On March 14, 2014, the International Swaps and Derivatives Association, Inc. (ISDA) published Canadian Representation Letter #1: Trade reporting and Other Obligations, a copy of which can be found [here]. The purpose of this Representation Letter is to assist market participants in addressing their obligations under the over-the-counter derivatives trade reporting rules in Canada. To date, each of the Ontario Securities Commission, the Manitoba Securities Commission and the Autorité des marchés financiers have published their own respective Rule 91-507 Trade Repositories and Derivatives Data Reporting. Reporting obligations under these rules begin on July 2, 2014 for trades involving a clearing agency or a dealer and on September 30, 2014 for trades that do not involve a clearing agency or a dealer.
Market participants should note that the execution and exchange of the Representation Letter with their counterparties will only address or facilitate some of the reporting obligations under the Canadian trade reporting rules. We recommend that you review your ISDA and similar agreements under which you enter into trades that are caught by the Canadian trade reporting rules and make any necessary amendment to ensure that you are able to comply with your reporting obligations under these rules. The amendments required are fact dependent, based on the identity of, and your arrangements with, your counterparty. We would be pleased to assist you in determining the exact steps that you should take now to be ready for trade reporting in July.