Amendments to swap data reporting rules are expected to be implemented by the Commodity Futures Trading Commission (CFTC) in December 2022. The Canadian Securities Administrators (CSA) have issued guidance to market participants for the interim transition period where reporting counterparties will be subject to new global standards in some jurisdictions but not others.

The harmonized international derivatives data standards developed by the Committee on Payments Market Infrastructure led by the Bank of International Settlements and the International Organization of Securities Commissions (CPMI-IOSCO) are currently in the process of being implemented by securities regulators globally and are expected to be implemented by the CSA jurisdictions into their derivatives trade reporting rules (Trade Reporting Rules) in 2024. We previously wrote about proposed amendments to the Trade Reporting Rules which were published earlier this year by the CSA on June 9, 2022 (CSA Proposed Amendments), and which included updated data elements to align with the recommended CPMI-IOSCO global standards. Due to the difference in timing of implementation of the CFTC and the CSA amended requirements, there will be a transition period (Transition) during which certain reporting counterparties will be subject to revised reporting requirements of the CFTC but not in Canada. CSA Staff Notice 96-303 Derivatives Data Reporting Transition Guidance provides guidance to market participants to facilitate reporting during the Transition.

Transition Guidance

Derivatives data that is reportable under the current Trade Reporting Rules, but is not reportable under the CFTC amendments (such as the jurisdiction of a local counterparty), will continue to be reportable under the Trade Reporting Rules during the Transition period.

During the Transition period, provided the designated or recognized trade repository supports the reporting of revised data elements required by the CFTC:

  • market participants may comply with Trade Reporting Rules if they report data according to a CFTC data element that is comparable to the relevant data element in in Appendix A to the Trade Reporting Rules; and
  • derivatives data that is reportable only under CFTC amendments but not under the current Trade Reporting Rules, is not reportable unless market participants choose to report this data if the relevant data element has been proposed in the CSA Proposed Amendments (such as daily margin data).

Designated or recognized trade repositories are not required to support the option for market participants to be able to report revised data elements. As such it is recommended that market participants contact their trade repositories to understand their approach to the different reporting requirements as a result of the timing of the implementation the CFTC amendments.

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.