The Safe Harbour Benefits of Delegated Trade Reporting under the ASIC Rules

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What Is Delegated Reporting for OTC Derivatives?

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.

What are the Safe Harbour benefits?

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.

What are the conditions?

You can only benefit from the safe harbour provision if:

  1. the terms of the delegate’s appointment and any related agreements or arrangements are documented in writing
  2. you make regular enquiries reasonably designed to determine whether your delegate is discharging its obligations under the terms of its appointment; and
  3. you remain responsible for taking all reasonable steps to ensure the completeness, accuracy and currency of the information reported by your delegate.

Refer to ASIC Reporting Rules 2.2.1 – 2.2.5 and 2.2.8 for more information.

Can I delegate reporting to multiple delegates?

Yes, you can and you can also rely on the safe harbour provision if all the above conditions are satisfied with each delegate. Where you delegate to multiple delegates, you will need to ensure that each OTC derivative transaction you enter into is covered by one of the delegation agreements. Where particular transactions are not covered by a delegation agreement, the reporting entity will remain responsible for reporting these transactions in accordance with the Reporting Rules.

If you have any questions, please feel free to contact us.

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