Securities regulators sign MOU with Bank of Canada to promote efficient clearing and settlement systems

April 10, 2014

The OSC, BCSC, AMF and the Bank of Canada have entered into a Memorandum of Understanding intended to promote the safety and efficiency of clearing and settlement systems and manage systemic risk in a coordinated and consistent fashion. The MOU specifically calls on the parties to consult and coordinate with each other on such issues as (i) concerns that could affect the safety or efficiency of a regulated system; (ii) the publication of proposed rules, and amendments to rules, in respect of regulated systems; and (iii) independent reviews or audits in regards to a regulated system.

While the regulated systems governed by the MOU may change from time to time they currently consist of CDSX, the clearing system operated by CDS Clearing and Depository Services Inc., and CDCS, being the Canadian Derivatives Clearing Service operated by the Canadian Derivatives Clearing Corporation.

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