The Australian Securities and Investments Commission issued a consultation paper proposing to require the mandatory clearing of certain classes of over-the-counter interest rate swaps. Under ASIC’s proposal, only Australian and foreign clearing entities with AUD 100 Billion (approximately US $785 billion) or more in gross notional outstanding derivatives on a rolling basis (measured as of the last day of a quarter for two consecutive quarters) will be subject to mandatory clearing for relevant IRS trades with each other or foreign-internationally active dealers (e.g., swap dealers regulated by the Commodity Futures Trading Commission or Securities and Exchange Commission). Moreover, the mandatory clearing requirement will only apply to certain interest rate derivatives (fixed to floating swaps, basis swaps, overnight index swaps and forward rate agreements) denominated in AUD and G4 currencies (Euro British Pound, Japanese Yen and US dollar). The proposed mandatory clearing requirement is contemplated to commence in April 2016 with no back loading. Comments will be accepted through July 10, 2015.