CSA to host roundtable on derivatives rules

The Canadian Securities Administrators (CSA) will be holding a roundtable to update the investment industry on the status of its long-running work to develop conduct rules for the derivatives market.

The initiative, which has its roots in the global regulators’ response to the financial crisis, started almost 10 years ago with a consultation paper that was issued in early 2013, proposing a new registration and conduct regime for the Canadian derivatives markets.

Now, with the CSA finally on the verge of adopting new conduct rules for the over-the-counter (OTC) derivatives market, the regulators will be holding a virtual roundtable to examine implementation, compliance and regulatory issues associated with the new regime.

Among other things, the proposals aim to set 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.

They are also intended to bring Canada’s rules in line with global standards, to provide investor protection, and to foster investor confidence.

The CSA announced that it will hold an event on Sept. 28 from 10 a.m. to noon ET featuring two sessions focused on the rules. One is an industry panel to examine both buy-side and sell-side reactions to the latest proposals, which were published in January for a third comment period. The other session will be a regulatory panel that will provide an overview of the regulators’ implementation plans and an update on other planned derivatives rules reforms.

The industry panel includes representatives from TD Bank, National Bank of Canada, the Portfolio Management Association of Canada (PMAC), and the Ontario Teachers’ Pension Plan.

The regulatory panel will include speakers from the Alberta, British Columbia and Ontario securities commissions, along with the National Futures Association.

The panels will be moderated by Kevin Fine, director of the Ontario Securities Commission’s (OSC) derivatives branch, and Dominique Martin, director, oversight of trading activities, at Quebec’s Autorité des marchés financiers (AMF).

James Langton

James is a senior reporter for Advisor.ca and its sister publication, Investment Executive. He has been reporting on regulation, securities law, industry news and more since 1994.