Model Provincial Rules - Derivatives Product Determination And Trade Repositories And Derivatives Data Reporting

Canadian Securities Administrators Release Consultation Paper 91-301

In December 2012, the Canadian Securities Administrators OTC Derivatives Committee (the "Committee") released Consultation Paper 91-301 that includes model provincial rules on (i) Derivatives: Product Determination and (ii) Trade Repositories and Derivatives Data Reporting (collectively, the "Model Rules") [available here]. The Model Rules build, in part, on the Committee's previously issued derivatives consultation papers. The comment period for the Model Rules will expire on February 4, 2013.

DERIVATIVES: PRODUCT DETERMINATION (THE "SCOPE RULE")

The Scope Rule is meant to provide a broad definition of the term "derivative" for purposes of both existing and proposed provincial securities legislation. Although the Scope Rule will initially only apply for purposes of the Trade Repositories and Derivatives Data Reporting rule, it is expected that the Scope Rule will apply to future derivatives