CSA proposes OTC derivatives rules

The Canadian Securities Administrators (CSA) is calling for comment on a proposed regulatory change covering the derivatives.

Consultation Paper 91-404 – Derivatives: Segregation and Portability in OTC Derivatives Clearing sets out the CSA Derivatives Committee’s proposals regarding the segregation and portability of customer positions and related collateral in cleared over-the-counter (OTC) derivatives transactions.

“The CSA Derivatives Committee has developed proposals for segregation and portability arrangements that aim to protect customer positions and related collateral in the event of a clearing member insolvency,” said Bill Rice, chair of the CSA and chair and CEO of the Alberta Securities Commission.

The paper addresses the segregation of assets put forward as collateral for OTC derivatives transactions cleared through a central counterparty, by customers that access the counterparty indirectly through clearing members.

G20 commitments mandate the clearing of standardized OTC derivatives, making the effective operation of central counterparties essential to market stability.

Market participants are invited to submit their comments until April 10, 2012. All responses received will be published on the Autorité des marchés financiers (www.lautorite.qc.ca) and the Ontario Securities Commission (www.osc.gov.on.ca) websites.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.