Central clearing of OTC derivatives

what are otc derivatives

On 28 May 2015, ASIC published for consultation mandatory central clearing rules and a consultation paper on the rules. The central clearing rules would implement an Australian central clearing mandate for OTC interest rate derivatives denominated in Australian dollar and four global currencies, limited to trades between internationally active dealers. On the same day, Treasury published for consultation a package consisting of a draft Ministerial determination setting out the clearing regime product scope and amendments to the Corporations Regulations 2001.

  • Read the ASIC consultation package, Consultation Paper 231 Mandatory central clearing of OTC interest rate derivative transactions. 28 May 2015
  • Read the Treasury consultation package, OTC derivatives central clearing and Single-sided trade reporting. 28 May 2015

On 8 July 2014, in line with a recommendation made by the Council of Financial Regulators (CFR), Treasury published a proposals paper recommending a central clearing mandate for interest rate derivatives denominated in Australian dollars. The paper consulted stakeholders on a proposal to combine the recommended mandatory central clearing of interest rate derivatives denominated in US dollars, euros, British pounds and Japanese yen (G4 interest rate derivatives) and the mandatory clearing of interest rate derivatives denominated in Australian dollars into a single determination to be issued by the Minister. The consultation period closed on 1 August 2014.

In April 2014, the CFR

released a report recommending Government consider implementing a mandatory clearing obligation for overt-the-counter (OTC) transactions in Australian dollar interest rate derivatives for internationally-active dealers.

On 27 February 2014, Treasury published a proposals paper recommending a central clearing mandate for OTC derivative transactions. The consultation period closed on 10 April 2014.

In July 2013, the CFR recommended that Government mandate central clearing of OTC transactions among internationally-active dealers in interest rate derivatives denominated in G4 interest rate derivatives.

On 8 May 2013, the CFR published information about how they will assess the case for a clearing mandate under the new regulatory framework for OTC derivatives markets. The regulatory framework provides for the CFR to advise the Minister in relation to a clearing mandate, which would require clearing of specified classes of OTC derivatives subject to ASIC rules.

  • Read the Treasury proposals paper. Central clearing of OTC AUD interest rate derivatives, July 2014 
  • Read the CFR report. Report on the Australian OTC Derivatives Market. April 2014 
  • Read the Treasury proposals paper. Implementation of Australia’s G-20 over-the-counter derivatives commitments: G4-IRD central clearing mandate, February 2014 
  • Read the CFR report. Report on the Australian OTC Derivatives Market. July 2013 
  • Read the CFR media release. 2013-02 Australian regulators' statement on assessing the case for mandatory clearing obligations. May 2013

Source: asic.gov.au

Category: Bank

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