News & Events

CSA / ACVM
For Immediate Release
January 16, 2014


CSA seek comment on derivatives Model Rule for customer clearing and protection of customer collateral and positions


Toronto - The Canadian Securities Administrators (CSA) today published for comment CSA Staff Notice 91-304 Model Provincial Rule Derivatives: Customer Clearing and Protection of Customer Collateral and Positions, (Model Rule).  The Model Rule is intended to increase the protection of customer collateral and positions, and to increase the resilience of derivatives clearing agencies.

Canadian and international initiatives mandating the clearing of over-the-counter (OTC) derivative transactions will cause certain market participants, who are not clearing members at a derivatives clearing agency, to clear their OTC derivatives transactions indirectly through market participants that are clearing members (or otherwise provide clearing services). The Model Rule published today would ensure that customer clearing provides customers with a high level of protection. The rule requirements relate to segregation and use of customer collateral, as well as record keeping and disclosure about collateral held.

“The Model Rule would implement a robust protection regime for customers in cleared OTC derivative transactions,” said Bill Rice, Chair of the CSA and Chair and CEO of the Alberta Securities Commission. “It imposes requirements on clearing agencies and their participants that will protect derivatives market participants in times of financial stress and will facilitate the transfer of customer positions and collateral.”

Today’s proposal follows consultation with market participants and feedback received from stakeholders on CSA Consultation Paper 91-404 Derivatives: Segregation and Portability in OTC Derivatives Clearing published in February 2012.  The CSA welcome feedback on today’s proposal, which will move this important initiative forward. The comment period is open until March 19, 2014.

The CSA, the council of the securities regulators of Canada’s provinces and territories, co-ordinates and harmonizes regulation for the Canadian capital markets.


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For more information:
Carolyn Shaw-Rimmington
Ontario Securities Commission
416-593-2361

Mark Dickey
Alberta Securities Commission
403-297-4481

Richard Gilhooley
British Columbia Securities Commission
604-899-6713

Sylvain Théberge
Autorité des marchés financiers
514-940-2176

Kevan Hannah
Manitoba Securities Commission
204-945-1513

Wendy Connors-Beckett
New Brunswick Securities Commission
506 643-7745

Tanya Wiltshire
Nova Scotia Securities Commission
902-424-8586

Janice Callbeck
PEI Securities Office
Office of the Attorney General
902-368-6288

Don Boyles Financial Services Regulation Div. Newfoundland and Labrador
709-729-4501

Rhonda Horte
Office of the Yukon Superintendent
of Securities
867-667-5466

Louis Arki
Nunavut Securities Office
867-975-6587
Doug Connolly
Financial Services Regulation Division of
Newfoundland and Labrador
709-729-4189

Daniela Machuca
Financial and Consumer Affairs
Authority of Saskatchewan
306-798-4160