The CSA has adopted amendments to the Companion Policy (CP 24-102) to National Instrument 24-102 Clearing Agency Requirements (NI 24-102) effective June 3, 2016. The amendments are intended to help clearing agencies develop recovery plans before the end of 2016.
On December 3, 2015, the CSA published for comment proposed amendments to CP 24-102. The amendments to CP 24-102 provide supplementary guidance on the recovery and orderly winding-down planning of domestic recognized clearing agencies which are also subject to oversight by the Bank of Canada. These Canadian authorities expect those clearing agencies to meet the standards related to recovery and orderly wind-down set out in a report published by the Bank of International Settlements Committee on Payments and Market Infrastructure entitled Principles for Financial Market Infrastructures. The supplementary guidance can be found in Annex 1 to CP 24-102.
Regular readers of our blog will recall that NI 24-102 came into force in February 2016 and its objective is to impose requirements on recognized clearing agencies that operate as a central counterparty, central securities depository or securities settlement system. NI 24-102 provides a framework for clearing agency recognition, including making an application and completing the initial filings of information (including initial financial statements), which are based on international standards applicable to financial market infrastructure.
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