In its earlier consultation the Australian Government provided the option for stakeholder comment that further analysis be conducted on the volume and liquidity characteristics of markets for particular derivative classes and the emergence of suitable trading platforms. Additionally, there may need to be further consideration of reform to Australia’s market licensing regime to better accommodate wholesale professional markets that may emerge to facilitate the execution of derivative transactions on trading platforms.
This option was generally supported by stakeholders.
The Report recommended that no obligations to use centralised trade execution of OTC derivatives transactions be put in place at this time. Additional work will be done before recommendations are made.
11. Do you have comments on the proposal to not impose trading obligations at this stage? Or is there another option you prefer? If so, why?