The Manitoba Securities Commission yesterday released changes to its derivatives trade reporting rule that will, among other things, address the issue of clearing agency reporting where the clearing agency is not recognized or exempt in Manitoba (by adding a concept similar to Quebec of a "reporting clearing agency") and which will permit the reporting obligation to be assigned by written agreement (thereby allowing adoption of the ISDA reporting methodology and giving effect to other forms of delegation agreement). Also, similar to the Quebec rule, the Manitoba rule will require Canadian financial institutions (that are not otherwise caught as dealers) to report transactions with non-dealer local counterparties (as opposed to dual reporting in that situation).
Notably, however, the Manitoba amendments diverge from those in Ontario and Quebec insofar as the amended rule requires that, in certain circumstances involving two local non-dealers, each local counterparty submit to the MSC within 5 days of the trade a document identifying both the unique transaction identifier assigned to the transaction by the trade repository to which it reported the transaction, as well as the unique transaction identifier assigned to the transaction by the trade repository to which the other local counterparty reported the transaction.
The amendments come into force on October 31, 2014. As the amendments are being adopted without a consultation period, the MSC is also accepting comments on whether to make the amendments permanent, until January 5, 2015. For more information, see MSC Rule 2014-19.
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