Wednesday February 17 2016

News Source: Global Exchanges

Focus: Other

Type: General




The securities regulatory authorities in Alberta, New Brunswick, Newfoundland and Labrador, Northwest Territories, Nova Scotia, Nunavut, Prince Edward Island, Saskatchewan and Yukon are publishing the following for a 60- day comment period expiring April 17, 2016:

  • proposed amendments (the Proposed TR Rule Amendments) to Multilateral Instrument 96-101 Trade Repositories and Derivatives Data Reporting (the TR Rule), and
  • proposed changes (the Proposed TR CP Changes) to Companion Policy 96-101CP Trade Repositories and Derivatives Data Reporting (the TR CP).

While the British Columbia Securities Commission is not an Authority publishing the Proposed Amendments under the notice, it anticipates that, subject to receiving the necessary approvals, it will, in the coming weeks, publish for comment proposed amendments to the TR Rule that are identical to the Proposed Amendments described in this notice. The Participating Jurisdictions anticipate that the Proposed Amendments will be fully harmonized.

The key objectives of the Proposed TR Rule Amendments are to:

Make explicit the requirement that a local counterparty have a legal entity identifier (LEI), and revise the provisions relating to LEIs to reflect international developments;

Provide relief from the reporting obligations under the TR Rule for derivatives between two end-users (i.e., not derivatives dealers or affiliates of derivatives dealers, or clearing agencies or affiliates of clearing agencies) that are affiliated entities if either:

  • each is a local counterparty in at least one jurisdiction in Canada, or
  • reporting is done in compliance with equivalent trade reporting laws of specified foreign jurisdictions or under the securities legislation of another jurisdiction of Canada;

Provide a transition period before the reporting obligations under the TR Rule become effective for an end-user that previously qualified for an exclusion from reporting derivatives under the TR Rule and becomes the reporting counterparty for the first time;

Set out the requirements for public dissemination of transaction-level data, balancing the objective of providing price information on the Canadian over-the-counter (OTC) derivatives market and the need to preserve the anonymity of counterparties to limit the negative impact of transparency on market participants; and

Specify certain laws, regulations or instruments of foreign jurisdictions in Appendix B, for the purpose of providing that, for certain derivatives, reporting in compliance with these specified laws, regulations or instruments is deemed to also be in compliance with the reporting obligations under the TR Rule.

Click on the link above for further details.