Draft regulation to facilitate the operation of Australia’s derivatives trade reporting regime

The Corporations Amendment (Derivatives Transactions) Regulation 2013 will facilitate the operation of Australia’s derivatives trade reporting regime in Part 7.5A of the Corporations Act 2001. 

In May 2013 the Deputy Prime Minister and Treasurer made a Determination, Corporations Derivatives (Determination) 2013, to allow reporting obligations to be imposed across all five derivatives asset classes: commodity derivatives that are not electricity derivatives; credit derivatives; equity derivatives; foreign exchange derivatives; and interest rate derivatives. 

The trade reporting obligations will apply following the entry into force of the Australian Securities and Investments Commission (ASIC) rules for trade repositories and trade reporting.  ASIC consulted on rules for trade repositories and trade reporting in March and April 2013, and expects to make these rules in July.  ASIC derivative transaction and trade repository rules cannot come into effect without the Minister’s consent. 

These draft regulations include restrictions on ASIC’s rule making power in relation to end users and operational measures to ensure the trade reporting regime has appropriate regulations governing the enforcement of trade reporting rules and regulations for confidential information. Subject to stakeholder feedback, the Government will aim to finalise these regulations shortly after the close of consultation.