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Australian entities dealing in OTC derivatives are required to report transactions to an Australian Derivatives Trade Repository (ADTR) licensed by the Australian Securities and Investments Commission (ASIC). Under ASIC’s Derivative Transaction Rules (Reporting) 2013 (ASIC’s Rules), Australian issuers of OTC derivatives need to report their reportable transactions. ASIC’s Rules and Regulatory Guide 251 provide a framework for the regulation of OTC derivatives reporting.

What is the reporting obligation and who is required to report?

Reporting entities (often holders of an Australian Financial Services Licence (AFSL), but others are captured including overseas firms) are required to do the following in respect of OTC derivatives:

  • report all trades;
  • report end of day open positions; and
  • submit any modifications to an ADTR.

What to report and to whom?

ASIC’s Rules outline a common set of data fields and specific fields relation to specific asset classes including:

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

Broadly, the following information is to be reported for all reportable positions:

  • the economic terms of the position;
  • the product and entity identifiers;
  • information on whether the position is centrally cleared;
  • valuation (mark-to-market, mark-to-model or other valuation); and
  • collateral information

to a licensed ADTR, on a daily basis. At present, DTCC is the only licensed trade repository (TR) in Australia.

Extra-territorial obligations

MiFIR Reporting in Europe (EU) and the United Kingdom (UK)

Australian firms are brought into the ambit of MiFIR where a branch or subsidiary is incorporated in the EU and/or UK, and financial instruments are traded on an EU/UK trading venue or where the firm interacts in certain ways with EU/UK entities. For more information, visit our MiFIR page.

Shekel Reporting

Australian brokers that deal in the Israeli Shekel derivative have reporting obligations to the Bank of Israel. All non-Israeli firms who hold a position above the threshold (USD15m in aggregate gross notional) are required to report all OTC derivatives on Shekel FX and rates. For further information on your Shekel reporting obligations, visit our Israeli Shekel page.

Further Information

On 30 November 2018, ASIC made an Excluded Derivatives determination requiring transactions in contracts for difference (CFDs), margin FX and equity derivatives to be reported to derivative trade repositories on a ‘lifecycle’ method. Read more.

Australia’s reporting regime requires both parties to a derivative transaction to report to an Australian Derivative Trade Repository (ADTR). However, there is relief from this principle allowing single-sided reporting, i.e. where only one party is required to report.

Read more for further details on single-sided reporting.

A reporting entity is allowed to appoint one or more persons (each a delegate) to report OTC derivatives on its behalf.  This delegate may be a counterparty, a central counterparty, a trading platform, a service provider, a broker or any other third party. You are taken to have complied with your reporting obligations in relation to each reportable transaction and reportable position for which your delegate has been appointed to report, subject to certain conditions. Read more.

Are you aware of the penalties for non-compliance with ASIC’s trade reporting rules? Read more.

TRAction has identified 4 common mistakes in ASIC trade reporting data. Ensuring the completeness and accuracy of your ASIC trade reporting is important and hence you should take time to review your reporting process against the list below:

  1. Only OTC derivatives trades need to be reported
  2. Only trades related to you (Australian entity) matter
  3. Reporting all trading platforms and systems
  4. Full visibility of your reportable trade accounts (only applicable to clients using MT4 API, MT4 & MT5 linked servers)

For TRAction’s guidance on how to prevent or rectify the above errors read more.

It’s a fair concern and it’s a question we’ve been asked by a few brokers, so we’ve taken the time to answer the questions fully and share with the industry as a whole. In the case that the client is an individual, the ASIC Reporting Rules require a unique ID and the client’s legal name. No phone numbers, emails or address are required in the reports. Read more.

Under ASIC’s Regulatory Guide (RG) 251, firms reporting OTC derivatives are required to make regular enquiries with their reporting delegate to ensure that the delegate continues to meet its obligations to report your trades (ASIC Reporting Rule 2.2.7).

As a reporting entity, you also need to take all reasonable steps to ensure the completeness, accuracy and currency of the information reported. (ASIC Reporting Rule 2.2.6). Read more.