ASIC’s Mandatory Lifecycle Reporting for CFDs, Margin FX and Equity Derivatives

Under the current derivative transaction rules, reporting entities have an option to adopt either snapshot or lifecycle reporting. Nevertheless, rule 2.2.8(3) of ASIC Derivative Transaction Rules (Reporting) 2013 allows ASIC to determine certain derivatives to be ‘Excluded Derivatives’ for using snapshot reporting.

The lifecycle reporting for the list of ‘Excluded Derivatives’ was made mandatory from 1 July 2019 onwards.

This reporting method aims to achieve the following:

  • enhance the transparency of information available to relevant authorities and the public;
  • promote financial stability; or
  • support the detection and prevention of market abuse.

ASIC considers these changes will be useful for monitoring market misconduct and the prevention of market abuse in these products.

What are the 'Excluded Derivatives'?
  • CFDs;
  • Margin FX; and
  • Equity derivatives.

Access the ASIC instrument.

What's the difference between snapshot and lifecycle reporting?

 

Lifecycle reportingSnapshot reporting
You are required to report the entry into, exit of, as well as any modification of an OTC derivative which occurred during the preceding business day.

This is often referred to as ‘intraday reporting’
You are required to report the positions which are open at the end of the business day.

This is often referred to as ‘end-of-day reporting’.