ASIC clearing new OTC derivatives rules.
By Sums on Wednesday,
The Commission on Securities and Investments Australia (ASIC). Some days ago announced ASIC clearing new OTC derivatives rules. The rules published after a hearing on this subject was opened in May this year.
ASIC new derivatives rules also complements regulation adopted in September 2015, which sets the parameters for the high-level mandatory clearing regime. The key role of the system of mandatory central clearing is to ensure the reduction of systemic risk in the OTC derivatives markets. It also applies to transactions in interest rate derivatives OTC denominated in Australian dollars interest rate derivatives AUD Change. And in dollars, euros, British pounds Japanese yen interest rate derivatives G4 between OTC derivatives dealers. About ASIC clearing new OTC derivatives rules actually it applies to transactions in interest rate derivatives OTC denominated in Australian dollars, US dollars, euros, British pounds and Japanese yen between distributors of OTC derivatives.
In line with the requirements of mandatory compensation abroad, the regime also provides the basis for the determination of compliance or replaced by foreign regulators sufficient equivalence. This will help to achieve significant cost savings for participants from Australia and facilitate access to world markets by participants from Australia and infrastructure.
About ASIC clearing new OTC derivatives rules ASIC Commissioner Cathie Armour said, ‘This is another major milestone for Australia in its implementation of reforms to the OTC derivatives market. ‘This regime will help to reduce systemic risk in Australia by requiring key interest rate derivatives traded between the largest derivatives dealers to be centrally cleared. The rules have been designed taking into account the mandatory clearing requirements in other jurisdictions in which Australian financial institutions operate. We will work with overseas regulators to determine whether or not equivalence or substituted compliance treatment is available as this will assist Australian financial institutions manage implementation of the regime’, Ms Armour also added about ASIC clearing new OTC derivatives rules.