Canada's Investment Dealers Association has asked Quebec's regulator to coordinate its efforts in revamping derivatives regulation. The self-regulatory organization told the Autorité des Marchés Financiers in a comment letter that the AMF should communicate with other jurisdictions and consider the impact its proposed legislation will have across Canada.
The letter was in response to the AMF's proposal for a principles-based approach to rulemaking on derivatives, which the IDA stated it supports. The IDA wrote, however, that the approach would need to define the prescriptive requirements and clarify compliance obligations. It also said it backs the creation of a new law, the Derivatives Act, which would be distinct from the Securities Act in Quebec, as long as it is applied with the above factors in mind.
"It is...important to establish a regulatory framework for the derivatives market that is both sufficiently flexible to adapt to rapidly evolving markets and to a wide variety of business plans," the IDA stated. AMF spokespersons did not return calls. Connie Craddock, IDA spokeswoman, said the association will await the AMF's thoughts on its feedback, at which point it may comment further.
