Final rules around over-the-counter (OTC) derivatives trade reporting obligations of financial institutions and the regulation of derivative trade repositories in Australia have been released.
The regime is set out in a package of rules and guidance released by ob体育 today on a new OTC derivatives reform webpage 鈥� including the ob体育 Derivative Transaction Rules (Reporting) 2013, ob体育 Derivative Trade Repository Rules 2013, Regulatory Guide 249 Derivative trade repositories (RG 249), and explanatory statements and FAQ material.
The Australian reforms have been designed to ensure, as far as possible, consistency with international requirements as well as to maximise the prospects of substituted compliance or sufficient equivalence judgments being reached by foreign regulators. This would help ensure that global markets remain open to Australian participants and infrastructures.
鈥楾his is a major step for Australia in its implementation of reforms to the OTC derivatives market,鈥� ob体育 Commissioner Cathie Armour said.
鈥楾his regime is designed to better enable regulators to identify systemic risk concerns and potential market abuse, by enhancing the transparency of information to regulators and the market.鈥�
The final package follows consultations launched in March 2013 (refer 13-051MR and 13-066MR). While final trade reporting rules are in place, final regulatory guidance on those rules is expected to be published in coming weeks. In the meantime, FAQ material on the trade reporting rules has been published.
The reporting rules 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.
Derivative trade repositories, or data warehouses, maintain electronic databases of records of derivative transactions. The rules for these repositories cover issues such as application requirements and conditions, the manner in which they must provide their services, and ob体育's approach to regulation of overseas-based repositories.
End users of OTC derivatives (i.e. those that are not financial institutions or intermediaries) will not be covered by the reporting regime. ob体育 will consult on their reporting obligations later this year.
Read:
FAQs on ob体育 Derivative Transaction Rules (Reporting) 2013
Download:
Report 356 Response to submissions on CP 201 Derivative trade repositories (REP 356)
Report 357 Response to submissions on CP 205 Derivative transaction reporting (REP 357)
OTC derivatives reform webpage
Editor's note:
ob体育 published Regulatory Guide 251 Derivative transaction reporting (RG 251) in August 2013