What is single-sided reporting?
Australia’s current OTC derivatives reporting regime requires both parties to a derivative transaction to report to an Australian Derivative Trade Repository (ADTR). However, there is relief under the current reporting regime to allow for single-sided reporting, i.e. where only one party is required to report under the Reporting Rules.
The relief will change slightly on 20 October 2025 and it is important firms check they will still qualify for the relief after that date or otherwise make arrangements to start reporting.
As of 20 October 2025, ASIC will remove the alternative reporting arrangements which currently operate as a form of substituted compliance. This will reduce the trade repositories (TRs) which will qualify for the single-sided relief provisions – only ADTRs will qualify.
Given the changes that will commence on 20 October 2025, we encourage firms to:
- ensure any current single-sided reporting arrangements they have in place are properly documented and compliant with the current provisions (‘single-sided’ exemption in regs 5A.71–7.5A.74 of the Corporations Regulations);
- consider the changes to single-sided relief which are coming and determine whether their firm should take pre-emptive steps to start reporting relevant transactions and reduce reliance on the single-sided relief where it involves the counterparty reporting to a ‘prescribed’ repository overseas – note, a crucial change is the de-prescribing of the current ‘prescribed’ repositories (discussed below in detail);
- discuss with counterparties who have provided single-sided relief in respect of their reporting to a ‘prescribed’ repository overseas whether they can offer reporting to an ADTR from or before 20 October 2025. Otherwise, arrangements to comply with the Reporting Rules will need to be implemented; and
consider whether the firm has transactions subject to the Exemption described below.
Current Single-Sided Relief – in place until 20 October 2025
To qualify for the single-sided reporting relief under the current framework, there are two requirements that must be satisfied:
1) Gross notional outstanding position must be less than A$5 billion for two consecutive quarters
The single-sided reporting relief will apply to:
- Authorised Deposit-taking Institutions (ADIs);
- Australian Financial Services Licensees (AFSLs);
- clearing and settlement facility licensees; and
- exempt foreign licensees,
with total gross notional outstanding position across all OTC derivatives of less than A$5 billion at the end of two consecutive calendar quarters.
If a reporting entity reaches the A$5 billion threshold for two consecutive quarters, the single-sided relief will cease to apply and full reporting obligations (i.e. dual sided reporting) will apply instead. This means that a reporting entity can move in and out of the relief depending on the changes in the size of their derivatives portfolio at the end of a calendar quarter.
2) The other counterparty is already required or has agreed to report
The reporting entity will also need to ensure the other party to the OTC derivative is a reporting entity:
- required to report information about the trade under the Reporting Rules and not relieved from that requirement under the single-sided relief; or
- who otherwise reports information about the trade under the Reporting Rules
.
If the other party does not satisfy any of the above (e.g. end customer is not a reporting entity), the relief will not be applicable even if the reporting entity can satisfy the first requirement.
What do I need to do if I want to apply single-sided relief?
If you wish to rely on the single-sided relief, you will need to communicate with your counterparty (reporting counterparty) and obtain a representation from them pursuant to Reg 7.5A.73 of Corporations Regulations 2001 (Cth) (note this is reg 7.5A.72 in the current single-sided relief provisions but is being updated from 20 October 2025). Although the legislation does not provide what representation is required, we have prepared a template letter which can be used – please contact us to obtain a copy.
New Single-Sided Relief – commencing 20 October 2025
- Main changes
As of 20 October 2025, trades with foreign firms will need to be reported by ASIC regulated firms irrespective of what the counterparty’s or liquidity provider’s reporting requirements are (i.e. assuming your counterparty / LP doesn’t report to ASIC).
That’s because under the new single-sided relief provisions in ASIC Rewrite, ‘prescribed’ repositories have been removed as an allowable reporting destination i.e. now you can only use ‘licensed ADTRs’ as listed on ASIC’s website. References to ‘prescribed’ repositories in relevant regulations will be removed. As new ADTR licences are granted, the names of such licensed ADTRs will be added to ASIC’s website.
Note that although the single-sided relief provisions are still applicable, ASIC regulated firms can start reporting in this manner now ahead of 20 October 2025. The other counterparty will just have to report to one of the ADTRs to comply with the new single-sided relief.
- Single-sided reporting exemption (Exemption)
There is an exemption for reportable transactions that are classified as ‘a modification, termination or assignment, or a change to the way a Reporting Entity records an OTC Derivative in its books and records, . . . that was reported to a Prescribed Repository before the removal of the alternative reporting provision.’
The overarching requirement under the Reporting Rules is that a reporting entity must report any changes in information relevant to an OTC transaction that has been previously reported. However with the exemption, there will not be a requirement to report changes in information relevant to the OTC transaction where the reporting was to a ‘prescribed’ repository before 20 October 2025. This reflects ASIC’s changes to only using ASIC’s licenced ADTRs.
Diagram for Single-sided relief decision-making from 20 October 2025
Use the diagram below to help determine whether the single-sided reporting exemption will be applicable to you after 20 October 2025:
If you need the diagram to determine whether you qualify for single-sided relief provisions which are in place between now and 20 October 2025, please do not hesitate to reach out to us.
How can TRAction help?
TRAction assists our clients to understand whether they are eligible to apply for the single-sided relief. Please contact us if you would like to know more about how TRAction can assist you.
References
ASIC Derivative Transaction Rules (Reporting) 2024 (Reporting Rules)
