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The Ontario Securities Commission (OSC) published its 2024 Report on Canadian OTC Derivatives on June 4, 2025. This report is a significant resource for understanding the landscape of over-the-counter (OTC) derivatives markets in Canada.
Key Highlights and Purpose of the Report:
* Transparency and Overview: The primary purpose of the report is to consolidate publicly available data to provide transparency and summarize the key features and trends of Canada’s OTC derivatives markets throughout 2024. It aims to inform investors and other market participants.
* Market Size: For the first time in 2024, Canada’s OTC derivatives market surpassed the $100 trillion outstanding notional level. This indicates substantial growth and activity in this sector.
* Shift to Risk-Free Rates: The report notes a significant trend towards interest rate derivatives linked to risk-free rates (RFRs), moving away from products tied to Interbank Offered Rates (IBORs). This aligns with global efforts to transition from LIBOR and similar benchmarks.
* Largest Asset Classes:
* Interest rate derivatives continue to be the largest asset class when measured by outstanding notional amount.
* Currency derivatives hold the largest number of outstanding positions.
* Data Sources: The data presented in the report primarily comes from public sources, with some sections incorporating data exclusively available to the OSC through its collection efforts under OSC Rule 91-507: Trade Repositories and Derivatives Data Reporting. The OSC uses this data for policy development, compliance reviews, and monitoring systemic risk.
* Regulatory Context: The report comes amidst ongoing efforts by Canadian securities regulators (the Canadian Securities Administrators – CSA, of which the OSC is a member) to enhance and harmonize OTC derivatives reporting and business conduct rules. This includes:
* Amendments to trade reporting rules: Final amendments to streamline and harmonize OTC derivatives data reporting with global standards were published in July 2024, with a go-live date of July 25, 2025. These changes aim to improve data accuracy and consistency, reduce reporting complexity, and enable regulators to better identify risks.
* Derivatives Business Conduct Rule: A comprehensive regime regulating the business conduct of dealers and advisers in the OTC derivatives market came into force on September 28, 2024. This rule establishes fundamental obligations related to fair dealing, conflicts of interest, suitability, and recordkeeping, aimed at protecting market participants and promoting responsible conduct.
In essence, the OSC’s 2024 Report on Canadian OTC Derivatives provides a snapshot of the market’s size, trends, and key characteristics, reflecting the ongoing evolution and regulatory advancements in Canada’s derivatives landscape.

Video courtesy of KDPW

Video courtesy of KDPW