Following a rather uneven passing of the EMIR trade-reporting deadline earlier this year, the Canadian Securities Administrators (CSA) has announced that it will extend key commencement dates for OTC derivatives trade reporting for market participants and clearing agencies, according to a CSA statement.
Large OTC Volumes Across Asset Classes Necessitates Extensions
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Indeed, the Canadian regulatory body will begin enforcement on October 31, 2014 for all clearing agencies and qualified dealers in over-the-counter (OTC) derivatives trades. In addition, all remaining market participants of these instruments will yield to an extension of June 30, 2015 – this initiative should effectively curb the most prevalent issue at the present, i.e. an overabundance of volumes across OTC derivatives.
Currently, no single trade repository can effectively deal with or accept OTC derivatives of varying asset classes, consistent with Canadian regulations. According to the CSA, “This extension will provide additional time for trade repositories currently engaged in the designation or recognition process to accept market participants onto their systems and develop the reporting infrastructure necessary to comply with provincial trade reporting rules. Staff in Ontario, Quebec, and Manitoba will be recommending amendments to Rule 91-507: Trade Repositories and Derivatives Data Reporting, to reflect the extension of the trade reporting obligation.”