The Participating Jurisdictions of the Canadian Securities Administrators (CSA), Alberta, Saskatchewan, Manitoba, Ontario, Québec, New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland and Labrador, Yukon, Nunavut and Northwest Territories (the Participating Jurisdictions) have published Multilateral Instrument 93-101 Derivatives: Business Conduct and its Companion Policy, Companion Policy 93-101 Derivatives: Business Conduct (collectively, the Business Conduct Rule).
The Business Conduct Rule will become effective September 28, 2024.
The goal of the Business Conduct Rule is to establish a robust market conduct regime tailored for the Over the Counter (OTC) derivatives markets and meets the standards of the International Organization of Securities Commissions (IOSCO), and is harmonized both within Canada and with the regulatory approach taken by most IOSCO jurisdictions with active derivatives markets. The Business Conduct Rule is intended to help protect participants in the OTC derivatives markets from unfair, improper, or fraudulent practices and will foster confidence in the Canadian financial markets and promote transparency, accountability, and responsible business conduct in the OTC derivatives market.
The Business Conduct Rule was developed over an extensive three-stage consultation process that included a public roundtable to consider various regulatory, implementation, and compliance matters. In response to comments received during the most recent consultation, the final rule was streamlined to address potential negative impacts on derivatives market liquidity and to reduce implementation burden by better enabling firms to leverage their existing compliance systems.
Multilateral Instrument 93-101 Derivatives: Business Conduct is available for download from the websites of participating CSA Jurisdictions.
For more information, please call Barbara Hendrickson at BAX Securities Law (647) 403-4606.
This publication is not intended to constitute legal advice. No one should act on it or refrain from acting on it without consulting with a lawyer. BAX does not warrant or guarantee the accuracy or currency or completeness of the publication. No part of this publication may be reproduced without the prior written permission of BAX Securities Law.
