The Ontario Securities Commission (OSC) doesn’t plan to enforce compliance with the requirement that derivatives users report transactions with related firms, the regulator says in a notice published Monday.
New trade reporting obligations take effect on June 30, which require so-called end-users of derivatives (firms that are not derivatives dealers or clearing agencies) to start complying with new trade reporting requirements. The rules include requirements for companies to report trades with affiliated firms.
“Inter-affiliate reporting is important because it provides the OSC with information regarding the redistribution of risk between legal entities, highlighting important market activity and trends,” the OSC says in the notice.
However, the OSC is considering possible amendments to the trade reporting rules to reduce the frequency and data requirements for trade reporting of transactions between affiliates, the notice indicates.
The regulator is also considering amendments to permit the reporting of certain transactions between affiliates under the laws of foreign jurisdictions for trades that involve foreign affiliates.
These proposals will not be published before the June 30 reporting deadline, the notice indicates, so the “will not enforce compliance by end-users with inter-affiliate trade reporting requirements,” it says.