4.1 Trade Reporting

The Report noted that trade reporting is not well entrenched in the Australian OTC derivatives market.  There is some evidence of an increased uptake in trade reporting by larger market participants.  In the near term some of the domestic and foreign participants in the Australian OTC derivatives market are expected to be required to report OTC transactions executed in US and EU markets (or undertaken with US and EU counterparties) in compliance with regulatory regimes being developed in those jurisdictions.  Outside of these requirements, however, an industry-led transition to trade reporting in the Australian market would not seem likely in the near term.