Canadian Securities Regulators Publish Coordinated Blanket Orders To Provide Temporary Exemptions From Certain Derivatives Data Reporting Requirements

The Canadian Securities Administrators (CSA) today published Coordinated Blanket Order 96-932 Re Temporary Exemptions from Certain Derivatives Data Reporting Requirements (the Blanket Order). Every member of the CSA is implementing the relief through a local blanket order.

On July 25, 2024, the CSA published amendments to trade reporting rules for over-the-counter derivatives that will take effect on July 25, 2025. Among other changes, the amendments will reduce regulatory burden for certain market participants, referred to as end-users. The Blanket Order takes effect today to provide immediate exemptions for end-users to benefit from these regulatory burden reductions prior to the effective date of the amendments.

The Blanket Order provides end-users with an exemption from reporting valuation data and an extension to reporting deadlines and will result in substantively CSA-harmonized exemptions for commodity derivatives and inter-affiliate derivatives between end-users.

Ten years of derivatives trade reporting

Today marks the 10th year of derivatives trade reporting in Canada. This reporting improves transparency in the derivatives market and is essential for effective regulatory oversight, including the ability to identify and address systemic risk and potential market abuse. The CSA’s recent amendments to the trade reporting rules will streamline and internationally harmonize derivatives data reporting and improve its effectiveness and efficiency.

The CSA, the council of the securities regulators of Canada’s provinces and territories, co-ordinates and harmonizes regulation for the Canadian capital markets.