Derivatives Update: CSA Propose Margin And Collateral Requirements For Non-Centrally Cleared Derivatives

The Canadian Securities Administrators (CSA) recently published for comment Consultation Paper 95-401 – Margin and Collateral Requirements for Non-Centrally Cleared Derivatives proposing a framework for minimum margin requirements for non-centrally cleared derivatives.

This framework is another development in an ongoing reform by the CSA and other regulators intended to make the Canadian over-the-counter (OTC) derivatives market more secure and transparent. For more information about the other aspects of the reform, see our previous articles concerning the revised mandatory clearing rules for OTC derivatives and the customer clearing rule published by the CSA and the final margin requirements for non-centrally cleared derivatives transactions published by the Office of the Superintendent of Financial Institutions (OSFI).