Québec Regulator Announces Roundtable for Proposed Derivatives Regulation

The draft aims to create a business conduct regime for regulating dealers and advisers in OTC derivatives.

On Tuesday Québec‘s Autorité des marchés financiers (AMF) announced it would hold a roundtable on September 12, 2018. The meeting aims to discuss draft regulations proposed by the Canadian Securities Administrators (CSA). Stakeholders with different perspectives will attend the roundtable.
The meeting will revolve around two draft regulations. The first focuses on improving business conduct by dealers and advisers in the over-the-counter (OTC) derivatives market. The second looks at regulation surrounding the registration of market participants. Derivatives are financial securities with a value that is reliant upon or derived from an underlying asset or group of assets.

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Protecting against market abuse

The CSA is an organization which represents Canada’s securities regulators and aims to improve, coordinate, and harmonize regulation of the country’s capital markets. In a statement released earlier this month, the organization said it split the regulation into two versions so both dealers and advisers will be held to certain standards. The aim of the regulation proposed by CSA is to create a uniform approach to derivatives business conduct regulation in Canada. It plans to achieve this by promoting consistent protections for market participants.

The CSA Chair and President and CEO of the AMF, Louis Morisset, said: “the proposed rules are an important milestone for Canada. They will help protect against market abuse and together, the proposed business conduct instrument along with the proposed registration instrument, will align us with international standards.”

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Louis Morisset, Source: Canadian Securities Administrators
The AMF is responsible for financial regulation in the Canadian province of Québec. The organization regulates the province’s financial markets and assists consumers of financial products and services.

Following a market trend

The CSA’s goal to improve the standards of its derivatives market is in-line with the current industry trend. In March, regulators in Hong Kong issued a joint consultation paper in an attempt to enhance the regulatory regime of OTC derivatives. The European Supervisory Authorities Authority also proposed changes to its OTC Derivatives Regulation.


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