Canada Derivatives Trade Reporting

Canada Trade Reporting Requirements

What has driven this regulation?

In order for Canada to meet its G20 commitments made in 2009 to improve oversight and enhance transparency in over-the-counter (OTC) derivatives markets, there has been an ongoing coordination of efforts by Canadian securities regulators to implement reforms. These efforts have resulted in the adoption of harmonized derivatives rules across Canada that will require the reporting of transaction data related to OTC derivatives trades executed with clients (“counterparties”) regardless of the company's jurisdiction (the “Canadian Reporting Requirements”). The requirement to report trades to a designated trade repository provides the regulatory authorities with transparency and access to aggregate derivatives trade data in order to facilitate the identification and mitigation of systemic risk. Trade repositories are regulated entities that centrally collect and maintain the records of all derivatives trade data.

The initial compliance date for reporting for British Columbia, Alberta, Saskatchewan, New Brunswick, Nova Scotia, Newfoundland and Labrador, Prince Edward Island, Northwest Territories, Yukon and Nunavut was July 29, 2016.

Mandatory trade reporting entered into force in 2014 for Ontario, Manitoba and Quebec.

At HSBC, we are adapting our systems and procedures to comply with these requirements and we are committed to helping our clients understand these new rules.

Last updated: 3 August 2016