The OSC announced the
anticipated further amendments to OSC Rule 91-507
Trade Repositories and Derivatives Data
Reporting (the TR Rule) to incorporate
reporting in accordance with the Canadian Transaction Reporting
Requirements issued by ISDA April 4, 2014 where
transactions are between two dealers or two non-dealers, thus
avoiding (hopefully) double reporting. In order to
rely on the ISDA methodology: (i) each party to the
transaction must agree to a multilateral agreement administered by
and delivered to IDSA and under which the process set out in
the ISDA methodology is required to be followed;
(ii) the ISDA methodology process must be followed
in determining the reporting counterparty in respect of
that transaction; and (iii) each party to the transaction must
consent to the release to the OSC by ISDA of
information relevant in determining the applicability of the first
As we discussed in April,
amendments were also recently announced to delay the effective date
of reporting obligations under the rule and to lessen the burden on
local end-user counterparties.
The amendments announced today also designate the U.S. as a
jurisdiction that will satisfy the substituted compliance condition
in section 26(5) when reporting pursuant to CFTC data reporting
rules. Recall that this substituted compliance rule only applies if
the only local counterparty is a party that is a local counterparty
because they are registered as a derivatives dealer in the
jurisdiction (but are not otherwise located in the jurisdiction) or
are an affiliate who liabilities are assumed by a party located in
In terms of data to be reported it amends the local counterparty
identification data field to require market participants to specify
the provinces in which the parties are local counterparties, thus
facilitating the filing of one transaction report for multiple
jurisdictions. In addition, a few fields that were not consistent
with requirements in other jurisdictions were removed (ie. those
labelled “Reporting counterparty derivatives dealer or
non-derivatives dealer”, “Clearing timestamp: and
Assuming Ministerial approval, these amendments will come into
effect on September 9, 2014.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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The Canadian Office of the Superintendent of Financial Institutions ("OSFI") recently ruled that a bank cannot promote comprehensive credit insurance ("CCI") within its Canadian branches under the Insurance Business (Banks and Bank Holdings Companies) Regulations (the "Regulations").
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