The Reserve Bank of Australia, Australian Prudential Regulation Authority, and Australian Securities and Investments Commission (the regulators) have released a Report on the Australian OTC Derivatives Market – July 2013.
This report constitutes the latest advice from the regulators to the Minister regarding mandatory requirements for trade reporting, central clearing and platform trading of over-the-counter (OTC) derivatives.
The report is available at the Council of Financial Regulators (CFR) website. http://www.cfr.gov.au/
ASIC have now consolidated a range of information about OTC derivatives reforms on the new ASIC OTC derivatives reform webpage.
A number of regulations have been made to facilitate the operation of Australia’s derivatives trade reporting regime in Part 7.5A of the Corporations Act 2001.
In May 2013 the Deputy Prime Minister and Treasurer made a Determination, Corporations Derivatives (Determination) 2013, to allow reporting obligations to be imposed across all five derivatives asset classes: commodity derivatives that are not electricity derivatives; credit derivatives; equity derivatives; foreign exchange derivatives; and interest rate derivatives.
The trade reporting obligations apply following the entry into force of the Australian Securities and Investments Commission (ASIC) rules for trade repositories and trade reporting. ASIC consulted on rules for trade repositories and trade reporting in March and April 2013 which came into effect in July 2013 following the Minister’s consent.
The Corporations Amendment (Derivatives Transactions) Regulations 2013 facilitate the operation of Australia’s derivatives trade reporting regime in Part 7.5A of the Corporations Act 2001. The regulations include restrictions on ASIC’s rule making power in relation to end users and operational measures to ensure the trade reporting regime has appropriate regulations governing the enforcement of trade reporting rules and regulations for confidential information.
Go to this regulation
A list of prescribed trade repositories has also been established by regulation.
Go to this regulation
This instrument determines the classes of derivatives in relation to which reporting requirements may be imposed, allowing the Australian Securities and Investments Commission to make derivative transaction rules in relation to the five derivative classes (interest rate, foreign exchange, credit, equity and all commodities except electricity derivatives).
Link to Corporations (Derivatives) Determination 2013
At the G-20 summit in Pittsburgh in 2009, following the global financial crisis, the Australian Government joined other jurisdictions in committing to substantial reforms to practices in OTC derivatives markets.
Go to this publication