Derivatives Business Conduct Rule Coming into Force this Month; CSA Publishes FAQs

The Canadian Securities Administrators (CSA) recently published CSA Staff Notice 93-302 Frequently Asked Questions About National Instrument 93-101 Derivatives: Business Conduct (FAQs), which clarifies how certain requirements under National Instrument 93-101 Derivatives: Business Conduct Rule (NI 93-101) should be implemented and responds to questions from market participants. NI 93-101 comes into force on September 28, 2024.

As we reported in our October 2023 Update, Canadian Securities Administrators Publish Final Business Conduct Rules for Derivatives Firms, there will be a five-year transition period to afford derivatives firms time to amend existing derivative transaction contracts, correctly classify counterparties and make other adjustments required by NI 93-101. The transition period will expire on September 28, 2029.

Temporary exemptions from certain provisions of NI 93-101 will apply for derivatives dealers and advisers. See our July 2024 Update, Canadian Securities Regulators Announce Temporary Exemptions For Derivatives Dealers and Advisers.

For further information regarding compliance with NI 93-101, please contact any member of our Structured Finance and Derivatives Group.