A handful of companies are seeking recognition as trade repositories for the over-the-counter (OTC) derivatives markets in Canada, as regulators aim to step up oversight of this market, and implement reforms agreed by the G20 in the wake of the financial crisis.

The Ontario Securities Commission (OSC) published applications from the Chicago Mercantile Exchange Inc., DTCC Data Repository (U.S.) LLC and Ice Trade Vault, LLC for designation as trade repositories in Ontario for a 30-day comment period. The Autorité des marchés financiers (AMF) also published applications from DTCC and ICE seeking recognition in Québec. The OSC indicates that it is coordinating the application review process with the AMF, and the Manitoba Securities Commission (MSC), which has also received applications for recognition.

Clearing agencies and dealers are required to start reporting certain OTC derivatives transactions to a designated trade repository by Oct. 31, and all other OTC derivatives market participants are required to report by June 30, 2015. The new requirements are designed to increase regulatory oversight of the generally opaque OTC derivatives markets.

The OSC says that the publication of these applications from prospective trade repositories is an “important step” in its effort to ensure that trade reporting can start as planned and that the required infrastructure is in place. Regulators have already had to delay plans for trade reporting once (it was initially slated to start this month) because the necessary infrastructure wasn’t in place.

“Establishing the trade repositories and data reporting infrastructure is a foundational element as the OSC implements OTC derivatives reforms,” said Howard Wetston, chair and CEO of the OSC.”With the publication of these applications we are on track to meet the October reporting deadline and achieve our goal of developing a strong, harmonized and transparent OTC derivatives regime.”

“The recognition of trade repositories and the reporting of data on derivatives traded between two counterparties are keys elements in achieving reforms,” said Gilles Leclerc, superintendent, securities markets, at the AMF. “The data gathered will enhance the ability to identify and address systemic risk and the risk of market abuse.”

The regulators note that they will also be in dialogue with other derivatives market players to ensure implementation of the new trade reporting regime. The AMF says that it expects to issue its recognition decisions in September.