After almost three years of consultation, an Ontario Securities Commission ruling, which will increase transparency in the over-the-counter (OTC) derivatives markets, was published Thursday.
Adhering to internationally-agreed upon market reforms, the new regulation, discussed with the Canadian Securities Administrators (CSA) since 2010, will detect possible systemic risk and market abuse in the OTC derivatives markets. Trade repository and derivatives data reporting requirements will increase transparency.
If the Ontario's finance minister approves or does not take any other action on the regulation by December 16, the rules will come into force on December 31, and officially take effect in July 2014. An OSC seminar in January is scheduled to educate market participants on the new reporting requirements.
OSC is expected to follow-up next month with mandatory clearing of specific OTC derivatives and rules to safeguard customer assets. In the spring, it says it will release registration requirements for derivative dealers and market participants.
The Autorité des marchés financiers (AMF) and the Manitoba Securities Commission also published similar rulings on Thursday.