Securities regulators have approved rule amendments that give clearing agency CDS Clearing and Depository Services Inc. the authority to deal with a crisis.

The Ontario Securities Commission (OSC) has approved proposed changes to CDS’ rules, granting it emergency authority.

The amendments empower the firm’s management to take necessary action “to ensure the safe, fair and efficient operation of its systemically important clearing operations”.

“In emergencies, time is of the essence and often may require urgent immediate action,” CDS said in its proposals, which give the clearing agency flexibility to act to avoid or mitigate harm to CDS, the industry, or the Canadian capital markets.

The changes also bring its rules into line with global reforms designed to ensure the safety and stability of critical components of financial market infrastructure, such as clearing and settlement firms.