Australian Trade Reporting Requirements (ASIC)

AustraliaAustralian entities dealing in OTC Derivatives are required to report transactions to the Australian Securities and Investments Commission (ASIC).

Under ASIC’s Derivative Transaction Rules (Reporting) 2013, Australian issuers of OTC Derivatives will need to report their reportable transactions. From 6 June 2016, Australian issuers of OTC Derivatives will need to report their reportable positions.

ASIC’s Derivative Transaction Rules provide a framework for the regulation of OTC derivatives reporting, clearing and trade execution.

ASIC Derivative Transaction Rules (Reporting) 2013

The G20 meetings concluded in agreement by its members to implement reforms to work towards central reporting and clearing of OTC derivatives. ASIC released their Derivatives Transaction Rules (Reporting) in 2013.

Specific requirements

Essentially the requirements for an Australian Financial Services Licence (AFSL) Derivatives broker are to carry out the following on a daily basis:

  •  – Report all trades to an ADTR,
  •  – Report end of day open positions to an ADTR, and
  •  – Submit any modifications;

to a licensed Australian Derivatives Trade Repository (ADTR).

What needs to be reported?

Under ASIC’s Reporting Rules, a reporting entity must report the following:

  1. each of its reportable transactions; and
  2. each of its reportable positions.

    Reportable Transactions

Part S2.1 Schedule 2 of ASIC Reporting Rules requires data items for each reportable transaction.

The requirements are divided into two categories:

  1. common data; and
  2. data specific to each asset class.

Reporting entities are required to report on the following specific asset classes:

  •  – 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 derivative transactions:

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

    Snapshot Reporting

Most entities will report transactions through the Snapshot Reporting provisions in ASIC’s Reporting Rules.

A reportable transaction is an OTC Derivative that “takes place on a day (Relevant Day)” may be reported by “reporting Derivative Transaction Information in relation to the Relevant OTC Derivative on its terms as of the Relevant Day.”

A single transaction may be reported that reflects intraday modifications of an OTC Derivative. If an OTC Derivative transacted earlier in a day is no longer in place at the end of a day then that OTC Derivative may not be reportable.

  Reportable Positions

Part S2.2 of Schedule 2 of ASIC’s reporting rules requires data items for each reportable position.

ASICs Reporting Rules outline a common set of data fields and specific fields relating to each asset class. 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; and
  •  – valuation (mark-to-market, mark-to-model or other valuation) and collateral information.

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 Derivative on Shekel FX and rates.

For Further information on your Shekel reporting obligations, visit our Israeli Shekel page.

Legal Entity Identifier

Easy entity that is required to report under ASIC’s Reporting Rules is required to have a Legal Entity Identifier (LEI).

LEIs are available for:

  •  – counterparties;
  •  – beneficiaries (if different to the counterparty);
  •  – the person making the report (if not the reporting counterparty);
  •  – the broker that executed the transaction – if any;
  •  – the clearing member that cleared the transaction – if any.

An LEI is a 20 character code that uniquely identifies entities who participate on the financial markets.

Further information

See the following pages for more detailed information about specific aspects of transaction reporting in Australia:

The Safe Harbour Benefits of Delegated Trade Reporting

Are You Worried About Providing Sensitive Data?

What Are The Penalties For Not Reporting Trades to ASIC?

Delegated Reporting – How can we help you?

TRAction provides clients with delegated reporting solutions in accordance with the reporting requirements outlined above.

ASIC’s Reporting Rules allow a reporting entity to appoint one or more persons (each a delegate) to report on its behalf. A reporting entity that appoints a delegate is taken to have complied with their reporting obligations in relation to each reportable transaction and reportable position for which the delegate has been appointed to report.

Find out more about how TRAction Fintech can assist you here.  If you would like to get in touch, we would be happy to talk to you about your trade reporting obligations.  Feel free to contact us for an obligation-free consultation with one of our experienced staff on  +61 2 8960 7248.

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