ASIC Aims to Simplify the Derivative Transaction Rules – Key Points from CP 334


ASIC has released Consultation Paper 334 (CP 334) as part of its initiative to align its requirements for OTC derivative transaction reporting with those of other major jurisdictions. The aim is to harmonise ASIC’s requirements with burgeoning international standards for transaction, product and party identifiers and transaction data elements.  Similar processes are occurring in respect of requirements under ESMA (for EMIR reporting) and CFTC as well as other major jurisdictions subject to the G20 commitment on derivative reporting.

What’s changing?

ASIC’s focus is on rules changes that facilitate standardisation of the following:

1. Unique Transaction Identifier (UTI)

The UTI is a globally unique transaction identifier used in derivative transaction reporting by each party to the transaction so that each reported transaction is solely identified by a single UTI. ASIC is seeking to align its rules with international practices.

2. Unique Product Identifier (UPI)

The UPI is a globally unique product identifier to be used in derivative transaction reporting to identify the type of derivative that is the subject of the transaction. ASIC proposes to implement the CPMI IOSCO UPI Guidance to specify UPIs in derivative transaction reporting along with other jurisdictions.

3. Critical Data Elements (CDE)

The CDE is a set of derivative transaction data elements in specified data types and formats and, where relevant, allowed values. ASIC proposes to implement the CPMI IOSCO CDE Guidance which improves and simplifies the ASIC Rules dataset and better aligns with the reporting requirements in other jurisdictions.

4. Legal Entity Identifier (LEI)

ASIC aims to only use LEIs as the only allowable entity identifier in OTC derivative transaction reporting for all eligible relevant entities. For more information, read our recent article on ASIC’s call to remove AVID and BIC as entity identifiers. 

CP 344 also includes a review of a number of other rules elements including:

  1. removal of outdated transitional implementation provisions;
  2. consolidating reporting exemptions within the ASIC Rules;
  3. coverage scope of reporting entities;
  4. coverage scope of reportable transactions;
  5. coverage scope of lifecycle reporting;
  6. alternative reporting provisions; and
  7. delegated reporting provisions.

Why are the proposed changes important?

The proposed changes are an attempt to align ASIC with international objectives and standards.  Trade reporting obligations have an inherent interdependency among all jurisdictions due to the international nature of the derivative transactions which occur. For example, a globally unique UTI will depend on all jurisdictions’ rules in all circumstances producing the outcome that both parties (when complying with the rules of their jurisdiction) know which of the parties will generate the UTI.

When will the updates be implemented?

As the final rules of most international jurisdictions are yet to be settled, ASIC is planning for two rounds of consultation throughout 2021. The second consultation expected in Q2 of 2021 will outline final proposals taking into account responses to CP 334, further rules development in foreign jurisdictions and any other developments in the international standards themselves. Therefore, we can expect the rules to be finalised in Q3-Q4 of 2021 and implemented the following year.


CP 334 sets out to ‘modernise’ the ASIC Derivative Transaction Rules (Reporting) 2013 (ASIC Rules) in accordance with the proposed rule changes by the Commodity Futures Trading Commission (CFTC) and by the European Securities and Markets Authority (ESMA) in 2020.

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