Notice of Commission Approval – Amendments to Sections A-1A04 and A-401 of the rules of CDCC in order to establish and document CDCC's consultation power – Canadian Derivatives Clearing Corporation (CDCC)

 
In accordance with the Rule Protocol between the Ontario Securities Commission (Commission) and CDCC, the Commission approved on February 7, 2017, changes to the amendments to Sections A-1A04 and A-401 in order for establish and document CDCC’s consultation power.

A copy of the CDCC notice was published for comment on August 18, 2016 on the Commission's website at: http://www.osc.gov.on.ca. No comments were received.

The purpose of the rule amendments is to establish and document CDCC’s intention to enter into consultation with the Bank of Canada before declaring certain clearing members non-conforming or using enforcement measures permitted under such status. Additional amendments were made to Sections A-1A04 and A-401 of the Rules of CDCC since publication for comment. The scope of CDCC’s obligation to consult with the Bank of Canada was clarified to apply to a clearing member who may be affected by an order under subsection 39.13(1) of the Canada Deposit Insurance Corporation Act or the affiliates of such clearing member and CDCC will consult with the Bank of Canada pursuant to the CDCC rules. The language was adjusted accordingly to provide greater transparency as to the nature of the obligation of CDCC with respect to its consultation with the Bank of Canada.

A copy of the CDCC Notice containing the cumulative changes made to the rule is published on our website at http://www.osc.gov.on.ca.