Québec National Assembly Adopts Legislation To Govern Derivatives

On June 20, 2008, the Québec government adopted the Derivatives Act (the Act), which provides a legislative framework to govern derivatives activities within the province. This legislative action follows the publication by the Autorité des marchés financiers (the AMF) in August 2007 of the Proposed Framework for Regulation of Derivatives Markets in Québec (the 2007 Proposal).

Once in force, the Act will govern derivatives offerings, as well as trading and related activities in Québec. The Québec government intends to oversee and regulate the activities of derivatives market professionals and other market participants in Québec so as to control systemic risk in derivatives trading and provide for mechanisms for client complaints and investor protection in derivatives-related matters.