March 29, 2019

Canadian Derivatives Regulation and Cross-Border Impact

Post-crisis regulatory reform of the over-the-counter derivatives markets by the Leaders of the G-20 has been characterized by calls for cross-border harmonization.1 However, despite significant process through collaboration by national regulators and various comparability and equivalence determinations among such regulators, inconsistency in global over-the-counter derivatives regulation has resulted in additional complexity and challenges for derivatives users. The panel will discuss regulatory reform of the over-the-counter derivatives markets in Canada and the United States, and challenges faced by derivatives users who are subject, either directly or indirectly through their counterparties, to regulations imposed by securities and derivatives regulators in Canada and the United States.

At the Pittsburgh summit in 2009, the G-20 Leaders committed to a fundamental reform of the over-thecounter derivatives markets, which they alleged played a role during the global financial crisis. The G-20 Leaders’ objectives were to make the over-the-counter derivatives markets safer by mitigating systemic risk and providing additional transparency. These objectives resulted in regulatory proposals, including central clearing of standardized over-the-counter derivatives to reduce counterparty credit risk, higher capital requirements, margin requirements, and trade reporting requirements.

Premium Content For:
  • Business Law Section
  • CL1903SPR - 2019 Business Law Section Spring Meeting