US agencies to clarify portion of Volcker rule regulations. The Federal Reserve Board, FDIC, OCC, and SEC announced a review of whether it would be appropriate and consistent with the Dodd-Frank Act to exempt collateralized debt obligations backed by trust preferred securities (TruPS CDOs) from the Volcker rule’s prohibition against the ownership of “covered funds” by depository banks. The agencies will address the matter by January 15, 2014. The agencies’ accounting staffs believe that, consistent with US GAAP, any actions by banks in January 2014 concerning TruPS CDOs that occur before the issuance of a bank’s December 31, 2013, financial reports should be considered when preparing those financial reports. (12/27/2013) Joint agency press release.
Canada’s OSC to hold seminar on new derivatives reporting rules. The Ontario Securities Commission announced the details for its January 15, 2014 information seminar on the reporting requirements for the new Derivatives Trade Repositories and Data Reporting rule. The reporting obligations for the OSC rule begin July 2, 2014. The seminar will cover four key areas: how to report transactions, end user obligations, tips for ensuring dealer compliance and reporting fields. (1/7/2014) OSC press release.
Canadian regulators propose rules for central clearing of derivatives. The Canadian Securities Administrators published for comment “CSA Staff Notice 91-303 - Proposed Model Provincial Rule on Mandatory Central Counterparty Clearing of Derivatives.” The proposed rule describes requirements for central counterparty clearing of over-the-counter derivatives transactions. Comments should be submitted by March 19, 2014. (12/19/2013) CSA press release.
OSC Investor Advisory Panel. The Ontario Securities Commission’s Investor Advisory Panel published its Annual Report 2012-13. The report summarizes the Panel’s current activities and priorities as well as its recommendations to the Commission on proposals of importance for investor protection. (12/18/2013) OSC press release.
OSC reviews electronic trading risks. The Ontario Securities Commission published an update on its ongoing review of the risks associated with electronic trading, including a review of National Instrument 23-103, which came into effect on March 1, 2013, and established the regulatory framework that oversees and manages risks associated with the use of electronic trading in Canadian marketplaces. (12/12/2013) OSC press release.