index current to release 2016-2index current to release 2016-2 all references are to section...

INDEX

Current to Release 2016-2

All references are to section numbers, except for references to the Appendices (i.e.,App-19), which refer to page numbers within the Appendices.

accredited counterparties — Quebec Derivatives Actexemption for exchange-traded derivatives involving, 10.1.3(h)exemption for OTC derivatives involving, 10.1.3(g)

affiliate set-off, see master agreements, enforcement of provisions

Albertacapacity to engage in derivatives trading

municipalities, 3.3.3(b)provincial government, 3.3.1(b)(ii)

regulatory issuesexemption orders and rules, 10.1.4(c)‘‘futures contract” definition, 10.1.4(b)Securities Act amendments, 10.1.4(d)‘‘security” definition includes exchange contracts and OTCderivatives, 10.1.4(a)

Securities Act, selected sections, App-559securities regulatory instruments

Alberta Securities Commission Notice Blanket Order 91-506 Over-the-Counter Trades in Derivatives, App-589

anti-deprivation principles in insolvency proceedingsoperation of section 2(a)(iii) ISDA Master Agreement in, 6.3.4

AWA v. Daniels, 7.3, see also derivatives relationships, duties owed in, breach ofduty of care

Bank Act (Can.)derivatives documentation under, 2.3(c)

Bankruptcy and Insolvency Act (Can.)close-out netting and collateral enforcement, App-1018, App-1026eligible financial contracts, App-1035preferences under

application to BIA proposals and CCAA, 8.8.2(f)creditor, 8.8.2(c)general test, 8.8.2(a)intent to prefer, 8.8.2(e)transfer of property, 8.8.2(b)transfers at an undervalue, 8.8.2(h)

Index-1 (Derivatives) (2016–Rel. 2)

within 3 months of bankruptcy, 8.8.2(d), (g)securities firm bankruptcy, effect of, 8.7.3(c)stays on actions against debtor’s property, 8.6.5(a)(i)termination and close-out netting rights, enforceability of

entities, application of Act to, 5.4.3(a)proceedings, 5.4.3(c)proposals, treatment of derivative contracts under, 5.4.3(b)

bankruptcy and winding-up, effect on enforcing securityliquidation of collateral, 8.6.3(a)set-off, 8.6.3(b)

banks engaging in derivatives trading, 3.4.1

Bills of Exchange Act (Can.)holder in due course under, priority claim, 8.5.7

Brane v. Roth, 7.3, see also derivatives relationships, duties owed in, breach of dutyof care

British Columbiacapacity to engage in derivatives trading

municipalities, 3.3.3(e)provincial government, 3.3.1(b)(iii)

regulatory issuesexemption orders and rules, 10.1.4(c)‘‘futures contract” definition, 10.1.4(b)‘‘security” definition includes exchange contracts and OTCderivatives, 10.1.4(a)

securities and commodities legislationproposed derivatives-related legislation, App-301Securities Act, selected sections, Bill 38, App-303Securities Act, selected sections, App-305

securities regulatory instrumentsBCN 2009/32 Adoption of BC Companion Policy 91-502CP, App-587Blanket Order 91-501 Over-The-Counter Derivatives, App-579Companion Policy to Blanket Order 91-501, App-583Blanket Order 91-502 Short Term Foreign Exchange Transactions,App-585Blanket Order 91-503 Contracts Providing for Physical Delivery ofCommodities, App-58891-502CP Short Term Foreign Exchange Transactions (CP), App-586

bucket shop prohibition, 4.2

INDEX

Index-2

Caiola v. Citibank N.A., 7.4, see also derivatives relationships, duties owed in,fraudulent or negligent statements, duty not to make

caisses populaires engaging in derivatives trading, 3.4.4

Canada Deposit Insurance Corporation Actbridge institution stay, 5.6.4, 8.6.6close-out netting and collateral enforcement, App-1028eligible financial contracts, App-1048eligible financial contracts exemption, App-5.6.3general stay, 5.6.2restructuring regime, 5.6.1restructuring stay, 5.6.5stays on actions against debtor’s property, 8.6.5(a)(ii)

capacity and authority to engage in derivatives tradingcapacity vs. authority, 3.2.1contracts, void, recovery of payments under

defences, 3.2.2(c)grounds, 3.2.2(a)interest, 3.2.2(b)

Crown corporations, 3.3.2federal and provincial governments

Alberta, 3.3.1(b)(ii)boards and agencies, 3.3.1(c)British Columbia, 3.3.1(b)(iii)federal government, 3.3.1(b)(i)generally, 3.3.1(a)Manitoba, 3.3.1(b)(iv)Ontario, 3.3.1(b)(v)Prince Edward Island, 3.3.1(b)(vi)Quebec, 3.3.1(b)(vii)Saskatchewan, 3.3.1(b)(viii)

financial institutionsbanks, 3.4.1caisses populaires, 3.4.4credit unions, 3.4.4insurance companies, 3.4.2trust and loan corporations, 3.4.3

municipalitiesAlberta, 3.3.3(b)generally, 3.3.3(a)Ontario, 3.3.3(c)other provinces, 3.3.3(e)Quebec, 3.3.3(d)

INDEX


mutual funds, 3.6pension funds, 3.5

certificated securities, priority claim against collateralconflict of laws, 8.5.3(a)perfection, 8.5.3(c)priority, 8.5.3(d)protected purchasers, 8.5.3(e)validity, 8.5.3(b)

close-out netting rights, see termination and close-out netting rights, enforceabilityof

collateralization, alternatives toCanadian issues, generally, 9.2.3(a)Credit Support Annex, structure of, 9.2.2deteriorating credit risk, 9.6generally, 9.1ISDA Transfer Annex, 9.2.1mutual puts, 9.5prepayment or revaluation, 9.4recharacterization as security agreement, consequences of

netting agreements under Payment Clearing and Settlement Act,9.2.4(b)personal property security implications, 9.2.4(c)regulatory implications, 9.2.4(a)

recouponing, 9.3revaluation, 9.4tax implications, 11.6.1transfer and set-off agreement, 9.2.3(b)transfer annex form

language and concepts, consistency of, 9.2.3(c)(ii)Quebec, characterization in, 9.2.3(c)(iv)securing purpose, 9.2.3(c)(iii)substance over form, 9.2.3(c)(i)

collateral provider, considerations forcustodian insolvency, effect of under Securities Transfer Act

insolvency proceedings and, 8.7.4(b)rights under, 8.7.4(a)

fraudulent conveyance issues, see creditor preference and fraudulentconveyance issuesgenerally, 8.7.1right to set-off collateral value where secured party in default

excess collateral, rights with respect to, 8.7.2(b)

INDEX

Index-4

right to net the value of collateral, 8.7.2(a)

(Continued on page Index-5)

INDEX

Index-4.1 (Derivatives) (2016–Rel. 2)

securities firm bankruptcy, effect of, 8.7.4(c)securities intermediary, where collateral receiver or holder is

generally, 8.7.3(a)securities firm bankruptcy, effect of, 8.7.3(c)security interests in favour of, 8.7.3(b)

commodity contractseligible financial contracts, as, 5.2.2.(c)taxation, 11.2.3(a)

Commodity Futures Act (Ont.), 7.5.2(b)

commodity price risk, management ofcommodity swaps, 1.8.1

Companies Creditors’ Arrangement Act (Can.)close-out netting and collateral enforcement, App-1015eligible financial contracts, App-1044entities, application of Act to, 5.7.1exemption from priming orders, 8.6.5(b)statutory provisions, 5.7.2stays on actions against debtor’s property, 8.6.5(a)(iii)

conflict of laws in security agreementsgenerally, 8.5.2priority claims against collateral

certificated securities, 8.5.3(a)indirectly held financial assets, 8.5.5(a)uncertificated securities, 8.5.4(a)

contracts for differences, 10.1.7

contracts, voidrecovery of payments under, 3.2.2

creditor preference and fraudulent conveyance issuesBankruptcy and Insolvency Act, preferences under

application to BIA proposals and CCAA, 8.8.2(f)creditor, 8.8.2(c)general test, 8.8.2(a)intent to prefer, 8.8.2(e)transfer of property, 8.8.2(b)transfers at an undervalue, 8.8.2(h)within 3 months of bankruptcy, 8.8.2(d), (g)

generally, 8.8.1provincial fraudulent conveyances legislation, 8.8.5provincial preferences legislation

common law provinces, 8.8.4(a)

INDEX


Quebec, 8.8.4(b)Winding-Up and Restructuring Act

contracts, fraudulent conveyances and, 8.8.3(b)generally, 8.8.3(a)payments within 30 days of winding-up, 8.8.3(d)unjust preferences, 8.8.3(c)

credit risk, management ofcredit default swaps and options, 1.9.2credit derivatives, generally, 1.9.1credit linked notes, 1.9.5credit protection transactions, 1.9.2credit spread forward, 1.9.4credit spread swap, 1.9.4portfolio/basket swaps, 1.9.6total return swaps, 1.9.3

credit support annex, schedule to ISDA Master Agreementcollateral

commingling and rehypothecation of, 8.3.2(g)type of, 8.3.2(c)valuation, 8.3.2(d)

custodian, use of, 8.3.2(f)dispute resolution, 8.3.2(e)grace periods, 8.3.2(h)mark-to-market collateralization, 8.3.2(b)remedies, 8.3.2(h)structure, 8.3.2(a), 9.2.2valuation of transactions, 8.3.2(d)

credit support annex, select agreementsGuide to amendments to New York form, App-143Multicurrency — Cross-border, App-117Schedule of amendments to, and instructions for the New York form, App-135Transfer — English law, App-149

credit support mechanisms, tax implicationscollateralization, 11.6.1prepayments, 11.6.3recouponing payments, 11.6.2

credit unions engaging in derivatives trading, 3.4.4

Criminal Codegaming laws, 4.2

Crown corporations

INDEX

Index-6

engaging in derivatives trading, 3.3.2power and capacity to grant security interests, 8.4.3

CSA Consultation Papers on OTC DerivativesCSA Consultation Paper 91-301 — Model Provincial Rule — TradeRepositories and Derivatives Data Reporting, App-801CSA Consultation Paper 91-401 on Over-the-Counter Derivatives Regulationin Canada, App-802.53CSA Consultation Paper 91-402 — Derivatives Trade Repositories, App-851CSA Consultation Paper 91-403 — Derivatives Surveillance and Enforcement,App-886CSA Consultation Paper 91-404 — Derivatives Segregation and Portability inOTC Derivatives Clearing, App-904CSA Consultation Paper 91-405 — Derivatives End-User Exemption, App-941CSA Consultation Paper 91-406 — Derivatives OTC Central CounterpartyClearing, App-956CSA Consultation Paper 91-407 — Derivatives Registration, App-1014.1

currency forwards, 1.6.4

currency options, 1.6.5

currency rate risk, management ofcurrency forwards, 1.6.4currency options, 1.6.5currency swaps, 1.6.1differential or ‘‘quanto” swap, 1.6.2foreign currency asset swaps, 1.6.3FRA options, 1.6.6

currency swaps, 1.6.1

custodian insolvency, see collateral provider, considerations for

delayed variable rate reset swaps, 1.5.6

depository bills and notes, priority claim, 8.5.8

derivatives documentation, generallyCanadian issues

additional representations, 2.3(d)Bank Act (Can.), 2.3(c)force majeure, 2.3(e)French language requirements, 2.3(a)Interest Act (Can.), 2.3(b)

ISDA Protocols and Publications Regarding Global Derivative Regulations,2.4

INDEX


Canadian Representation Letter #1 Trade Reporting and OtherObligations (“Canadian Trade Reporting Letter”), 2.4.5Dodd-Frank, 2.4.2European Market Infrastructure Regulations (“EMIR”), 2.4.3ISDA 2013 Reporting Protocol, 2.4.4

enforceability, see master agreements, enforcement of provisionsgenerally, 2.1history, 2.1master agreements, 2.2

close-out netting, 2.2(d)netting by novation, 2.2(e)1992 ISDA Master Agreement, 2.2(b), (c)

derivatives, generallydefinition, 1.2duties owed in derivatives relationship, see derivatives relationships, dutiesowed inpermitted uses by investment funds

disclosure requirements, 10.1.8(e)generally, 10.1.8(a)registration requirements, 10.1.8(d)restrictions on use of specified derivatives, 10.1.8(c)specified derivatives, 10.1.8(b)

why derivative products are used, 1.4

derivatives relationships, duties owed inbreach of duty of care, 7.3fiduciary duties, 7.2fraudulent or negligent statements, duty not to make, 7.4generally, 7.1regulatory standards and suitability — ‘‘Know You Client”

generally, 7.5.1regulatory requirements, 7.5.2

derivatives trading, see capacity and authority to engage in derivatives trading

documentation, see derivatives documentation

Draft Capital Markets Stability Act (Can.), App-576.1Revised Consultation Draft, August, 2015, App-576.44

eligible financial contracts, 2.3(d), 5.2.2

equity index derivativesequity index options, 1.7.2equity index swaps, 1.7.1equity-linked debt instruments, 1.7.3

INDEX

Index-8

Eternity Global Master Fund Ltd. v. Morgan Guar. Trust Co. of N.Y., 7.4, see alsoderivatives relationships, duties owed in, fraudulent or negligent statements, dutynot to make

federal and provincial governments engaging in derivatives trading, 3.3.1

financial institutions engaging in derivatives trading, 3.4

force majeurederivatives documentation, 2.3(e)master agreements, additional language, App-115

foreign bank provisions of federal banking laws, 10.3

foreign currency asset swaps, 1.6.3

forwardscurrency forwards, 1.6.4forward contracts

generally, 1.3.1taxation, 11.2.3(c)

forward rate agreements (FRA), 1.3.1

FRAsgenerally, 1.3.1options, 1.6.6

fraudulent conveyances, see creditor preference and fraudulent conveyance issues

futuresgenerally, 1.3.3priority claim against collateral, 8.5.6taxation, 11.2.3(d)

FX contracts and contracts for differences, 10.1.7

gaming laws, application ofbucket shop prohibition, 4.2Criminal Code, 4.2provincial statutes, 4.3

Guideline B-7 Derivatives Sound Practices, App-1055

Guideline — Derivatives Sound Practices — Sound Business and FinancialPractices, App-1063

Guideline Impact Analysis Statement, App-1081

Guideline (Draft) — Margin Requirements for non-centrally cleared derivatives,App-1097

hedging transactions, taxation, 11.2.2

INDEX


IIROCregulatory issues, 10.1.9Rules, 7.5.2(c)(i)

indirectly held financial assets, priority claim against collateral

conflict of laws, 8.5.5(a)perfection, 8.5.5(c)priority, 8.5.5(d)validity, 8.5.5(b)

insider reporting of OTC derivativesexemptions, 10.1.10(c)generally, 10.1.10(b)

insider trading issues, 10.1.10(a)

insolvency laws, termination and close-out netting rightsBankruptcy and Insolvency Act, 5.4.3description of insolvency regimes, 5.4.2federal vs. provincial jurisdiction, 5.4.1

insurance companiesengaging in derivatives trading, 3.4.2power and capacity to grant security interests, 8.4.2(b)

insurance laws and OTC credit derivativesapplication, 10.2.1, 10.2.4contracts of insurances, whether credit derivatives qualify as, 10.2.3regulatory framework and enforceability, 10.2.2

International Foreign Exchange Master Agreement (IFEMA), 2.2(e)

Interest Act (Can.)derivatives documentation under, 2.3(b)

interest rate caps, floors and collars, 1.5.5

interest rate risk, management ofbasic swaps, 1.5.2delayed variable rate reset swaps, 1.5.6forward rate transaction, 1.5.3forward swaps, 1.5.3interest rate caps, floors and collars, 1.5.5interest rate swaps, 1.5.1plain vanilla swap, 1.5.1swaptions, 1.5.4zero coupon swap, 1.5.7

INDEX

Index-10

interest rate swaps, 1.5.1

Investment Guidance Notes — Prudent Investment Practices for Derivatives, App-1085

ipso facto clauses in insolvency proceedings, operation of section 2(a)(iii) ISDAMaster Agreement in, 6.3.4

ISDA Agreementsforce majeure, additional language, App-115

ISDA 1992 Master Agreement, App-49ISDA 2002 Master Agreement, App-3

ISDA Representation Regarding Relationship Between Parties, App-811995 Credit Support Deed, App-1632001 Form of Amendment to ISDA Master Agreements, App-83

2001 Margin Provisions, App-1892003 Form of Amendment to ISDA Master Agreements, App-109

ISDA Master Agreement, see master agreements and credit support annex,schedule to ISDA Master Agreement

ISDA Transfer Annex, 9.2.1

‘‘Know Your Client”, regulatory standards and suitabilitygenerally, 7.5.1regulatory requirements

Commodity Futures Act, 7.5.2(b)IIROC Rules, 7.5.2(c)(i)Securities Acts, 7.5.2(a)

loan and trust companiespower and capacity to grant security interests, 8.4.2(a)

Manitobacommodity futures contracts and options, 10.1.6(c)government capacity to engage in derivatives trading, 3.3.1(b)(iv)OTC derivatives, 10.1.6 (d)securities and commodities legislation

Man. Reg. 179/99 Commodity Futures Fees Regulation, App-469Man. Reg. 180/99 Commodity Futures Rule-Making Regulation,App-472The Commodity Futures Act, App-427

securities regulatory instrumentsBlanket Order 91-501 Over-the-Counter Derivatives, App- 616(1)

Manitoba Securities Commission Rule 91-506 Derivatives: ProductDetermination, App-616.25

Companion Policy 91-506CP Derivatives: Product Determination,App-616.28

INDEX


Manitoba Securities Commission Rule 91-507 Trade Repositories andDerivatives Data Reporting, App-616.38

Canadian Representation Letter #1: Trade Reporting and OtherObligations, App-237Companion Policy 91-507CP Trade Repositories and DerivativesData Reporting, App-616.79

Notice of Manitoba Securities Commission, App-616.1

master agreements, enforcement of provisionsbreach, no payment on, 6.8

forfeituredefaulting party’s asset, 6.8.1general principles, 6.8.3

penalty, 6.8.2close-out, payment on, 6.5

enforceability, general principles, 6.5.1loss benchmarked against market quotes, 6.5.4loss of bargain damages in a non-repudiatory breach, 6.5.3penalty analysis not applying to clauses not triggered by breach, 6.5.2

conditional payments and flawed asset approach, 6.7confirmation, oral or electronic, 6.10flawed asset approach, 6.7forfeiture of defaulting party’s asset, 6.8.1interpretation generally, 6.1net termination amount not owed by non-defaulting party, 6.8opinion qualifications, 6.11section 1(c), single agreement clause, 6.2section 2(a)(iii), 6.3

insolvency proceedings, operation in, 6.3.4interpretation, 6.3.2penalty clause, 6.3.3text of clause, 6.3.1

section 13governing law, 6.9.1jurisdiction, 6.9.2

set-off rights, contractual, 6.6affiliates, claims to and by, 6.6.3bankruptcy, 6.6.2generally, 6.6.1winding-up, 6.6.2

termination rightsbankruptcy events in default, 6.4.2cross-default, 6.4.1

INDEX

Index-12

master agreements, generallyclose-out netting, 2.2(d)netting by novation, 2.2(e)1992 ISDA Master Agreement, 2.2(b), (c)

municipalities engaging in derivatives trading, 3.3.3

mutual fundsengaging in derivatives trading, 3.6power and capacity to grant security interests, 8.4.4termination and close-out netting rights, 5.8.2

mutual puts, 9.5

netting, see also termination and close-out netting rights, enforceability ofclose-out netting, 2.2(d)netting by novation, 2.2(e)

New Brunswickregulatory issues

exemption orders and rules, 10.1.4(c)‘‘futures contract” definition, 10.1.4(b)‘‘security” definition includes exchange contracts and OTCderivatives, 10.1.4(a)

securities and commodities legislationSecurities Act, selected sections, App-565

securities regulatory instrumentsAmended Local Rule 91-501 Derivatives, App-607New Brunswick Securities Commission Form 91-501F1 — RiskInformation Document, App-613

Newfoundland and Labradorregulatory issues, 10.1.5Securities Act, selected sections, App-569

Northwest Territoriesregulatory issues, 10.1.5Securities Act, selected sections, App-575

Nova Scotiaregulatory issues, 10.1.5Securities Act, selected sections, App-567

Nunavutregulatory issues, 10.1.5Securities Act, selected sections, App-571

Ontariocapacity to engage in derivatives trading

INDEX


municipalities, 3.3.3(c)provincial government, 3.3.1(b)(v)OTC derivatives, 10.1.6 (d)

preferences legislation, 8.8.4(a)regulatory issues

commodity futures contracts and options, 10.1.6(a)OTC derivatives, 10.1.6(b)

securities and commodities legislationcommodity futures, App-313Commodity Futures Act, App-319Ontario Commodity Futures Act Advisory Committee Final Report,App-381

OSC Rule 14-502, Designation of Additional Commodities,App-315

Companion to Policy OSC Rule 14-502, App-316Securities Act, selected sections, App-377

securities regulatory instrumentsCanadian Representation Letter #1: Trade Reporting and OtherObligations, App-237Ontario Securities Commission Rule 91-506, App-617Companion Policy 91-506CP, App-618.1Ontario Securities Commission Rule 91-507, App-618.11Companion Policy 91-507CP, App-618.48

optionsgenerally, 1.3.4taxation, 11.2.3(e)

OSFI Guidelines on Derivatives, 10.4.2

pari passu principles in insolvency proceedingsoperation of section 2(a)(iii) ISDA Master Agreement in, 6.3.4

Payment Clearing and Settlement Act (Can.)agreements, application of s. 13, 5.3.5close-out netting and collateral enforcement, App-1032collateral realization protection, 8.6.2eligible financial contracts, App-1053entities, application of s. 13, 5.3.4insolvency regimes, application of s. 13, 5.3.3

netting agreements under, 9.2.4(b)provisions, 5.3.1

purpose of s. 13, 5.3.2

INDEX

Index-14

Peekay Intermark Ltd. v. Australia & New Zealand Banking Group Ltd., 7.4, see alsoderivatives relationships, duties owed in, fraudulent or negligent statements, dutynot to make

pension fundsengaging in derivatives trading, 3.5power and capacity to grant security interests, 8.4.2(c)termination and close-out netting rights, 5.8.3

perfection of claims against collateral, see also security agreementscertificated securities, 8.5.3(c)indirectly held financial assets, 8.5.5(c)uncertificated securities, 8.5.4(c)

plain vanilla swaps, 1.5.1

portfolio/basket swaps, 1.9.6

preferences under Bankruptcy and Insolvency Actapplication to BIA proposals and CCAA, 8.8.2(f)creditor, 8.8.2(c)general test, 8.8.2(a)intent to prefer, 8.8.2(e)transfer of property, 8.8.2(b)transfers at an undervalue, 8.8.2(h)within 3 months of bankruptcy, 8.8.2(d), (g)

Prince Edward Islandgovernment capacity to engage in derivatives trading, 3.3.1(b)(vi)regulatory issues, 10.1.5

principal protected notes, 10.4.1

priority claims against collateral, see security agreements

provincial gaming statutes, application of, 4.3

qualified party for securities law purposes, 2.3(d)

quanto swap, 1.6.2

Quebeccapacity to engage in derivatives trading

municipalities, 3.3.3(d)provincial government, 3.3.1(b)(vii)

preferences legislation, 8.8.4(b)securities and commodities legislation

Derivatives Act, App-475Policy Statement respecting Accredited Counterparties, App-550Policy Statement respecting Hybrid Products, App-551

INDEX


Policy Statement respecting Self-Certification, App-553Que. Reg. M.O. 2009-01 Derivatives Regulation, App-524Que. Reg. O.C. 93-2009 Tariffs for costs and fees payable in respectof derivatives, App-547Schedule A, Risk Information Document, App-535Schedule B, Application for Qualification, App-539Schedule C, Application for Authorization to Market a Derivative,App-546

securities regulatory instrumentsCanadian Representation Letter #1: Trade Reporting and OtherObligations, App-237Regulation 91-506 Respecting Derivatives Determination, App-578.1Regulation 91-507 Respecting Trade Repositories and DerivativesData, App-578.3

transfer annex form, characterization in, 9.2.3(c)(iv)

Quebec Derivatives Act, App-475derivatives dealer and adviser registration requirements, 10.1.3(e)exemption for exchange-traded derivatives involving ‘‘accreditedcounterparties”, 10.1.3(h)exemption for OTC derivatives involving ‘‘accredited counterparties”,10.1.3(g)generally, 10.1.3(a)hybrid products, 10.1.3(i)non-regulated entities and their derivatives, authorization of, 10.1.3(d)obligations of registrants, 10.1.3(f)other prohibitions, 10.1.3(j)‘‘regulated entities”, recognition of, 10.1.3(c)regulation of OTC and exchange-traded derivatives activities, 10.1.3(b)

recouponing,alternative to collateralization, 9.3

payments, tax implications of, 11.6.2

regulatory issuesAlberta

exemption orders and rules, 10.1.4(c)‘‘futures contract” definition, 10.1.4(b)Securities Act amendments, 10.1.4(d)‘‘security” definition includes exchange contracts and OTCderivatives, 10.1.4(a)

British Columbiaexemption orders and rules, 10.1.4(c)‘‘futures contract” definition, 10.1.4(b)

INDEX

Index-16

‘‘security” definition includes exchange contracts and OTCderivatives, 10.1.4(a)

commodity futures laws, current, 10.1.1disclosure, 10.1.10(d)federal regulatory initiatives, 10.4

OSFI Guidelines on Derivatives, 10.4.2principal protected notes, 10.4.1

foreign bank provisions of federal banking laws, 10.3FX contracts and contracts for differences, 10.1.7insider reporting of OTC derivatives

exemptions, 10.1.10(c)generally, 10.1.10(b)

insider trading issues, 10.1.10(a)insurance laws and OTC credit derivatives

application, 10.2.1, 10.2.4contracts of insurances, whether credit derivatives qualify as, 10.2.3regulatory framework and enforceability, 10.2.2

Manitoba, commodity futures contracts and options, 10.1.6(c)New Brunswick


Newfoundland and Labrador, 10.1.5Northwest Territories, 10.1.5Nova Scotia, 10.1.5Nunavut, 10.1.5Ontario

commodity futures contracts and options, 10.1.6(a)OTC derivatives, 10.1.6(b)

permitted uses of derivatives by investment fundsdisclosure requirements, 10.1.8(e)generally, 10.1.8(a)registration requirements, 10.1.8(d)restrictions on use of specified derivatives, 10.1.8(c)specified derivatives, 10.1.8(b)

Prince Edward Island, 10.1.5Quebec Derivatives Act

derivatives dealer and adviser registration requirements, 10.1.3(e)exemption for exchange-traded derivatives involving ‘‘accreditedcounterparties”, 10.1.3(h)exemption for OTC derivatives involving ‘‘accreditedcounterparties”, 10.1.3(g)

INDEX


generally, 10.1.3(a)hybrid products, 10.1.3(i)non-regulated entities and their derivatives, authorization of, 10.1.3(d)obligations of registrants, 10.1.3(f)other prohibitions, 10.1.3(j)‘‘regulated entities”, recognition of, 10.1.3(c)regulation of OTC and exchange-traded derivatives activities,10.1.3(b)

reformcentral counterparty clearing, 10.1.2(g)cleared transactions, collateral segregation and portability, 10.1.2(d)derivatives trading facilities, 10.1.2 (i)derivatives registration, 10.1.2(f)end-user exemption, 10.1.2(e)margin for uncleared swaps, 10.1.2(h)proposed reform, 10.1.2(a)surveillance and enforcement, 10.1.2(c)trade repositories and trade reform, 10.1.2(b)

Saskatchewanexemption orders and rules, 10.1.4(c)‘‘futures contract” definition, 10.1.4(b)‘‘security” definition includes exchange contracts and OTCderivatives, 10.1.4(a)

self-regulatory organizations — IIROC, 10.1.9Yukon Territory, 10.1.5

risk, management of, see also commodity price risk, credit risk, currency rate risk,interest rate risk, management of

commodity price risk, 1.8.1credit risk, 1.9currency rate risk, 1.6deteriorating credit risk, 9.6interest rate risk, 1.5weather derivatives, 1.10.1

Saskatchewangovernment capacity to engage in derivatives trading, 3.3.1(b)(viii)regulatory issues


securities regulatory instrumentsCompanion Policy, App-601

INDEX

Index-18

General Order 91-907 — Over-the-Counter Derivatives, App-597Notice 2009/11f — Notice — General Order 91-907 Over-the-Counter Derivatives, App-594Notice 2011/01c — Order — Ronald Jerry Fast — General Order 91-907 — Over-the-Counter Derivatives, App-602

The Securities Act, selected sections, App-561

securities and commodities legislationAlberta

Securities Act, selected sections, App-559British Columbia

proposed derivatives-related legislation, App-301Securities Act, selected sections, Bill 38, App-303Securities Act, selected sections, App-305

FederalDraft Capital Markets Stability Act, App-576.1Revised Consultation Draft, August, 2015, App-576.44

ManitobaMan. Reg. 179/99 Commodity Futures Fees Regulation, App-469Man. Reg. 180/99 Commodity Futures Rule-Making Regulation,App-472The Commodity Futures Act, App-427

New BrunswickSecurities Act, selected sections, App-565

Newfoundland and LabradorSecurities Act, selected sections, App-569

Northwest TerritoriesSecurities Act, selected sections, App-575

Nova ScotiaSecurities Act, selected sections, App-567

NunavutSecurities Act, selected sections, App-571

Ontariocommodity futures, App-313Commodity Futures Act, App-319Ontario Commodity Futures Act Advisory Committee Final Report,App-381OSC Rule 14-502, Designation of Additional Commodities, App-315Companion Policy to OSC Rule 14-502, App-316Securities Act, selected sections, App-377

QuebecDerivatives Act, App-475Policy Statement respecting Accredited Counterparties, App-550Policy Statement respecting Hybrid Products, App-551

INDEX


Policy Statement respecting Self-Certification, App-553Que. Reg. M.O. 2009-01 Derivatives Regulation, App-524Que. Reg. O.C. 93-2009 Tariffs for costs and fees payable in respectof derivatives, App-547Schedule A, Risk Information Document, App-535Schedule B, Application for Qualification, App-539Schedule C, Application for Authorization to Market a Derivative,App-546

SaskatchewanThe Securities Act, selected sections, App-561

YukonSecurities Act, selected sections, App-573

securities regulatory instrumentsAlberta

Alberta Securities Commission Notice Blanket Order 91-506 Over-the-Counter Trades in Derivatives, App-589

British ColumbiaBCN 2009/32 Adoption of BC Companion Policy 91-502CP, App-587Blanket Order 91-501 Over-The-Counter Derivatives, App-579Companion Policy to Blanket Order 91-501, App-583Blanket Order 91-502 Short Term Foreign Exchange Transactions,App-585Blanket Order 91-503 Contracts Providing for Physical Delivery ofCommodities, App-58891-502CP Short Term Foreign Exchange Transactions (CP), App-586

CanadaDraft Guideline — Derivatives Sound Practices, App-800.1Multilateral Instrument 55-103 [Repealed] Insider Reporting forCertain Derivative Transactions (Equity Monetization), App-618.75Companion Policy to Multilateral Instrument 55-103, App-622National Instrument 55-104 Insider Reporting and ConsequentialAmendments, App-665Companion Policy 55-104CP, App-651, App-679Notice and Request for Comment 55-104, App-633National Instrument 81-201 Mutual Funds, App-693Companion Policy 81-102CP, App-772

ManitobaManitoba Securities Commission Rule 91-506 Derivatives: ProductDetermination, App-616.25Companion Policy 91-506CP Derivatives: Product Determination,App-616.28

INDEX

Index-20

Manitoba Securities Commission Rule 91-507 Trade Repositories andDerivatives Data Reporting, App-616.38Companion Policy 91-507CP Trade Repositories and DerivativesData Reporting, App-616.79

Canadian Representation Letter #1: Trade Reporting and OtherObligations, App-237

Notice of Manitoba Securities Commission, App-616.1New Brunswick

Amended Local Rule 91-501 Derivatives, App-607New Brunswick Securities Commission Form 91-501F1 — RiskInformation Document, App-613

OntarioOntario Securities Commission Rule 91-506, App-617Companion Policy 91-506CP, App-618.1Ontario Securities Commission Rule 91-507, App-618.11Companion Policy 91-507CP, App-618.48

QuebecRegulation 91-506 Respecting Derivatives Determination, App-578.1

(Continued on page Index-21)

INDEX

Index-20.1 (Derivatives) (2016–Rel. 1)

Regulation 91-507 Respecting Trade Repositories and DerivativesData, App-578.3

SaskatchewanCompanion Policy, App-601General Order 91-907 — Over-the-Counter Derivatives, App-597Notice 2009/11f — Notice — General Order 91-907 Over-the-Counter Derivatives, App-594Notice 2011/01c — Order — Ronald Jerry Fast — General Order 91-907 — Over-the-Counter Derivatives, App-602

Securities Transfer Actcustodian insolvency, effect of, 8.7.4(a)generally, 8.2insolvency proceedings and, 8.7.4(b)

security agreementsbankruptcy and winding-up, effect on enforcing security

liquidation of collateral, 8.6.3(a)set-off, 8.6.3(b)

capacityCrown corporations, 8.4.3federal financial institutions, 8.4.1governments and Crown corporations, 8.4.3mutual funds, 8.4.4provincial financial institutionsinsurance companies, 8.4.2(b)loan and trust corporations, 8.4.2(a)pension funds, 8.4.2(c)

documentationcredit support annex, 8.3.2, see also credit support annex, scheduleto ISDA Master Agreementstandard forms, 8.3.1

market for secured transactions, 8.1priority claim against collateral

certificated securitiesconflict of laws, 8.5.3(a)perfection, 8.5.3(c)priority, 8.5.3(d)protected purchasers, 8.5.3(e)

validity, 8.5.3(b)conflict of laws, 8.5.2depository bills and notes, 8.5.8futures contracts, 8.5.6

INDEX


holder in due course under Bills of Exchange Act, 8.5.7indirectly held financial assets

conflict of laws, 8.5.5(a)perfection, 8.5.5(c)priority, 8.5.5(d)validity, 8.5.5(b)

perfecting security interest in cash, 8.5.1uncertificated securities

conflict of laws, 8.5.4(a)perfection, 8.5.4(c)priority, 8.5.4(d)protected purchasers, 8.5.4(e)validity, 8.5.4(b)

proposals and restructurings, effect on enforcement of securityexemptions from priming orders, 8.6.5(b)stays on actions against debtor’s property, 8.6.5(a)

receivership orders, 8.6.4recent developments, 8.2restructuring stay, 5.6.5statutory stay exemptions

bankruptcy and winding-up, effect on enforcing security, 8.6.3eligible financial contracts exemption, 5.6.3, 8.6.6generally, 8.6.1Payment and Settlement Clearing Act, 8.6.2proposals and restructurings, effect on enforcement of security, 8.6.5receivership orders, effect of, 8.6.4

set-off of collateral value, see collateral provider, considerations for

set-off rights in master agreementsaffiliates, claims to and by, 6.6.3bankruptcy, 6.6.2generally, 6.6.1winding-up, 6.6.2

specific sections of ISDA Master Agreement, see master agreements, enforcementof provisions

Springwell Navigation Corporation v. JP Morgan Chase Bank, 7.4, see alsoderivatives relationships, duties owed in, fraudulent or negligent statements, dutynot to make

statutory stay exemptions, see security agreements

suitability, see derivatives relationships, duties owed in, regulatory standards andsuitability

INDEX

Index-22

swap contracts, 1.3.2

swaps, generally, see also commodity price risk, credit risk, currency rate risk, andinterest rate risk, management of

basic swaps, 1.5.2commodity swaps, 1.8.1credit default swaps and options, 1.9.2credit spread swap, 1.9.4currency swaps, 1.6.1delayed variable rate reset swaps, 1.5.6differential or ‘‘quanto” swap, 1.6.2equity index swaps, 1.7.1foreign currency asset swaps, 1.6.3forward swaps, 1.5.3interest rate swaps, 1.5.1plain vanilla swap, 1.5.1portfolio/basket swaps, 1.9.6quanto swap, 1.6.2swap contracts, 1.3.2taxation, 11.2.3(b)total return swaps, 1.9.3zero coupon swap, 1.5.7

swaptionsgenerally, 1.5.4taxation timing issues, 11.3.4(b)

taxationcharacterization of transactions

administrative positionscommodity contracts, 11.2.3(a)forward contracts, 11.2.3(c)futures contracts, 11.2.3(d)options, 11.2.3(e)swaps, 11.2.3(b)generally, 11.2hedging transactions, 11.2.2purpose of transaction, 11.2.1

compensation based on an index or rate, 11.4.3credit support mechanisms

collateralization, 11.6.1prepayments, 11.6.3recouponing payments, 11.6.2

debt instruments convertible to equity, 11.4.2equity instruments, 11.4.4

INDEX


exchangeable debt, 11.4.1generally, 11.1party to transaction, character of

foreign property rules and tax-exempt entities, 11.5.5generally, 11.5.1income vs. capital account, 11.5.3sourcing of income, 11.5.4tax-exempt deferred income plans, special rules, 11.5.6tax-exempt entities, 11.5.2

timing issuesaccrued gains and losses, realization of, 11.3.2generally, 11.3.1premiums, 11.3.4options on securities, 11.3.4(a)premiums in off-market transactions, 11.3.4(c)swaptions, 11.3.4(b)termination payments, 11.3.3

withholding taxes, 11.7

termination and close-out netting rights, enforceability ofBankruptcy and Insolvency Act

entities, application of Act to, 5.4.3(a)proceedings, 5.4.3(c)proposals, treatment of derivative contracts under, 5.4.3(b)

Canada Deposit Insurance Corporation Actrestructuring regime, 5.6.1statutory provisions, 5.6.2conditional stay, 5.6.2(b)temporary stay, 5.6.2(a)

Canadian approach, 5.2.1Companies Creditors’ Arrangement Act

entities, application of Act to, 5.7.1statutory provisions, 5.7.2

eligible financial contractscommodity contracts, 5.2.2.(c)criteria relevant to transactions, 5.2.2(b)generally, 5.2.2(g)

importance of, 5.1insolvency laws

Bankruptcy and Insolvency Act, 5.4.3description of insolvency regimes, 5.4.2federal vs. provincial jurisdiction, 5.4.1

insolvency regimesapplication of, 5.2.1

INDEX

Index-24

description, 5.4.2effect of, 5.2.1

mutual funds, 5.8.2Payment Clearing and Settlement Act

agreements, application of s. 13, 5.3.5entities, application of s. 13, 5.3.4insolvency regimes, application of s. 13, 5.3.3provisions, 5.3.1purpose of s. 13, 5.3.2

pension funds, 5.8.3trusts, 5.8.1Winding-Up and Restructuring Act

application of, 5.4.4(a)statutory provisions, 5.4.4(b)

termination rights in master agreementsbankruptcy events in default, 6.4.2cross-default, 6.4.1

Terra Securities Asa Konkursbo. V. Citigroup, Inc., 7.4, see also derivativesrelationships, duties owed in, fraudulent or negligent statements, duty not to make

total return swaps, 1.9.3

trading, see capacity and authority to engage in derivatives trading and derivativestrading, regulatory issues

transfer annex formISDA Transfer Annex, 9.2.1language and concepts, consistency of, 9.2.3(c)(ii)Quebec, characterization in, 9.2.3(c)(iv)securing purpose, 9.2.3(c)(iii)substance over form, 9.2.3(c)(i)

trust and loan corporations engaging in derivatives trading, 3.4.3

trusts, termination and close-out netting rights, 5.8.1

uncertificated securities, priority claim against collateralconflict of laws, 8.5.4(a)perfection, 8.5.4(c)priority, 8.5.4(d)protected purchasers, 8.5.4(e)validity, 8.5.4(b)

weather derivatives, 1.10.1

Winding-Up and Restructuring Act (Can.)application of, 5.4.4(a)

INDEX


close-out netting and collateral enforcement, App-1026.2creditor preference and fraudulent conveyances

contracts, fraudulent conveyances and, 8.8.3(b)generally, 8.8.3(a)payments within 30 days of winding-up, 8.8.3(d)unjust preferences, 8.8.3(c)

eligible financial contracts, App-1046statutory provisions, 5.4.4(b)

Yountville Investors LLC v. Bank of America, N.A., 7.4, see also derivativesrelationships, duties owed in, fraudulent or negligent statements, duty not to make

Yukon Territoryregulatory issues, 10.1.5Securities Act, selected sections, App-573

zero coupon swap, 1.5.7

INDEX

Index-26

index current to release 2016-2index current to release 2016-2 all references are to section...

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