FIA comments on Canadian customer protection proposal
On April 19, FIA filed a comment letter with Canadian regulators regarding new requirements for customer clearing and protection of collateral for OTC swaps positions. FIA said it supports the principles underlying the proposed rule, namely the protection of customer positions and collateral, but expressed concern that the rule may result in duplicative and unnecessarily burdensome regulatory requirements for U.S. FCMs transacting with Canadian counterparties. FIA emphasized that CFTC-regulated FCMs provide an equivalent level of protection to all of their customers, including their Canadian customers, and urged the Canadian regulators to adopt a substituted compliance regime.
