CSA Notice and Request for Comment Proposed National Instrument 94-101 Mandatory Central Counterparty Clearing of Derivatives and Proposed Companion Policy 94-101CP Mandatory Central Counterparty Clearing of Derivatives

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CSA Notice and Request for Comment Proposed National Instrument 94-101 Mandatory Central Counterparty Clearing of Derivatives and Proposed Companion Policy 94-101CP Mandatory Central Counterparty Clearing of Derivatives

Letter Summary:

We agree with the stated goal to harmonize as much as possible the determination of mandatory clearable derivatives across all jurisdictions of Canada. We would like to stress the importance for participants located in Canada to be able to transact among provinces and territories pursuant to harmonized legislation. It is also important that our legislation be harmonized, to the extent possible, with the requirements of the other G20 countries. If parties to transactions are required to clear them in Canada through a central counterparty but are not required to do so elsewhere, it could lead to regulatory arbitrage opportunities.

Overview of the Council’s Comments:

The Canadian Advocacy Council for Canadian CFA Institute Societies (the CAC) appreciates the opportunity to comment on the Proposed National Instrument and wishes to make the following remarks relating to the proposed rules for mandatory central
counterparty clearing for certain derivatives.