Derivatives

The derivatives marketplace is global and requires an integrated team with global knowledge.

BLG is home to one of the largest and most experienced derivatives practices in North America, advising clients that transact in the derivatives markets in Canada and throughout the world. We also represent clients before Canadian regulators.

We can help you with:

novel derivative-based product structuring
development and negotiation of documentation
regulatory compliance
tri-party collateral control practices
establishing derivative trading platforms and marketplaces

We advise on compliance and registration requirements for, and negotiate derivative documentation with, sell-side and buy-side market participants.

We sit on the Ontario Securities Commission Advisory Committee and provide advice to the OSC on legislative and policy initiatives involving derivatives and the regulation of novel products. We are the sole legal counsel on the Investment Industry Regulatory Organization of Canada Crypto-Asset Working Group, which focuses on using the existing OTC derivatives framework to further the retail offering of digital assets. We are also the sole legal counsel on the Investment Industry Association of Canada Derivatives Committee and have been engaged to comment on the Derivatives Modernization Project and its impact on the dealer community.

Our clients include a wide variety of derivative end-users and dealers, including:

investment funds and asset managers
pension funds
financial institutions and insurance companies
commodity producers, real estate firms, risk management firms and other corporate end-users
investment dealers
futures commission merchants
market intermediaries
crypto market participants

BLG has been recognized as Canadian Law Firm of the Year in the Regulatory category, at the 2021 GlobalCapital Americas Derivatives Awards. Since its inception in 2014, GlobalCapital has every year recognized BLG as a leader among Canada’s law firms.

Experience

Developing leading-edge derivative-based products for investment funds, including alternative funds.
Advising derivatives participants on compliance with new global derivatives rules and regulations and developing compliance policies.
Obtaining extensive regulatory relief to permit a complex derivatives-based investment product to be offered to retail investors in Canada.
Worked with the Ontario Securities Commission to effectively change the law regarding the rehypothecation of collateral posted by investment funds for their derivatives positions.
Obtaining relief to permit Canadian mutual funds to enter into swaps mandated for central clearing by the U.S. Commodity Futures Trading Commission and by the European Securities and Markets Authority.
Assisting issuers of contract for differences with respect to retail offerings in Canada, including prospectus requirements and exemptions.
Acting for a U.K. CFD provider to obtain the first non-resident CFD dealer approval in Canada.
Acting for dealers in obtaining novel restricted dealer registration for block trades in futures and options on an exchange that is a designated contract market overseen by the CFTC.
Developed, advised and negotiated all derivative agreements on behalf of the largest Canadian residential mortgage securitization conduit.
Acting for global commodity producers to establish hedging programs.
Assisting clients with establishing online derivatives trading platforms using distributed ledger technology.
Developing risk management programs for market participants, including preparing best practices and policies for their boards and management.
Addressing complex collateral issues with Canadian and global derivatives participants.
Facilitating ongoing dialogues with Canadian securities regulators on policy concerns involving novel derivative instruments.

Developing leading-edge derivative-based products for investment funds, including alternative funds.
Advising derivatives participants on compliance with new global derivatives rules and regulations and developing compliance policies.
Obtaining extensive regulatory relief to permit a complex derivatives-based investment product to be offered to retail investors in Canada.
Worked with the Ontario Securities Commission to effectively change the law regarding the rehypothecation of collateral posted by investment funds for their derivatives positions.
Obtaining relief to permit Canadian mutual funds to enter into swaps mandated for central clearing by the U.S. Commodity Futures Trading Commission and by the European Securities and Markets Authority.
Assisting issuers of contract for differences with respect to retail offerings in Canada, including prospectus requirements and exemptions.
Acting for a U.K. CFD provider to obtain the first non-resident CFD dealer approval in Canada.
Acting for dealers in obtaining novel restricted dealer registration for block trades in futures and options on an exchange that is a designated contract market overseen by the CFTC.
Developed, advised and negotiated all derivative agreements on behalf of the largest Canadian residential mortgage securitization conduit.
Acting for global commodity producers to establish hedging programs.
Assisting clients with establishing online derivatives trading platforms using distributed ledger technology.
Developing risk management programs for market participants, including preparing best practices and policies for their boards and management.
Addressing complex collateral issues with Canadian and global derivatives participants.
Facilitating ongoing dialogues with Canadian securities regulators on policy concerns involving novel derivative instruments.