Canadian Securities Regulators Propose Amendments to Enhance Derivatives Data Reporting

Members of the Canadian Securities Administrators (CSA) published for comment proposed amendments designed to streamline and internationally harmonize over-the-counter derivatives data reporting. The amendments are expected to reduce the complexity of market participants' reporting systems and decrease ongoing operational and compliance costs while improving the consistency and quality of the data available to regulators and the public.

"The global harmonization of data reporting standards represents a significant milestone that would reduce regulatory burden for many market participants who report derivatives transactions around the world,"said Louis Morisset, CSA Chair and President and CEO of the Autorité des marchés financiers."At the same time, improvements to data quality and consistency will enable us to more effectively identify risks and vulnerabilities to our financial markets and strengthen our ability to detect inappropriate activity that can harm investors."

The proposed changes update the data elements to be reported to align with North American and global standards developed by the Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO).

In addition to harmonizing data reporting standards, other proposed amendments include:

• ​updated requirements for trade repository governance, operations and management of risk to align with international standards;

• ​improvements designed to enhance data accuracy and consistency, such as data validation and verification, similar to other global regulators;

• ​increased harmonization among the CSA, such as a harmonized threshold in the commodity derivatives exclusion for non-dealers;

• ​new technical manuals that provide clarity regarding the format and values for reporting.