Notice for OSC Rule 91-504: OSC Rule - 91-504 & 91-504CP - Over-The-Counter Derivatives and Companion Policy 91-504CP

On September 8, 2000, the Commission delivered Rule 91-504 Over-the-Counter Derivatives (the "Rule") and Companion Policy 91-504CP (the "Policy") to the Minister of Finance for approval under section 143.3 of the Securities Act.

On November 2, 2000, the Minister returned the Rule and the Policy to the Commission for further consideration by the Commission of the need for the Rule, especially in regard to the balance between the costs and other restrictions on market participants and the objectives of the Rule, and whether the Commission’s objectives in connection with the regulation of over-the-counter derivatives can be achieved by a rule that identifies the specific classes of transactions and related parties that will be regulated as opposed to having provisions of the Securities Act apply to all over-the-counter derivatives transactions and then providing exemptions from that application. The Minister indicated that a more detailed review of the nature and extent of any disclosure issues in retail over-the-counter derivatives transactions would be helpful in determining the appropriate approach.

The Commission is publishing this Notice in accordance with subsection 143.6(b) of the Act.

December 1, 2000


For further information contact:

Randee B. Pavalow
Manager, Market Regulation
Ontario Securities Commission
(416) 593-8257

Tracey Stern
Legal Counsel, Market Regulation
Ontario Securities Commission
(416) 593-8167