On Mar. 14, 2025, CSA BC issued notice on proposed amendments to NI 94-101 on Mandatory central counterparty clearing of derivatives; comments due May 14, 2025.
On Sep. 19, CSA OSC proposed changes to clearing of derivatives.
CSAs proposed amendments to mandatory central counterparty clearing of derivatives.
AmendNational instrument (NI) NI 94-101, Appendix A to update list of mandatory clearable derivatives to reflect transition to a new interest rate benchmarks regime.
New benchmarks regime based on overnight risk-free interest rate benchmarks.
These proposed amendments reflect cessation of certain inter-bank offered rates (IBORs) and the Canadian dollar offered rate (CDOR) interest rate benchmarks.
Additionally, these proposed amendments contemplated the addition of credit default swaps (CDS) referencing certain indexes as mandatory clearable derivatives.
List of Mandatory Cleared Derivatives
Remove mandatory central counterparty clearing of certain interest rate swap, forward rate agreements (FRA) referencing listed interest rate benchmarks in Appendix A.
The Canadian dollar (CAD) CDOR, United States dollar (USD) LIBOR, British pound (GBP) LIBOR, and the Euro (EUR) Euro Overnight Index Average (EONIA).
Derivatives removed in each of fixed-to-float swap, basis swap, OIS, and FRA classes.
Add mandatory central counterparty clearing OIS referencing USD SOFR with maturity 7 days to 50 years; EUR Euro Short-Term Rate (€STR) maturity 7 days to 3 years.
For liquidity and international harmonization, expand maturity of OIS referencing GBP SONIA subject to mandatory clearing to include maturity between 7 days to 50 years.
Given the significant liquidity for the reference period, proposed to expand maturity of OIS referencing CAD CORRA to include maturity between 7 days to 30 years.
Addition of OTC Derivatives
Added following classes to list of mandatory clearable derivatives in Appendix A.
Proposed to add Fixed-to-float interest rate swaps referencing Australian dollar (AUD) Bank Bill Swap rates (BBSW) with a maturity including 28 days to 30 years.
CDS index CDX.NA.IG with tenors of 5, 10 years (Series 46, all subsequent Series).
The CDS index CDX.NA.HY with a tenor of 5 years (Series 46, all subsequent Series).
Also, CDS index iTraxx Europe with tenor of 5 years (Series 45, all subsequent Series).
CSA Que Publications
CSA Que published Regulatory notice, CSA notice of consultation; Reg. amendment Regulation 94-101 respecting mandatory central counterparty clearing of derivatives.
Also, Amendment to the general policy relating to Reg 94-101 on such clearing.
Published in Bulletin, p. 557 of securities, derivatives regulations, general instructions.
Consultation
Comments due in writing by Dec. 19, 2024.
Jan. 2025 CSA Que Consultation Comments
On Jan. 10, 2025, CSA Que published comments received during the rule consultation.
On Mar. 14, 2025, CSA BC issued notice on proposed amendments to NI 94-101 on Mandatory central counterparty clearing of derivatives; comments due May 14, 2025.
