Regulation Impact Statement – Australian Securities and Investment Commission (ASIC)
On 11 December 2015, the Australian Securities and Investments Commission (ASIC) released rules implementing Australia's mandatory central clearing regime for over-the-counter (OTC) interest rate derivatives denominated in Australian dollars (AUD interest rate derivatives), and in US dollars, euros, British pounds and Japanese yen (G4 interest rate derivatives). The rules are intended to reduce systemic risk in OTC derivatives markets, and to provide the basis for substituted compliance or sufficient equivalence determinations by foreign regulators. This will help to reduce costs for Australian participants and facilitate access to global markets by Australian participants and infrastructures. A Regulation Impact Statement (RIS) prepared by ASIC has been assessed as compliant and consistent with best practice by the Office of Best Practice Regulation. The RIS estimates the average annual regulatory cost saving at $8.2 million per annum. The OBPR has agreed to the regulatory cost saving.