April 8, 2021
Introduction
This notice provides an update on work being done by the Canadian Securities Administrators (CSA or we) regarding harmonized monitoring and review of data from derivatives trade repositories, and global developments relating to margin and collateral requirements for over-the-counter derivatives that are not centrally cleared (Margin Requirements).
Background
The CSA published CSA Staff Notice 95-301 Margin and Collateral Requirements for Non-Centrally Cleared Derivatives on August 22, 2019 specifying the reasons why the CSA decided to delay proposing a rule to implement Margin Requirements. We also committed to monitor global developments and implement a harmonized monitoring process to review the data from derivatives trade repositories to inform our future plans relating to the implementation of Margin Requirements.
Global Developments
In April 2020, the Basel Committee on Banking Supervision and the Board of the International Organization of Securities Commissions extended the timeline to phase in the implementation of the collateral and margin requirements to September 2022.[1]
Harmonized Monitoring Process
The CSA implemented a harmonized monitoring process involving current data from derivatives trade repositories.The most recent review found no material changes in the findings from a year ago. We will continue to monitor and review the data for any material changes.
Plan for Implementation of Margin Requirements
After completing a review of derivatives trade data, the CSA has decided to further delay the publication for comment of a rule to implement Margin Requirements and does not believe this will result in increased systemic risk to Canadian financial markets or participants. We will provide an update when we believe changes in the results from the harmonized monitoring process or circumstances warrant the continuation of work to implement Margin Requirements.
Questions
Please refer your questions to any of:
| Kevin Fine Co-Chair, CSA Derivatives Committee Director, Derivatives Branch Ontario Securities Commission 416-593-8109
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Corinne Lemire Co-Chair, CSA Derivatives Committee Director, Market Data Intelligence Autorité des marchés financiers 514-395-0337, ext. 4491 corinne.lemire@lautorite.qc.ca
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| Janice Cherniak Senior Legal Counsel Alberta Securities Commission 403-355-4864 janice.cherniak@asc.ca
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Michael Brady Deputy Director, CMR British Columbia Securities Commission 604-899-6561
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| Paula White Deputy Director, Compliance and Oversight Manitoba Securities Commission 204-945-5195
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Wendy Morgan Deputy Director, Securities Financial and Consumer Services Commission (New Brunswick) 506-643-7202
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| Abel Lazarus Director, Corporate Finance Nova Scotia Securities Commission 902-424-6859
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Derek Maher Legal Counsel Securities Division Financial and Consumer Affairs Authority of Saskatchewan 306-787-5867
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[1] Margin requirements for non-centrally cleared derivatives, https://www.bis.org/bcbs/publ/d499.pdf