Margin And Collateral Requirements For Non-Centrally Cleared Derivatives – Consultation Paper

On July 7, 2016, the Canadian Securities Administrators (the "CSA") published for comment CSA Consultation Paper 95-401 — Margin and Collateral Requirements for Non-Centrally Cleared Derivatives (the "Consultation Paper"). The Consultation Paper proposes a framework that will require the exchange of initial and variation margin to secure the performance of non-centrally cleared over-the-counter derivatives ("OTC Derivatives") for certain counterparties. The recommendations in the Consultation Paper are intended to be broadly consistent with international standards and harmonized with the Office of the Superintendent of Financial Institutions' margin requirements for federally regulated financial institutions (the "OSFI Guidelines").