Canadian Investment Regulatory Organization - Request for Comment - republication of proposed amendments regarding margin requirements for structured products

Canadian Investment Regulatory Organization - Republication of proposed amendments regarding margin requirements for structured products - Request for Comments
Canadian Investment Regulatory Organization - Appendix to IDPC Rules and Form 1 - Blackline Proposed Amendments
Canadian Investment Regulatory Organization - Board Resolution

The Canadian Investment Regulatory Organization (CIRO) is republishing, for a 60 day comment period, revisions to the previously proposed amendments that would allow qualifying structured products to be margin eligible (the Proposed Amendments). 

The main purpose of the Proposed Amendments is to set margin methodology for structured products which considers the different risk profiles of the two main structured product types. The Proposed Amendments would require a fixed margin rate of 50% for principal at risk notes and 40% for principal protected notes that meet eligibility criteria, clarify the requirements for reporting concentration exposures is structured products on Form 1, and maintain the allowance of an alternative component-based margin methodology. The revised Proposed Amendments include changes to address comments received on the amendments that were published for comment in 2021 in IIROC Notice 21-0032.

CIRO’s notice sets out the process for submitting comments.

Published: July 20, 2023