Canadian Trade Reporting
LCH Circular No 3541
5 November 2014
Trade reporting rules implemented by the Canadian securities agencies require that cleared trades involving ‘local counterparties' and which are cleared must be reported to the relevant local securities agency.
LCH.Clearnet Limited (the "Clearing House") has requested that all Clearing Members (including FCM Clearing Members) inform the Clearing House where they have established an account with the Clearing House for a Clearing Client or an FCM Client that is a Canadian ‘local counterparty'. Clearing Members must also provide the Clearing House with the entity's current Legal Entity Identifier (LEI). LCH.Clearnet will report based on the LEI information received from Clearing Members. Where an LEI does not exist for a Canadian Clearing Client or FCM Client, Clearing Members must inform the Clearing House of the province where the ‘local counterparty' is established.
For the purposes of the Canadian trade reporting rules, the following constitute a ‘local counterparty':
i. a person or company organized under the laws of, or having its head office or principal place of business in the province.
ii. an affiliate of (i) if responsible for its liabilities.
iii. parties required to registered under provincial securities law as a derivatives dealer.
Where a Clearing member fails to provide the Clearing House with the foregoing information with respect to a Clearing Client or an FCM Client, it shall be deemed to represent to the Clearing House that the Clearing Client or FCM Client is not a Canadian ‘local counterparty' and the relevant transaction will not be reported by the Clearing House.
For queries please contact: James Davitt | LCH.Clearnet | Tel: 1 (212) 513 5639