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TMCNet:  Canadian Securities Regulators Seek Comment on Model Rules Relating to Derivatives: Product Determination and Derivatives Trade Repositories and Data Reporting

[December 06, 2012]

Canadian Securities Regulators Seek Comment on Model Rules Relating to Derivatives: Product Determination and Derivatives Trade Repositories and Data Reporting

TORONTO, Dec. 6, 2012, 2012 (Canada NewsWire via COMTEX) -- The Canadian Securities Administrators (CSA) today published CSA Staff Consultation 91-301 requesting comment for Model Provincial Rule Derivatives: Product Determination (Product Determination Rule) and Model Provincial Rule Trade Repositories and Derivatives Data Reporting (TR Rule), collectively referred to as the "Model Reporting Rules".

The proposed Model Reporting Rules: -- define the types of contracts or instruments that are required to be reported to a trade repository; -- establish requirements for the operation of trade repositories; and, -- establish requirements for transaction data reporting.

The reporting of derivatives transactions to trade repositories is one of the most important components of the G-20 commitments to global reform of the over-the-counter (OTC) derivatives markets. Since November 2010, the CSA has published for comment a series of Consultation Papers that recommend proposals to regulate the OTC derivatives markets in Canada. These Model Reporting Rules mark the first policy action resulting from the consultation and will pave the way for other future rules that are essential to the regulation of OTC derivatives transactions and the improvement of market transparency.

"Trade repositories and the requirement to report OTC derivatives contracts to trade repositories will improve transparency in the derivatives markets, mitigate systemic risk and protect against market abuse," said Bill Rice, Chair of the CSA and Chair and CEO of the Alberta Securities Commission.

The Product Determination Rule identifies the contracts or instruments that are required to be reported to a trade repository. The TR Rule describes requirements for the operation and ongoing regulation of designated or recognized trade repositories, and the mandatory reporting of derivatives transaction data by market participants. In addition to these Model Reporting Rules, a number of future proposed model rules will be published for comment that relate to the key areas addressed by the Consultation Papers. Together, all the model rules will formulate a proposed regime for the regulation of the OTC derivatives markets. The model rule process is further described in CSA Staff Consultation 91-301, which accompanies the Model Reporting Rules.

The proposed Model Reporting Rules can be found on CSA members' websites and the comment period is open until February 4, 2013.

The CSA, the umbrella organization comprising the securities regulators of Canada's provinces and territories, coordinates and harmonizes the regulation the Canadian capital markets.

SOURCE: Canadian Securities Administrators To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/December2012/06/c6907.html SOURCE: Canadian Securities Administrators Carolyn Shaw-Rimmington Ontario Securities Commission 416-593-2361 Mark Dickey Alberta Securities Commission 403-297-4481 Sylvain Theberge Autorite des marches financiers 514-940-2176 Richard Gilhooley British Columbia Securities Commission 604-899-6713 Ainsley Cunningham Manitoba Securities Commission 204-945-4733 Wendy Connors-Beckett New Brunswick Securities Commission 506-643-7745 Tanya Wiltshire Nova Scotia Securities Commission 902-424-8586 Dean Murrison Financial and Consumer Affairs Authority of Saskatchewan 306-787-5879 Janice Callbeck PEI Securities Office Office of the Attorney General 902-368-6288 Doug Connolly Financial Services Regulation Div. Newfoundland and Labrador 709-729-2594 Rhonda Horte Office of Yukon Superintendent of Securities 867-633-7969 Louis Arki Nunavut Securities Office 867-975-6587 Donn MacDougall Northwest Territories Securities Office 867-920-8984

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