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Over-The-Counter Derivatives Reform: Amendments to ASIC Derivative Transaction Rules (Reporting) 2013

Regulation Impact Statement – Australian Securities and Investments Commission

On 9 February 2015, the Australian Securities and Investments Commission (ASIC) amended the ASIC Derivative Transaction Rules (Reporting) 2013 (Rules). The amendments reduce compliance costs for reporting entities while ensuring that regulators continue to obtain comprehensive and complete derivative trade data. Key amendments include:

  • allowing end-of-day ‘snapshot’ reporting as a permanent reporting option;
  • allowing foreign entities to report to prescribed trade repositories in jurisdictions other than the jurisdiction in which they are incorporated;
  • requiring foreign entities that use alternative reporting arrangements to ‘tag’ transactions as being reported under the derivative transaction rules (reporting);
  • amending the definition of ‘regulated foreign market’ to provide certainty that derivatives traded on certain overseas markets are not required to be reported under the Rules;
  • requiring Australian reporting entities to report to a prescribed trade repository if a licensed trade repository is not available;
  • requiring foreign subsidiaries of Australian financial entities to report OTC derivative transactions, if the subsidiary meets a materiality threshold; and
  • amending the derivative transaction rules (reporting) for delegated reporting to provide a ‘safe harbour’ from enforcement action if certain conditions are met.

A Regulation Impact Statement (RIS) was prepared and certified by ASIC under the Australian Government’s best practice regulation requirements, and has been assessed as compliant and consistent with best practice by the Office of Best Practice Regulation (OBPR). The RIS estimates that the measure will provide a cost savings of $4.9 million a year to industry. The OBPR has agreed to this estimate of regulatory savings.