compliance puzzle

The Canadian Securities Administrators (CSA) are proposing revisions to derivatives rules that would narrow the application of mandatory central counterparty (CCP) clearing requirements.

In a notice published today, Sept. 3, the CSA sets out proposed changes to derivatives clearing rules that were adopted in the wake of the financial crisis, as part of a broader effort to curb systemic risk and enhance oversight of the global derivatives markets.

The CSA’s rules are designed to reduce counterparty risk in the over-the-counter (OTC) derivatives market by requiring certain firms to clear through a CCP.

The proposals, out for a 90-day comment period ending Dec. 2, aim to address industry feedback on the types of firms that are required to clear OTC derivatives through a CCP. They would also refine the types of products that must be centrally cleared.