On April 17, 2014, the OSC published proposed changes to the new derivatives reporting rule which delay implementation and lighten some of the reporting burden on end-users.
Under the proposed changes, the new implementation timeline will be as follows:
- New transactions: Reporting of new transactions commences on October 31, 2014 for derivatives dealers (previously July 2, 2014) and June 30, 2015 for non-derivatives dealers (previously September 30, 2014).
- Existing transactions with a derivatives dealer: Existing transactions involving a derivatives dealer that are in effect on October 31, 2014 and not expiring by April 30, 2015 will need to be reported by the derivatives dealer by April 30, 2015. (Previously, existing transactions in effect on July 2, 2014 and not expiring by December 31, 2014 needed to be reported by December 31, 2014.)
- Existing transactions without a derivatives dealer: Existing transactions not involving any derivatives dealer and that are in effect on June 30, 2015 and not expiring by December 31, 2015 will need to be reported by the end-user by December 31, 2015.
As well, end-users will no longer be obligated to report transactions where a non-resident derivatives dealer fails to do so.
There continue to be some interpretative and logistical issues with the reporting rule.