Section 1 definitions of "investment fund", "prudentially regulated entity" and "reference period" added by BC Reg 104/2022, effective September 1, 2022.
Section 1 (2) BEFORE amended by BC Reg 104/2022, effective September 1, 2022.
(2) In this Instrument, a person or company is an affiliated entity of another person or company if one of them controls the other or each of them is controlled by the same person or company.
Section 1 (3) BEFORE repealed by BC Reg 104/2022, effective September 1, 2022.
(3) In this Instrument, a person or company (the first party) is considered to control another person or company (the second party) if any of the following apply:
(a) the first party beneficially owns or directly or indirectly exercises control or direction over securities of the second party carrying votes which, if exercised, would entitle the first party to elect a majority of the directors of the second party unless the first party holds the voting securities only to secure an obligation;
(b) the second party is a partnership, other than a limited partnership, and the first party holds more than 50% of the interests of the partnership;
(c) the second party is a limited partnership and the general partner of the limited partnership is the first party;
(d) the second party is a trust and a trustee of the trust is the first party.
Section 3 (0.1) and (0.2) were added by BC Reg 104/2022, effective September 1, 2022.
Section 3 (1) (b) (ii) BEFORE amended by BC Reg 104/2022, effective September 1, 2022.
(ii) has had, at any time after the date on which this Instrument comes into force, a month-end gross notional amount under all outstanding derivatives exceeding $1 000 000 000 excluding derivatives to which paragraph 7 (1) (a) applies;
Section 3 (1) (c) (i) and (ii)BEFORE amended by BC Reg 104/2022, effective September 1, 2022.
(i) is a local counterparty in any jurisdiction of Canada, other than a counterparty to which paragraph (b) applies, and
(ii) has had, at any time after the date on which this Instrument comes into force, a month-end gross notional amount under all outstanding derivatives, combined with each affiliated entity that is a local counterparty in any jurisdiction of Canada, exceeding $500 000 000 000 excluding derivatives to which paragraph 7 (1) (a) applies.
Section 3 (1) (c) (iii) was added by BC Reg 104/2022, effective September 1, 2022.
Section 3 (2) BEFORE amended by BC Reg 104/2022, effective September 1, 2022.
(2) Unless paragraph (1) (a) applies, a local counterparty to which paragraph (1) (b) or (1) (c) applies is not required to submit a mandatory clearable derivative for clearing to a regulated clearing agency if the transaction in the mandatory clearable derivative was executed before the 90th day after the end of the month in which the month-end gross notional amount first exceeded the amount specified in subparagraph (1) (b) (ii) or (1) (c) (ii), as applicable.
Section 7 BEFORE amended by BC Reg 104/2022, effective September 1, 2022.
Intragroup exemption
7 (1) A local counterparty is exempt from section 3, with respect to a mandatory clearable derivative, if all of the following apply:
(a) the mandatory clearable derivative is between a counterparty and an affiliated entity of the counterparty and each of the counterparty and the affiliated entity are consolidated as part of the same audited consolidated financial statements prepared in accordance with "accounting principles" as defined in National Instrument 52-107 Acceptable Accounting Principles and Auditing Standards;
(b) both counterparties to the mandatory clearable derivative agree to rely on this exemption;
(c) the mandatory clearable derivative is subject to a centralized risk management program reasonably designed to assist in monitoring and managing the risks associated with the derivative between the counterparties through evaluation, measurement and control procedures;
(d) there is a written agreement between the counterparties setting out the terms of the mandatory clearable derivative between the counterparties.
(2) No later than the 30th day after a local counterparty first relies on subsection (1) in respect of a mandatory clearable derivative with a counterparty, the local counterparty must deliver electronically to the regulator or securities regulatory authority a completed Form 94-101F1 Intragroup Exemption.
(3) No later than the 10th day after a local counterparty becomes aware that the information in a previously delivered Form 94-101F1 Intragroup Exemption is no longer accurate, the local counterparty must deliver or cause to be delivered electronically to the regulator or securities regulatory authority an amended Form 94-101F1 Intragroup Exemption.
Section 8 (d) and (e) BEFORE amended by BC Reg 104/2022, effective September 1, 2022.
(d) the mandatory clearable derivative is entered into by the same counterparties as the existing derivatives;
(e) the multilateral portfolio compression exercise is conducted by an independent third-party.
Part 4 BEFORE repealed by BC Reg 104/2022, effective September 1, 2022.
Part 4 — Mandatory Clearable Derivatives
Submission of information on derivatives clearing services provided by a regulated clearing agency
10 No later than the 10th day after a regulated clearing agency first offers clearing services for a derivative or class of derivatives, the regulated clearing agency must deliver electronically to the regulator or securities regulatory authority a completed Form 94-101F2 Derivatives Clearing Services, identifying the derivative or class of derivatives.
Appendix A BEFORE re-enacted by BC Reg 104/2022, effective April 12, 2022.
to National Instrument 94-101
Mandatory Central Counterparty Clearing of Derivatives
Mandatory Clearable Derivatives
(Section 1(1))
Interest Rate Swaps
| Type | Floating index | Settlement currency | Maturity | Settlement currency type | Optionality | Notional type |
| Fixed-to-float | CDOR | CAD | 28 days to 30 years | Single currency | No | Constant or variable |
| Fixed-to-float | LIBOR | USD | 28 days to 50 years | Single currency | No | Constant or variable |
| Fixed-to-float | EURIBOR | EUR | 28 days to 50 years | Single currency | No | Constant or variable |
| Fixed-to-float | LIBOR | GBP | 28 days to 50 years | Single currency | No | Constant or variable |
| Basis | LIBOR | USD | 28 days to 50 years | Single currency | No | Constant or variable |
| Basis | EURIBOR | EUR | 28 days to 50 years | Single currency | No | Constant or variable |
| Basis | LIBOR | GBP | 28 days to 50 years | Single currency | No | Constant or variable |
| Overnight index swap | CORRA | CAD | 7 days to 2 years | Single currency | No | Constant or variable |
| Overnight index swap | FedFunds | USD | 7 days to 3 years | Single currency | No | Constant or variable |
| Overnight index swap | EONIA | EUR | 7 days to 3 years | Single currency | No | Constant or variable |
| Overnight index swap | SONIA | GBP | 7 days to 3 years | Single currency | No | Constant or variable |
Forward Rate Agreements
| Type | Floating index | Settlement currency | Maturity | Settlement currency type | Optionality | Notional type |
| Forward rate agreement | LIBOR | USD | 3 days to 3 years | Single currency | No | Constant or variable |
| Forward rate agreement | EURIBOR | EUR | 3 days to 3 years | Single currency | No | Constant or variable |
| Forward rate agreement | LIBOR | GBP | 3 days to 3 years | Single currency | No | Constant or variable |
Appendix B BEFORE re-enacted by BC Reg 104/2022, effective April 12, 2022.
to National Instrument 94-101
Mandatory Central Counterparty Clearing of Derivatives
Laws, Regulations or Instruments of Foreign Jurisdictions Applicable for Substituted Compliance
(Subsection 3(5))
| Foreign jurisdiction | Laws, regulations or instruments |
| European Union | Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories |
| United States of America | Clearing Requirement and Related Rules, 17 C.F.R. pt. 50 |
Form 94-101F1 BEFORE repealed by BC Reg 104/2022, effective September 1, 2022.
Intragroup Exemption
| Type of Filing: | [ ] INITIAL | [ ] AMENDMENT |
Section 1 — Information on the entity delivering this Form
1. Provide the following information with respect to the entity delivering this Form:
Full legal name:
Name under which it conducts business, if different:
Head office
Address:
Mailing address (if different):
Telephone:
Website:
Contact employee
Name and title:
Telephone:
E-mail:
Other offices
Address:
Telephone:
E-mail:
Canadian counsel (if applicable)
Firm name:
Contact name:
Telephone:
E-mail:
2. In addition to providing the information required in item 1, if this Form is delivered for the purpose of reporting a name change on behalf of the entity referred to in item 1, provide the following information:
Previous full legal name:
Previous name under which the entity conducted business, if different:
Section 2 — Combined notification on behalf of counterparties within the group to which the entity delivering this Form belongs
1. For the mandatory clearable derivatives to which this Form relates, provide all of the following information in the table below:
(a) the legal entity identifier of each counterparty in the same manner as required under the following instruments:
(i) in Alberta, British Columbia, New Brunswick, Newfoundland and Labrador, the Northwest Territories, Nova Scotia, Nunavut, Prince Edward Island, Saskatchewan and Yukon, Multilateral Instrument 96-101 Trade Repositories and Derivatives Data Reporting;
(ii) in Manitoba, Manitoba Securities Commission Rule 91-507 Trade Repositories and Derivatives Data Reporting;
(iii) in Ontario, Ontario Securities Commission Rule 91-507 Trade Repositories and Derivatives Data Reporting;
(iv) in Québec, Regulation 91-507 respecting Trade Repositories and Derivatives Data Reporting;
(b) whether each counterparty is a local counterparty in a jurisdiction of Canada.
| Pairs | LEI of counterparty 1 | Jurisdiction(s) of Canada in which counterparty 1 is a local counterparty | LEI of counterparty 2 | Jurisdiction(s) of Canada in which counterparty 2 is a local counterparty |
2. Describe the ownership and control structure of the counterparties identified in item 1.
Section 3 — Certification
I certify that I am authorized to deliver this Form on behalf of the entity delivering this Form and on behalf of the counterparties identified in Section 2 of this Form and that the information in this Form is true and correct.
DATED at .................................................... this............. day of .................................., 20......
.............................................................................................................................................
(Print name of authorized person)
.............................................................................................................................................
(Print title of authorized person)
.............................................................................................................................................
(Signature of authorized person)
.............................................................................................................................................
(E-mail)
.............................................................................................................................................
(Phone number)
Form 94-101F2 BEFORE repealed by BC Reg 104/2022, effective September 1, 2022.
Derivatives Clearing Services
| Type of Filing: | [ ] INITIAL | [ ] AMENDMENT |
Section 1 — Regulated clearing agency information
1. Full name of regulated clearing agency:
2. Contact information of person authorized to deliver this form
Name and title:
Telephone:
E-mail:
Section 2 — Description of derivatives
1. Identify each derivative or class of derivatives for which the regulated clearing agency offers clearing services in respect of which a Form 94-101F2 has not previously been delivered.
2. For each derivative or class of derivatives referred to in item 1, describe all significant attributes of the derivative or class of derivatives including
(a) the standard practices for managing life-cycle events associated with the derivative or class of derivatives, as defined in the following instruments:
(i) in Alberta, British Columbia, New Brunswick, Newfoundland and Labrador, the Northwest Territories, Nova Scotia, Nunavut, Prince Edward Island, Saskatchewan and Yukon, Multilateral Instrument 96-101 Trade Repositories and Derivatives Data Reporting;
(ii) in Manitoba, Manitoba Securities Commission Rule 91-507 Trade Repositories and Derivatives Data Reporting;
(iii) in Ontario, Ontario Securities Commission Rule 91-507 Trade Repositories and Derivatives Data Reporting;
(iv) in Québec, Regulation 91-507 respecting Trade Repositories and Derivatives Data Reporting,
(b) the extent to which the transaction is confirmable electronically,
(c) the degree of standardization of the contractual terms and operational processes,
(d) the market for the derivative or class of derivatives, including its participants, and
(e) the availability of pricing and liquidity of the derivative or class of derivatives within Canada and internationally.
3. Describe the impact of providing clearing services for each derivative or class of derivatives referred to in item 1 on the regulated clearing agency's risk management framework and financial resources, including the protection of the regulated clearing agency on the default of a participant and the effect of the default on the other participants.
4. Describe the impact, if any, on the regulated clearing agency's ability to comply with its regulatory obligations should the regulator or securities regulatory authority determine a derivative or class of derivatives referred to in item 1 to be a mandatory clearable derivative.
5. Describe the clearing services offered for each derivative or class of derivatives referred to in item 1.
6. If applicable, attach a copy of every notice the regulated clearing agency provided to its participants for consultation on the launch of the clearing service for a derivative or class of derivatives referred to in item 1 and a summary of concerns received in response to the notice.
Section 3 — Certification
CERTIFICATE OF REGULATED CLEARING AGENCY
I certify that I am authorized to deliver this Form on behalf of the regulated clearing agency named below and that the information in this Form is true and correct.
DATED at ................................. this ........................... day of .................................., 20......
....................................................................................................................................................
(Print name of regulated clearing agency)
....................................................................................................................................................
(Print name of authorized person)
....................................................................................................................................................
(Print title of authorized person)
....................................................................................................................................................
(Signature of authorized person)