FIA working with Canadian regulators to obtain relief for foreign brokers
The FIA Law & Compliance Committee is working with regulators in Ontario and Quebec to provide relief from registration requirements for non-Canadian firms that hold cleared trades for Canadian customers.
Under the relief proposed by FIA, non-Canadian clearing firms would be able to hold client positions that are executed on a Canadian futures exchange by a locally registered executing broker and then "given up" to the non-Canadian clearing firm.
FIA has explained to the Canadian regulators that this would allow current business practices to continue. Under this type of give-up arrangement, customers are able to hold their positions in a global account and benefit from collateral efficiencies and consolidated reporting. At the same time, trades executed on Canadian exchanges would be executed by a locally registered broker and cleared by a locally registered clearing firm.
