Three firms have been approved to serve as trade repositories for over-the-counter (OTC) derivatives trade reporting in Canada, as global regulatory reforms in that market continue to inch ahead.

The Ontario Securities Commission (OSC) Tuesday published orders designating the Chicago Mercantile Exchange Inc., DTCC Data Repository (U.S.) LLC and Ice Trade Vault, LLC as trade repositories in Ontario, ahead of forthcoming trade reporting requirements.

Dealers and clearing agencies are required to start reporting certain OTC derivatives transactions to a designated trade repository starting on Octoberta 31. All other OTC derivatives market participants will be required to start reporting by June 30, 2015.

The new trade reporting requirements are part of Canada’s commitments to the G20 designed to enhance oversight of the OTC derivatives market in the aftermath of the financial crisis; and, to bolster the framework for financial stability. The OSC stresses that it is developing internationally and inter-provincially harmonized legislative and regulatory proposals to strengthen the supervision of OTC derivatives markets. In recognizing the trade repositories, it is coordinating with the Autorité des marchés financiers (AMF) and the Manitoba Securities Commission (MSC).

Additionally, the OSC notes that industry engagement is essential to ensuring a successful transition to the new reporting regime; and, to that end, it says that it intends to continue dialogue with the industry ahead of the reporting deadline.

“The data gathered by trade repositories will enhance our ability to identify and address systemic risk and the risk of market abuse,” said Gilles Leclerc, AMF superintendent, securities markets.

“To help ensure a harmonious transition toward this new regime, we are asking local counterparties concerned to contact one or all of these three trade repositories immediately in order to start setting up connectivity procedures, which could take from two to four weeks,” added Leclerc.