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Files fill office space rented in 2009 to hold legal documents required to implement the ABCP restructuring. Canada’s $32-billion market for non-bank ABCP collapsed in the summer of 2007.
Files fill office space rented in 2009 to hold legal documents required to implement the ABCP restructuring. Canada’s $32-billion market for non-bank ABCP collapsed in the summer of 2007.
(Tibor Kolley/The Globe and Mail)

Regulators redraft proposed rules on ABCP

Canada’s securities regulators have scrapped a set of proposed new rules to govern the sale of asset-backed commercial paper and have unveiled a streamlined new proposal that focuses more narrowly on the highest-risk products.

The change in direction on ABCP rules comes almost seven years after the meltdown of Canada’s $32-billion market for non-bank ABCP products in the summer of 2007 and after years of review by regulators to determine what needs to be done to protect investors from similar risks in the future.