BC updates the list of derivatives that must be centrally cleared under National Instrument 94-101

Plain-language summary · AI-assisted

British Columbia's securities regulator has replaced Appendix A of National Instrument 94-101, which sets out the specific derivatives contracts that must be cleared through a central counterparty. The revised list covers interest rate swaps (fixed-to-float and basis swaps referencing EURIBOR and BBSW), overnight index swaps referencing CORRA, FedFunds, SOFR, €STR and SONIA, forward rate agreements referencing EURIBOR, and credit default swaps on CDX.NA.IG, CDX.NA.HY and iTraxx Europe indices. Key changes include updated applicable series numbers for the CDS indices (Series 47 and subsequent for CDX; Series 46 and subsequent for iTraxx Europe) and revised maturity ranges for certain instruments. Dealers, advisers and counterparties that trade in any of these derivative types need to confirm whether their transactions fall within the updated scope and ensure they are routing eligible trades to a qualifying central counterparty.

Who this affects
derivatives dealers · portfolio managers and investment advisers · institutional counterparties trading interest rate or credit derivatives · compliance officers at registered firms · foreign and domestic banks active in OTC derivatives markets