Australia – December 4 reporting deadline looming – Are you ready?

Some Australian issuers of OTC derivatives will need to report for the first time their reportable transactions and reportable positions.

Under the ASIC Derivative Transaction Rules (Reporting) 2013 as amended (the Reporting Rules), Australian issuers of OTC derivatives (with less than A$5 billion gross notional outstanding positions as at 30 June 2014) will need to report for the first time from 4 December 2015 their reportable transactions, and from 6 June 2016 their reportable positions.

What Information or Data Needs to Be Reported?

Under Reporting Rule 2.2.1, a reporting entity must report specified information, including information about:

  • each of its reportable transactions; and
  • each of its reportable positions.

For Phase 3 entities (essentially those with less than A$5 billion gross notional outstanding positions as at 30 June, 2014), reporting of information for each reportable transaction as set out in Part S2.1 of Schedule 2 to a relevant repository is required, and reporting of information for each reportable position as set out in Part S2.2 of Schedule 2 to a relevant repository is required.

Part S2.1 of Schedule 2 essentially requires data items for each reportable transaction as listed in the tables there.

The requirements in Part S2.1 of Schedule 2 are divided into two categories: common data and data specific to each asset class. Reporting entities are required to report on the following specific asset classes:

  • credit derivatives;
  • commodity derivatives (other than electricity derivatives);
  • interest rate derivatives;
  • foreign exchange derivatives; and
  • equity derivatives.

TRAction Fintech can assist Phase 3B entities with their OTC derivatives reporting.

Read More on Finance Magnates.

This article was written by Patricia Tsang of Sophie Grace Legal.

Leave a Reply