Derivatives Transaction Reporting Starts In Canada – Are You Ready?

By Brian Koscak and Michael Brown – Effective as of October 31, 2014, securities legislation in each of Ontario, Québec and Manitoba came into force that requires "local counterparties" which engage in derivative transactions to report certain derivatives transaction data to a designated trade repository. OSC Rule 91-507 Trade Repositories and Derivatives Data Reporting and the corresponding rules in Québec and Manitoba (collectively, the TR Rules) have broad application and any issuer or entity that engages in derivatives transactions, for hedging or speculative purposes, should be aware of its implications and reporting obligations.

Why report derivative transactions?

The TR Rules were developed to improve transparency in the derivatives markets by requiring market participants to report transaction data to designated trade repositories. Such data is considered essential for regulatory oversight of the derivatives market, and will allow regulators to address a