News Release
Canadian securities regulators seek comment on proposed designated benchmarks rule
Mar 14, 2019
Toronto – The Canadian Securities Administrators (CSA) today published for comment a proposed rule, National Instrument 25-102 Designated Benchmarks and Benchmark Administrators (Proposed NI 25-102), intended to implement a comprehensive regime for the designation and regulation of benchmarks and those that administer them.
Benchmarks are increasingly important to our Canadian capital markets. Hence, with the aim of protecting investors, we are proposing a securities regulatory regime that would provide oversight of designated benchmarks,” said Louis Morisset, CSA Chair and President and CEO of the Autorité des marchés financiers.
Currently, there are no formal securities regulatory requirements or oversight in Canada for benchmarks, and those that use them, administer them or contribute data that is used to determine them. The proposed new rule would provide a comprehensive regime for:
- the designation and regulation of benchmarks,
- the designation and regulation of persons or companies that administer designated benchmarks,
- the regulation of persons or companies that contribute certain data used to determine a designated benchmark, and
- the regulation of certain users of designated benchmarks.
In Canada, Refinitiv Benchmarks Services (UK) Limited (RBSL) is currently the administrator of two domestically important benchmarks:
- the Canadian Dollar Offered Rate (CDOR), and
- the Canadian Overnight Repo Rate Average (CORRA).
At this time, the CSA intends to designate only RBSL as an administrator, and only CDOR and CORRA as its designated benchmarks (which are each expected to be designated as a critical benchmark and an interest rate benchmark) upon implementation of Proposed NI 25-102. This intention is based on the significant reliance placed by users and other market participants on CDOR and CORRA, which are used in various financial instruments with a notional value of at least $12.3 trillion (Source: Bank of Canada).
It is possible that the CSA may designate other administrators and their associated benchmarks in the future if it is in the public interest.
The CSA will seek to have Proposed NI 25-102 recognized as “equivalent” for purposes of the “third country regime” under the European Union’s (EU) benchmarks regulation. Having the EU recognize Proposed NI 25-102 as equivalent would allow EU institutional market participants to continue to use any Canadian benchmark designated under Proposed NI 25-102 after an EU restriction goes into effect on January 1, 2022.
Stakeholders are invited to submit their comments in writing by June 12, 2019.
The notice and request for comment can be found on CSA members’ websites.
The CSA, the council of the securities regulators of Canada’s provinces and territories, co-ordinates and harmonizes regulation for the Canadian capital markets.
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For Investor inquiries, please refer to your respective securities regulator. You can contact them here.
For media inquiries, please refer to the list of provincial and territorial representatives below or contact us at media@acvm-csa.ca.
Kristen Rose
Ontario Securities Commission
416-593-2336
media_inquiries@osc.gov.on.ca
Brian Kladko
British Columbia Securities Commission
mediainquiries@bcsc.bc.ca
Jason Booth
The Manitoba Securities Commission
204-945-1660
Shannon McMillan
Financial and Consumer Affairs Authority of Saskatchewan
306-798-4160
David Harrison
Nova Scotia Securities Commission
902-424-8586
Renée Dyer
Office of the Superintendent of Securities
Newfoundland and Labrador
709-729-4909
Rhonda Horte
Office of the Yukon Superintendent of Securities
867-667-5466
Hilary McMeekin
Alberta Securities Commission
403-592-8186
Sylvain Théberge
Autorité des marchés financiers
sylvain.theberge@lautorite.qc.ca
Sara Wilson
Financial and Consumer Services Commission, New Brunswick
506-643-7045
Steven Dowling
Government of Prince Edward Island
Superintendent of Securities
902-368-4550
Jeff Mason
Nunavut Securities Office
867-975-6591
Tom Hall
Office of the Superintendent of Securities,
Northwest Territories
867-767-9305