, amendments to the Alberta Securities Act will come into force that expressly deal with derivatives, including by modifying the registration requirement with respect to derivatives dealers. This article will focus on the aspects of the Act that are relevant to dealer registration and prospectus requirements. 

Currently in Alberta, an OTC derivative meets the definition of "future" and, consequently, they are "securities", meaning that dealers in them are prima facie subject to the same registration and prospectus requirements that apply to securities.  Blanket Order 91-505 Over-the Counter Derivatives Transactions, however, exempts from the registration and prospectus regimes OTC derivatives between "qualified parties" and all physical commodity contracts.