Canada's securities regulators are seeking feedback on a proposed framework for the calculation and exchange of margin and collateral relating to non-centrally cleared derivatives.
The Canadian Securities Administrators (CSA) on Thursday published for comment a consultation paper outlining the proposal.
"This proposed framework is the CSA's initial step to develop rules that protect market participants entering into non-centrally cleared derivatives by addressing counterparty risk," says Louis Morisset, chair of the CSA and president and CEO of the Autorité des marchés financiers.
"The policy recommendations in this proposed framework are broadly consistent with international standards and substantially harmonized with the Office of the Superintendent of Financial Institutions' margin requirements for federally regulated financial institutions," he adds.
The consultation paper continues Canadian regulators' efforts to implement regulatory oversight of the over-the-counter derivatives market in Canada, in response to the regulatory reform commitments made by leaders of the G20 countries, the CSA says.
The consultation paper can be found on CSA members' websites. The comment period is open until Sept. 6.