CSA – Proposed amendments to mandatory central counterparty clearing of derivatives

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CSA – Proposed amendments to mandatory central counterparty clearing of derivatives

Letter Summary:

The CAC submitted comments on the CSA’s consultation regarding proposed amendments to National Instrument 94-101 related to mandatory central counterparty clearing of derivatives.

The proposed amendments to National Instrument 94-101 aim to update the list of mandatory clearable derivatives to reflect the transition to a new interest rate benchmarks regime based on overnight risk-free interest rate benchmarks. Specifically, the Proposed Amendments reflect the cessation of certain inter-bank offered rates (IBORs) and the Canadian dollar offered rate (CDOR) interest rate benchmarks. The Proposed Amendments also contemplate adding credit default swaps (CDS) referencing certain indexes as mandatory clearable derivatives.

Overview of the Council’s Comments: