The Ontario Securities Commission (OSC) recently announced amendments to OSC Rule 91-507 Trade Repositories and Derivatives Data Reporting and the related Companion Policy (the TR Rule). The TR Rule requires that all over-the-counter (OTC) derivative transactions involving a local counterparty be reported to a designated trade repository in Ontario.
Most notably, the amendments to the TR Rule require that all eligible local counterparties to reportable transactions acquire, maintain and renew a legal entity identifier (LEI). An LEI is a 20-character alphanumeric code that is available in Canada through DTCC.
Prior to the amendments, reporting counterparties were responsible for ensuring that eligible counterparties to a transaction were identified using an LEI, but lacked an effective means to enforce this and could use a substitute LEI in the interim. Under the amendments, individuals and those not eligible to receive an LEI will be identified by the reporting counterparty with an alternate identifier.
The amendments to the TR Rule also provide an exception from the requirement to report derivatives data for transactions between local counterparties and their affiliates, and extended the deadline for public dissemination of transaction level reports by designated trade repositories to January 2017.
The amendments to the TR Rule are anticipated to come into force on July 29, 2016.
For more information on the TR Rule, please see our nutshell on this topic.