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:
ASIC considers these changes will be useful for monitoring market misconduct and the prevention of market abuse in these products.
The ASIC instrument is accessible here.
|Lifecycle reporting||Snapshot 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’.