CIRO revises derivatives rules for dealers

The Canadian Investment Regulatory Organization (CIRO) is adopting the first phase of rule changes to modernize its requirements for derivatives dealers.

The revisions come in the wake of efforts by the Canadian Securities Administrators (CSA) to beef up its derivatives conduct and registration requirements — a long-running project with roots in the global financial crisis. The efforts prompted CIRO to review its own rules to ensure that they remain harmonized with the CSA’s new rules.

In addition to conforming with the CSA’s rules, CIRO said its revisions aim to clarify the application of the core regulatory obligations to securities, listed derivatives and over-the-counter derivatives; and to eliminate any regulatory inconsistencies between securities and derivatives.

The reforms to the self-regulatory organization’s derivatives rules are being undertaken in two stages, with the first phase covering all the rules except margin requirements; the second phase of the project will address margin rules.

In a notice, CIRO said the CSA has approved the first stage of amendments, which will take effect on Sept. 28.

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.