The Canadian Securities Administrators (CSA) has proposed amendments to streamline and harmonize over-the-counter derivatives data reporting standards internationally. 

The amendments are expected to cut the complexity of reporting systems and lower costs while improving the consistency and quality of data available to regulators and the public.  

Harmonization is a significant milestone 

“The global harmonization of data reporting standards represents a significant milestone that would reduce the regulatory burden for many market participants who report derivatives transactions around the world,” said Louis Morisset, CSA Chair and President and CEO of the Autorité des marchés financiers. 

“At the same time, improvements to data quality and consistency will enable us to more effectively identify risks and vulnerabilities to our financial markets and strengthen our ability to detect inappropriate activity that can harm investors.” 

Proposals aim at aligning North American and global standards 

The proposed changes are meant to align with North American and global standards developed by the Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO). 

In addition to harmonizing data reporting standards, other proposed amendments include updating requirements for trade repository governance, operations and management of risk to align with international standards. If agreed to, there will also be improvements designed to enhance data accuracy and consistency, such as data validation and verification, similar to other global regulators. 

Comments should be provided in writing by October 7, 2022.