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The Reserve Bank of Australia, Australian Prudential Regulation Authority, and Australian Securities and Investments Commission (the regulators) have released a Report on the Australian OTC Derivatives Market.
This report constitutes the latest advice from the regulators to the Minister regarding mandatory requirements for trade reporting, central clearing and platform trading of over-the-counter (OTC) derivatives.
The report focuses primarily on the case for mandatory central clearing. Based on an assessment of current activity and practices in the Australian OTC derivatives market, and overseas developments, the regulators concluded that:
The regulators have not made a specific recommendation regarding a mandatory platform trading obligation at this time.
The regulators will continue to monitor developments in market participants' risk management practices – including collateralisation, trade compression and portfolio reconciliation.
The report also notes that with the finalisation of ASIC's trade reporting and trade repositories rules, Australia has introduced a broad-based mandatory trade reporting obligation for OTC derivatives.
Related Link:
http://www.cfr.gov.au/media-releases/2013/mr-13-03.html
This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author.
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