The CSA (Canadian Securities Administrators) has published a new blanket order relating to exemptions from certain derivatives data reporting requirements.
Background
For OTC derivatives between two counterparties, the reporting requirements under current Trade Reporting Rules may apply to one or both parties.
The Trade Reporting Rules are receiving “Amendments” which go live on 25th July, 2025.
These amendments will reduce the regulatory burden for counterparties through certain exemptions.
Summary
The Canadian Securities Administrators (CSA) is creating harmonised exemptions for their Trade Reporting Rules.
These exemptions aim to reduce the regulatory burden for counterparties before the “Amendments” go into force.
The exemptions are:
End-user reporting of creation data – an exemption to extend their time to report creation data but by no later than the end of the second business day following the execution date of a transaction.
End-user reporting of life-cycle data – an exemption to extend their time to report life-cycle event data but by no later than the end of the second business day following the execution date of a transaction.
End-user reporting of valuation data – an exemption to not report valuation data.
End-user reporting of commodity derivatives – an exemption to not report commodity derivatives below a specified notional threshold; exemption only applies in Ontario, Manitoba and Quebec.
End-user reporting of derivatives between affiliated entities – an exemption to not report a transaction where both parties are affiliated entities.
Next Steps
The exemptions are effective from 31st October, 2024 and will expire on 25th July, 2025 which is the date for the Amendments going into force, unless extended by CSA jurisdictions
Further information can be found here - https://www.osc.ca/en/securities-law/instruments-rules-policies/9/96-932/csa-notice-regarding-coordinated-blanket-order-96-932-re-temporary-exemptions-certain-derivatives