A trade repository collects and maintains records of derivatives transactions with the purpose to improve transparency in the derivatives market and to ensure that the designated trade repositories operate in a manner that promotes public interest. The Ontario Securities Commission (OSC) has authority to designate trade repositories under section 21.2.2 of Ontario’s Securities Act.
Designation application process
To operate as a trade repository, a person or company must apply to the Commission for designation and must comply with the designated trade repository requirements set out in Rule 91-507 Trade repositories and derivatives data reporting. Trade repositories must also comply with all terms and conditions imposed by the OSC in any designation order made.
When determining if a trade repository should be designated, the OSC considers, among other things, if:
- it is in the public interest
- the applicant is in compliance with securities law
- the applicant has established policies and procedures that meet the requirements under Rule 91-507
Companion Policy 91-507CP to OSC Rule 91-507 provides additional guidance on how the OSC assesses trade repository application for designation.
Once designated, a trade repository is required to provide the OSC with:
- interim and year-end financial statements
- notice of any significant changes to the information originally submitted in Form 91-507F1 before implementing any changes
- corroboration of its acceptance of derivatives data for each asset class set out in the OSC's designation order
- confirmation that it established, implemented and maintains:
- written governance arrangements
- board composition requirements
- clearly defined management roles and responsibilities
- policies and procedures for material aspects of its business
- records retentions, data security and information privacy policies
- a comprehensive risk management framework
Additional requirements and compliance-related information are outlined in Rule 91-507.
Designated trade repositories
The OSC has designated the following persons or companies as trade repositories operating in Ontario: