The Ontario Securities Commission (OSC) released a request for comment on June 9th relating to derivatives data reporting requirements in OSC Notice and Request for Comment – Proposed Amendments to OSC Rule 91-507 Trade Repositories and Derivatives Data Reporting (and its companion policy) and 91-506CP Derivatives: Product Determination (91-506CP). Similar but separate proposals were also released by the Manitoba Securities Commission, the Autorité des marchés financiers and the securities regulators in other Canadian jurisdictions.
The purpose of the proposed amendments are to harmonize over-the-counter derivatives data reporting standards in order to align with global standards that have been developed by the Committee on Payments and Market Infrastructures and the International Organization of Securities Commissions (IOSCO). These standards include the data elements that need to be reported and their definition, format, and usage. Such harmonized data elements include a unique identifier for each transaction and a unique identifier for each product. Certain structural changes will also be made including a more flexible reporting hierarchy for non-dealers, and a harmonized threshold in the commodity derivatives exclusion for non-dealers. Other proposed amendments include improvements to enhance data accuracy (e.g. data verification). Updated requirements for trade repositories are also proposed, and new technical manuals have been drafted to assist market participants with the new reporting requirements. The proposed changes to 91-506CP (the “product determination changes”) clarify that, similar to other financial commodities that are not excluded from the product determination rule, certain crypto assets that are financial commodities also do not fall under the relevant exclusion of the product determination rule.
Comments are due on the proposals by early October.
June 30, 2022