ASIC Lifecycle Method Reporting
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Lifecycle Reporting Requirements
Since 21 October 2024, the ASIC Derivative Transaction Rules (Reporting) 2024 (2024 Rules) have required all OTC derivative products to be reported using the lifecycle method, with only small buy-side entities exempt from certain aspects.
Rule 2.2.8 of the 2024 Rules exempts the following from lifecycle reporting:
- small-scale buy-side transactions in all products except equity derivatives
ASIC considers the monitoring of reporting useful for monitoring market misconduct and the prevention of market abuse in these products.
What is the Difference Between Lifecycle and Snapshot Reporting?
Lifecycle reporting requires you to report the entry into, exit of, as well as any modification of an OTC derivative which occurred during the preceding business day. This is often referred to as ‘intraday reporting’.
Snapshot reporting, on the other hand, only requires you to report the positions which are open at the end of the business day. This is often referred to as ‘end-of-day reporting’.
If you would like to know more about how TRAction can assist you with lifecycle reporting or ASIC OTC derivative reporting generally, please contact us.
Previous Lifecycle Reporting Requirements
Prior to 20 October 2024, ASIC’s derivative transaction rules required reporting entities to use Lifecycle reporting for the following instrument types:
- CFDs;
- Margin FX;
- Equity derivatives.
Rule 2.2.8(3) of ASIC Derivative Transaction Rules (Reporting) 2022 allowed ASIC to determine certain derivatives to be “Excluded Derivatives” which requires lifecycle reporting, if ASIC concludes that the determination will have one of the following effects:
- enhance the transparency of information available to relevant authorities and the public;
- promote financial stability; or
- support the etection and prevention of market abuse.
You can access the ASIC instrument.
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