The Australian Securities and Investments Commission (ASIC) has released final rules around over-the-counter (OTC) derivatives trade reporting obligations for financial institutions.
The Government began consultation with industry on the matter earlier this year in March.
The then Minister for Financial Services and Superannuation, Bill Shorten, had previously launched a discussion paper (in late 2011) that related to how retail clients and industry stakeholders were using client money accounts in relation to OTC derivatives transactions.
According to ASIC, the new reporting rules and regulatory guidance set out on a new OTC derivatives reform web page establish which entities will need to report to trade repositories, what information will need to be reported, and when the reporting obligation will start for different classes of reporting entities and different instrument types.
ASIC stated that the reforms had been designed to ensure consistency with international requirements and to ensure that global markets remain open to Australian participants and infrastructures.
"This is a major step for Australia in its implementation of reforms to the OTC derivatives market," ASIC Commissioner Cathie Armour said.
"This regime is designed to better enable regulators to identify systematic risk concerns and potential market abuse, by enhancing the transparency of information to regulators and the market."
While final trade reporting rules are in place, final regulatory guidance on those rules is expected to be published in coming weeks, ASIC stated.
The new rules for derivative trade repositories cover issues such as application requirements and conditions, and ASIC's approach to regulation of overseas-based repositories.
Under the new regime, end users of OTC derivatives will not be covered by the reporting regime, subject to an ASIC consultation with the industry later this year.
