A third comment period is underway on proposed amendments to modernize and simplify derivatives-related requirements, the Ontario Securities Commission said on Thursday.
The proposal, when finalized, will form Canadian Securities Administrators (CSA) National Instrument 93-101 Derivatives: Business Conduct, setting conduct standards for derivatives market players that are similar to the requirements in securities markets. These include standards for fair dealing, addressing conflicts of interest, disclosure and record keeping.
The initiative has roots in global regulators’ response to the financial crisis of 2008–09.
A release on Thursday said the Canadian Investment Regulatory Organization made revisions to the proposed amendments set out in two previous publications so as to introduce changes and address concerns received by commenters and the CSA.
The revisions also incorporate the proposed amendments in the most recent version of the Investment Dealer and Partially Consolidated Rules (formerly IIROC rules), which came into effect at the beginning of the year.
The revised proposed amendments are necessary to ensure consistency with the anticipated final version of the national instrument, the release said.
The comment period ends on Aug. 14.