On July 7, 2016, the Canadian Securities Administrators Derivatives Committee (the “Committee”) published CSA Consultation Paper 95-401 entitled “Margin and Collateral Requirements for Non-Centrally Cleared Derivatives” (the “Consultation Paper”) with respect to minimum margin requirements for certain non-centrally cleared derivatives entered between counterparties that are both financial entities with an aggregate month-end average notional amount under all outstanding non-centrally cleared derivatives above $12 billion (excluding certain inter-affiliate trades).

The Consultation Paper includes recommendations that are largely consistent with margin requirement guidelines published by the Office of the Superintendent of Financial Institutions Canada (“OSFI”) in its Guideline E-22 (the “OSFI Margin Rules”) which are to apply to federally regulated financial institutions starting as of September 1, 2016. These recommendations are also based predominantly on international standards published by the Basel Committee on Banking Supervision and the International Organization for Securities Commission.

In addition to the recommendations, the Consultation Paper includes a series of 16 questions and the Committee has requested comments on the Consultation Paper be submitted by September 6, 2016.