TORONTO, July 25,
2024 /CNW/ - The Canadian Securities Administrators
(CSA) today published final amendments that streamline and
harmonize over-the-counter (OTC) derivatives data reporting with
global standards.
The amendments were finalized after considering comments
received on proposed amendments published in June 2022. The amendments are expected to reduce
the complexity of market participants' reporting systems and
decrease ongoing operational and compliance costs, while improving
the consistency and quality of the data available to regulators and
the public.
"The changes to derivatives reporting standards represent a
significant milestone for market participants in Canada. By harmonizing Canadian data reporting
requirements with international standards, the CSA is reducing
regulatory burden and increasing market efficiency," said
Stan Magidson, CSA Chair and Chair
and CEO of the Alberta Securities Commission. "The resulting
improvements to data quality and consistency will enable us to more
effectively identify risks and vulnerabilities in our derivatives
markets and strengthen protections for derivatives market
participants."
The amendments include a harmonized CSA Derivatives Data
Technical Manual that provides clarity and consistency regarding
the format and values for reporting harmonized data elements. These
updated data elements align with international standards developed
by the Committee on Payments and Market Infrastructures (CPMI) and
the International Organization of Securities Commissions
(IOSCO).
In addition, the amendments include:
- Updated requirements for trade repository governance,
operations and management of risk to align with international
standards;
- Improvements that enhance data accuracy and consistency, such
as data validation and verification, similar to other global
regulators;
- Greater harmonization within the CSA, including a harmonized
threshold in the commodity derivatives exclusion for
non-dealers;
- Extended reporting deadlines for end-users;
- Optional position level data reporting for certain types of
derivatives;
- Changes to reporting for derivatives executed anonymously on
trading facilities such as swap execution facilities.
The amendments to Trade Repositories and Derivatives Data
Reporting and related Companion Policies can be found on the
respective CSA member websites.
The CSA Derivatives Data Technical Manual is published in
Manitoba Securities Commission Staff Notice 91-701, Ontario
Securities Commission Staff Notice 91-705, and in the relevant
Companion Policy for the remaining jurisdictions.
The amendments will take effect on July
25, 2025.
The CSA takes the opportunity to remind all Canadian market
participants transacting OTC derivatives that they must renew their
legal entity identifier (LEI). Any Canadian market participant that
has outstanding OTC derivatives and does not renew its LEI is not
in compliance with securities law.
The CSA, the council of the securities regulators of
Canada's provinces and
territories, co-ordinates and harmonizes regulation for the
Canadian capital markets.
For media inquiries, please contact:
Ilana
Kelemen
Canadian Securities
Administrators
media@acvm-csa.ca
|
Debra Chan
|
Ontario Securities
Commission
media_inquiries@osc.gov.on.ca
|
For investor inquiries, please contact your local securities
regulator
SOURCE Canadian Securities Administrators