Following this consultation, and subject to stakeholder feedback, the Minister will make an initial determination identifying derivatives that will be subject to the reporting mandate. The Minister will also expose for comment draft regulations clarifying the scope of ASIC rule making under the framework as appropriate.
ASIC will separately consult on draft rules and requirements for trade repository licensing in the first half of 2013.
APRA, ASIC and the Reserve Bank will conduct a second market assessment in 2013. This market assessment will focus on central clearing, particularly of AUD denominated IRS. It will also consider Australia’s position in relation to decisions to mandate derivatives in other jurisdictions. This analysis would consider whether there would be benefits to the Australian economy and/or the efficiency, integrity and stability of the Australian financial system from eliminating potential regulatory gaps by also mandating those derivatives in Australia.
Australian regulators will also provide urgent recommendation in between assessments, if required, in response to unexpected market developments in Australia or overseas.