Under ASIC’s Reporting Rules, most Australian margin FX and CFD brokers are Reporting Entities that are required to report their transactions as they are considered to be over-the-counter (OTC) derivatives.
We take a look at what a trade repository or ASIC can surmise about your business from the data they receive.
ASIC is stepping closer to its final version of reform to its reporting requirements for derivative transactions. Further details of their proposals have been outlined in ASIC’s second Consultation Paper (CP) Proposed Changes to simplify the ASIC Derivative Transaction Rules (Reporting) 2013, incorporating further changes after its first round of consultation released in November 2020.
Globally there are a host of foreign exchange brokers which allow their customers to move currency to and from different countries and currencies. These companies are subject to different requirements based on the jurisdiction where they are based and the role they play in the market.
To date there has been no definitive position provided by either the regulation or ASIC guidance about the reportability of crypto.
U.S. President Joe Biden signed an executive order on 9 March 2022 to direct federal agencies to examine potential regulatory changes as well as the risks and benefits posed by cryptocurrencies.
ASIC introduced a product intervention order (Order) in October 2020, imposing restrictions on the issue and distribution of contracts for difference (CFDs) to retail investors. This decision came after the regulator’s finding that CFDs have resulted in, and are likely to result in, significant detriment to retail investors.
Are you aware of the penalties for non-compliance with ASIC’s trade reporting rules? Australian entities dealing in OTC derivatives are required to report under and comply with the ASIC Derivative Transaction Rules
The commencement of ASIC’s Product Intervention Order (Order) in respect of CFDs requires no action from you in respect of your OTC derivatives transaction reporting to ASIC.
DTCC recently announced the termination of their vendor relationship with Refinitiv, operators of Avox Limited. Underpinning the termination of DTCC’s vendor relationship with Refinitiv is the significant reduction in the use of AVIDs as the global community shifts towards the adoption of an Legal Entity Identifier (LEI) only policy.