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 ASIC Derivative Transaction Rules (Reporting) 2022, (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.
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.