The Ontario Securities Commission (OSC) has published OSC Rule 91-506 Derivatives: Product Determination and OSC Rule 91-507 Trade Repositories (TR) and Derivatives Data Reporting (DR), the first set of harmonized derivatives rules that intends to bring greater transparency to the over-the-counter (OTC) derivatives market and pave the way for future rules.
The reporting of derivatives transactions to trade repositories will give the OSC access to data that will facilitate market surveillance and shed light on the nature and key characteristics of the Canadian derivatives market.
“The first set of harmonized derivatives rules represents an important milestone for OTC derivatives reform. These rules will provide the OSC with the right tools to better monitor the derivatives market, address systemic issues before they become significant and protect investors,” says Howard Wetston, chair and CEO of the OSC. “We are delivering on our G-20 commitments and have harmonized these rules at both the international and local levels.”
The TR and DR rules take effect Dec. 31, 2013, and the reporting requirements will begin July 2, 2014.
The OSC will hold an educational seminar on Jan. 15, 2014, to ensure that market participants are prepared to meet their reporting obligations. Further details on the seminar will be announced in the coming weeks.
The Autorité des marchés financiers and the Manitoba Securities Commission also published harmonized province-specific rules.