Canadian securities commissions have laid out rules in regard to seeking recognition as a clearing agency (or an exemption from the recognition requirement) under local rules.
They have also explained ongoing requirements for recognised clearing agencies that act as central counterparties, central securities depositories or securities settlement systems.
The Ontario Securities Commission (OSC), Quebec's Autorité des marchés financiers (AMF) and the Manitoba Securities Commission’s proposed requirements are generally based on the Principles for Financial Market Infrastructures (PFMI).
The PFMI contains international standards for payment, clearing and settlement systems.
“The Canadian regulators note that implementation of the principles is an integral part of their efforts to develop a comprehensive regulatory framework for the trading of derivatives in Canada and is crucial to satisfying Canada's G20 commitments for OTC derivatives market regulatory reforms,” said Alix d'Anglejan-Chatillon of Stikeman Elliott LLP in a report on the rules.
Securities regulators in British Columbia, Alberta, Saskatchewan, New Brunswick and Nova Scotia are also all aiming to create a similar rule.
