On June 17, 2016, pursuant to Multilateral CSA Staff Notice
96-301 (the "Notice"), the securities regulators of each
Alberta, New Brunswick, Nova Scotia and Saskatchewan (the
"Announcing Jurisdictions") announced that they were
providing harmonized discretionary relief with respect to certain
obligations under the derivatives trade reporting rules that
recently came into effect in each of the Announcing Jurisdictions
(the "New Trade Reporting Rules") as well as the
jurisdictions of British Columbia, Newfoundland and Labrador, the
Northwest Territories, Nunavut, Prince Edward Island and Yukon
(such jurisdictions being the "Other Participating
In this regard, each of the Announcing Jurisdictions have issued
a version of Blanket Order 96-501 and it is anticipated that the
Other Participating Jurisdictions will issue similar local relief
prior to the first reporting under the New Trade Reporting Rules on
July 29, 2016.
Blanket Order 96-501 is intended to address situations where
foreign laws prevent or hinder reporting, and situations where the
reporting counterparty to a derivative has been unable to obtain
certain information from its counterparty to enable the reporting
counterparty to fulfil its reporting obligations under the New
Trade Reporting Rules with respect to certain transactions entered
on or before December 15, 2017.
While the harmonized discretionary relief contemplated by
Blanket Order 96-501 may prove very useful to the counterparties
that are required to report derivatives transactions under the New
Trade Reporting Rules, it is some additional information contained
in the Notice that was of particular interest to us.
More specifically, the Announcing Jurisdictions clarified in the
Notice that the anticipated date for first reporting under the New
Trade Reporting Rules remains July 29, 2016. Similarly, the
anticipated date for first reporting of derivatives transactions
that are entered solely amongst "end-users" is still
anticipated to be November 1, 2016.
Further, the Announcing Jurisdictions confirmed that, while they
are still working on the amendment to the New Trade Reporting Rules
that were published in February of this year that, amongst other
things, contemplates an exemption to report derivatives
transactions entered between affiliates ("Inter-Affiliate
Trades"), they anticipate announcing implementation of those
More surprisingly, the Announcing Jurisdictions indicated that
they anticipate that those amendments are going to be substantially
in the same form as originally published by the Announcing
Jurisdictions and the Other Participating Jurisdictions
(collectively, the "New Trade Reporting Jurisdictions")
We had anticipated that the New Trade Reporting Jurisdictions
would modify their February 2016 proposed amendment to align their
Inter-Affiliate Trade exemptions with recently adopted changes made
by the securities regulators in Manitoba, Ontario and Quebec in
their respective approaches for addressing Inter-Affiliate Trades
(see our prior update entitled "Ontario, Quebec and Manitoba
adjust approach to reporting Inter-Affiliate Trades" dated May
Under the new approach of Manitoba, Ontario and Quebec, there is
no distinction between Inter-Affiliate Trades entered between
Canadian and non-Canadian affiliates. At this stage, it appears as
though the New Trade Reporting Jurisdictions are not following the
lead of Manitoba, Ontario or Quebec.
That being said, we expect to see the finalized amendment
published by the New Trade Reporting Jurisdictions in the next few
weeks and any uncertainty with respect to the reporting of
Inter-Affiliate Trades should be resolved shortly.
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guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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