CSA Notice regarding Coordinated Blanket Order 96-932 Re Temporary Exemptions from Certain Derivatives Data Reporting Requirements
October 31, 2024 Introduction The Canadian Securities Administrators (the CSA or we) are publishing substantively harmonized exemptions from certain derivatives data reporting requirements under Manitoba Securities Commission Rule 91-507 Trade Repositories and Derivatives Data Reporting, Ontario Securities Commission Rule 91-507 Trade Repositories and Derivatives Data Reporting, Regulation 91-507 respecting Trade Repositories and Derivatives Data Reporting (Québec) and Multilateral Instrument 96-101 Trade Repositories and Derivatives Data Reporting (collectively, the Trade Reporting Rules).
Every member of the CSA is implementing the relief through a coordinated local blanket order (collectively, the Blanket Order). Although the outcome is the same in all CSA jurisdictions, the language of the Blanket Order issued by each province or territory may not be identical because each jurisdiction’s blanket order reflects certain differences among the Trade Reporting Rules and must fit within the authority provided in local securities legislation.
Background For over-the-counter (OTC) derivatives between two end-users, reporting requirements under the Trade Reporting Rules may apply to one or both end-users. Amendments to each of the Trade Reporting Rules published on July 25, 2024 (collectively, the Amendments) provide, among other things, end-users of OTC derivatives with certain intended reductions in regulatory burden under the Trade Reporting Rules. The Amendments will come into force on July 25, 2025.
Description of Blanket Order The purpose of the Blanket Order is to provide end-users with the temporary exemptions listed below from the Trade Reporting Rules to enable them to benefit from certain intended reductions in regulatory burden under the Amendments without having to wait until they come into force:
• End-user reporting of creation data This exemption provides a reporting counterparty that is not a qualified reporting counterparty, as defined in the Amendments, with an extended period of time to report creation data, which they must report no later than the end of the second business day following the execution date of a transaction. This exemption applies in all CSA jurisdictions.
• End-user reporting of life-cycle event data This exemption provides a reporting counterparty that is not a qualified reporting counterparty, as defined in the Amendments, with an extended period of time to report life-cycle event data, which they must report no later than the end of the second business day following the day on which the life-cycle event occurred. This exemption applies in all CSA jurisdictions.
• End-user reporting of valuation data This exemption exempts a reporting counterparty that is neither a derivatives dealer nor a recognized or exempt or reporting clearing agency or reporting clearing house, from reporting valuation data. This exemption applies in all CSA jurisdictions.
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End-user reporting of commodity derivatives This exemption exempts a reporting counterparty that is a local counterparty and is not a qualified reporting counterparty, each as defined in the Amendments, subject to certain conditions, from reporting commodity derivatives below a specified notional threshold. This exemption only applies in Ontario, Manitoba and Québec because Multilateral Instrument 96-101 Trade Repositories and Derivatives Data Reporting already provides for a substantively equivalent exclusion.
End-user reporting of derivatives between affiliated entities This exemption exempts a reporting counterparty from reporting a transaction where both parties to the transaction are not qualified reporting counterparties and are affiliated entities, each as defined in the Amendments. The term “affiliated entity” includes certain partnerships and trusts, subject to the terms of the Amendments. This exemption only applies in Ontario and Manitoba because Multilateral Instrument 96-101 Trade Repositories and Derivatives Data Reporting and the Autorité des marchés financiers’ Blanket Order n° 2015-PDG-0089 already provide for a substantively equivalent exclusion.
Effective Date and Term The Blanket Order is effective on October 31, 2024. It will cease to be effective on July 25, 2025, which is the date that the Amendments will come into force, unless extended by the CSA jurisdictions.
Questions If you have questions about this CSA Notice, please contact any of the following: Dominique Martin Greg Toczylowski Director, Derivatives Oversight Manager Autorité des marchés financiers Trading & Markets – Derivatives 514-395-0337, ext. 4351 Ontario Securities Commission dominique.martin@lautorite.qc.ca 416-593-8215 gtoczylowski@osc.gov.on.ca
Tim Reibetanz Senior Legal Counsel Trading & Markets – Derivatives Ontario Securities Commission 416-263-7722 treibetanz@osc.gov.on.ca
Abel Lazarus Director, Corporate Finance Nova Scotia Securities Commission 902-424-6859 abel.lazarus@novascotia.ca
Janice Cherniak Senior Legal Counsel Alberta Securities Commission 403-355-4864 janice.cherniak@asc.ca
Graham Purse Legal Counsel Securities Division Financial and Consumer Affairs Authority of Saskatchewan 306-787-5867 graham.purse2@gov.sk.ca
Leigh-Anne Mercier General Counsel Manitoba Securities Commission 204-945-0362 Leigh-Anne.Mercier@gov.mb.ca
Michael Brady Deputy Director, Capital Markets Regulation British Columbia Securities Commission 604-899-6561 mbrady@bcsc.bc.ca
Nick Doyle Legal Counsel – Securities Financial and Consumer Services Commission, New Brunswick 506-635-2450 nick.doyle@fcnb.ca
Manitoba Securi�es Commission COORDINATED BLANKET ORDER 96-932 Cita�on: Re Temporary Exemp�ons from Certain Deriva�ves Data Repor�ng Requirements October 31, 2024 Defini�ons 1. Terms defined in The Securities Act (Manitoba) (the Act), Na�onal Instrument 14-101 Definitions and Manitoba Securi�es Commission Rule 91-507 Trade Repositories and Derivatives Data Reporting (the TR Rule) have the same meaning in this Order.
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In this Order, each of the terms “affiliated en�ty” and “qualified repor�ng counterparty” has the same meaning as in the TR Amendments.
Background 3. On July 25, 2024, the Manitoba Securi�es Commission (the Commission) amended the TR Rule (the TR Amendments). 1 The TR Amendments come into force on July 25, 2025.
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The TR Rule provides that a repor�ng counterparty is required to report crea�on data rela�ng to a transac�on in no event later than the end of the business day following the execu�on of the transac�on. The TR Amendments provide that a repor�ng counterparty that is not a qualified repor�ng counterparty is required to report crea�on data no later than the end of the second business day following the execu�on of the transac�on.
The TR Rule provides that a repor�ng counterparty is required to report life-cycle event data in no event later than the end of the business day following the day on which the life-cycle event occurs. The TR Amendments provide that a repor�ng counterparty that is not a qualified repor�ng counterparty is required to report life-cycle event data no later than the end of the second business day following the day on which the life-cycle event occurs.
The TR Rule requires a repor�ng counterparty that is not a deriva�ves dealer or recognized or exempt clearing agency to report valua�on data quarterly. The TR Amendments provide that a repor�ng counterparty that is not a deriva�ves dealer or a recognized or exempt clearing agency is not required to report valua�on data.
The TR Rule provides that a local counterparty is not required to report deriva�ves data for a transac�on that involves a commodity deriva�ve, other than cash or currency, if the local counterparty is not a deriva�ves dealer or a recognized or exempt clearing agency, and if the local counterparty has less than $500,000 aggregate no�onal value, without ne�ng, under all its outstanding transac�ons at the �me of the transac�on including the addi�onal no�onal value related to that transac�on. The TR Amendments replace this exclusion with an exclusion that applies, subject to the terms of the TR Amendments, with reference to $250,000,000 aggregate month-end gross no�onal amount under all outstanding commodity deriva�ves.
1 htps://docs.mbsecuri�es.ca/msc/deriva�ves/en/item/521304/index.do
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The TR Rule provides that a repor�ng counterparty is not required to report deriva�ves data in rela�on to a transac�on if, at the �me the transac�on is executed, the counterpar�es to the transac�on are “affiliated companies” and neither counterparty is a deriva�ves dealer, recognized or exempt clearing agency, or affiliate thereof. The TR Amendments replace this exclusion with an exclusion that applies, subject to the terms of the TR Amendments, if the counterpar�es to the transac�on are affiliated en��es. The TR Amendments provide that the term “affiliated en�ty” includes certain partnerships, limited partnerships, and trusts, subject to the terms of the TR Amendments.
The Commission seeks to provide market par�cipants with the exemp�ons listed below to enable them to benefit from certain intended reduc�ons in regulatory burden under the TR Amendments without having to wait un�l they come into force.
Order End-user repor�ng of crea�on data 10. Considering that it would not be prejudicial to the public interest to do so, the Commission orders under subsec�on 20(1) of the Act that a repor�ng counterparty is exempt from repor�ng crea�on data rela�ng to a transac�on within the �me periods prescribed under sec�on 31 of the TR Rule, provided that:
(a) (b)
the repor�ng counterparty is not a qualified repor�ng counterparty, the repor�ng counterparty reports crea�on data no later than the end of the second business day following the execu�on date of the transac�on.
End-user repor�ng of life-cycle event data 11. Considering that it would not be prejudicial to the public interest to do so, the Commission orders under subsec�on 20(1) of the Act that a repor�ng counterparty is exempt from repor�ng life-cycle event data rela�ng to a transac�on within the �me periods prescribed under sec�on 32 of the TR Rule, provided that:
(a) (b)
the repor�ng counterparty is not a qualified repor�ng counterparty, the repor�ng counterparty reports life-cycle event data no later than the end of the second business day following the day on which the life-cycle event occurs.
End-user repor�ng of valua�on data 12. Considering that it would not be prejudicial to the public interest to do so, the Commission orders under subsec�on 20(1) of the Act that a repor�ng counterparty that is not a deriva�ves dealer or a recognized or exempt clearing agency is exempt from repor�ng valua�on data under sec�on 33 of the TR Rule.
End-user repor�ng exclusion for commodity deriva�ves 13. Considering that it would not be prejudicial to the public interest to do so, the Commission orders under subsec�on 20(1) of the Act that a local counterparty is exempt from a requirement under the TR Rule to report deriva�ves data rela�ng to a commodity deriva�ve, provided that:
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the local counterparty is not a qualified repor�ng counterparty,
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the aggregate month-end gross no�onal amount under all outstanding transac�ons in commodity deriva�ves of the local counterparty, and of each affiliated en�ty of the local counterparty that is a local counterparty in a jurisdic�on of Canada, other than under paragraph (b) of the defini�on of “local counterparty” as defined under Mul�lateral Instrument 96-101 Trade Repositories and Derivatives Data Reporting, excluding transac�ons with an affiliated en�ty, did not, in any calendar month in the preceding 12 calendar months, exceed $250 000 000,
the local counterparty begins to report deriva�ves data 180 days a�er the date that the local counterparty ceases to sa�sfy a condi�on under paragraphs (a) or (b), unless during that 180-day period the local counterparty again sa�sfies the condi�on.
End-user repor�ng exclusion for transac�ons with affiliated en��es 14. Considering that it would not be prejudicial to the public interest to do so, the Commission orders under subsec�on 20(1) of the Act that a repor�ng counterparty is exempt from repor�ng deriva�ves data under the TR Rule in rela�on to a transac�on if, at the �me the transac�on is executed, the counterpar�es to the transac�on are affiliated en��es and neither counterparty is a qualified repor�ng counterparty.
Effec�ve Date and Term 15. This Order comes into effect on October 31, 2024 and will cease to be effec�ve on July 25, 2025, unless extended by the Commission.
For the Commission:
______________________________ Chris Besko Director Manitoba Securi�es Commission