The Canadian Securities Administrators is seeking comment on a proposed rule and policy related to the mandatory clearing of derivatives. In general, CSA proposes that, in connection with an over-the-counter derivative subject to mandatory clearing, a local (Canadian) counterparty must submit the transaction to a regulated clearing agency. However, substituted compliance may apply to transactions involving a local counterparty where transactions are submitted to clearing subject to the laws of a Canadian jurisdiction other than the jurisdiction of the local counterparty or certain foreign jurisdictions. Exemptions from mandatory clearing requirements are contemplated where one of the counterparties is not a financial institution and engages in hedging or risk mitigation, as well as for intragroup transactions. In addition, CSA proposes to make all final determinations regarding what specific derivatives or class of derivatives should be cleared. It will do so, considering, among other factors, “the standardization of a derivative or class of derivatives, its risk profile, and the liquidity and characteristics of its market.” CSA’s objective is “to harmonize, to the greatest extent appropriate, the determination of mandatory clearable derivatives or classes of derivatives across Canada and with international standards.” Comments are due by May 13. Separately, the Monetary Authority of Singapore determined not to impose a mandatory trading regime for OTC derivatives at the present time. According to the regulator, “MAS will continue to monitor developments, consult the industry closely, and conduct detailed analysis to determine the conditions that might make a trading mandate necessary.”