On Jun. 6, C-TMX proposed rules on voluntary withdrawal liability.
C-TMX, CDCC, CSA Que published a request for comments on amendments to CDCC Rule A-1A09, re voluntary withdrawal and the limited liability of clearing members.
Makes minor adjustments to CDCC Rule A-411 to consolidate the definition of default management period and align it with the DMP provisions of its Operations Manual.
Proposed Amendment
Amendments to CDCC rules to limit withdrawing clearing members’ exposure to one default management period (DMP) following the closing of outstanding positions.
Voluntary withdrawal of clearing members during a DMP and potential liability to CDCC
Specifies that if withdrawal becomes effective while a DMP is ongoing, it will be postponed and become effective after end of DMP, when obligations to CDCC satisfied.
Clarifies that withdrawing member's liability to CDCC will be limited to the obligations arising from the DMPs ongoing while the member has outstanding positions at CDCC.
Amendments also consolidate in CDCC rules all aspects of the definition of the DMP.
Notice includes red-lined version of the proposed amendments starting on pg. 6.
Consultation
Comments on the proposed amendments must be submitted before Jul. 5, 2024.
Jun. 6, 2024 CSA OSC Rule Publication
On Jun. 6, 2024, CSA OSC published proposal in OSC Bulletin, comments Jul. 5, 2024.
Oct. 2024 CAN CDCC Self-Certification
On Oct. 17, 2024, CAN CDCC reported proposed amendments have been self-certified.
Set to come into force and to be incorporated on Oct. 24, 2024, after market close.
Oct. 2024 CSA OSC Bulletin Approval
On Oct. 17, 2024, CSA OSC published commission approval of CDCC rule proposal.
Regulators
CAN CDCC; CSA OSC; CSA Que; C-TMX
Entity Types
B/D; Bank; Depo
Reference
CSA OSC: Bul. Vol. 47 No. 42 p. 8258, 10/17/2024; Vol. 47 No. 23 p. 4852, 6/6/2024; CSA Que: Bul. Vol. 21 No. 22 p. 250, 6/6/2024; CDCC: Nt 2024-136, 10/17/2024; Nt 076-24, 6/5/2024; C-TMX: Cir 067-24, 6/5/2024; Citation: *CDCC Rule* A-1A09, A-411;
