• Implementation of global Principles for Financial Market Infrastructures: On 17 December 2015, the CPMI and IOSCO published a report “Implementation monitoring of PFMI: Level 2 assessment report for Australia”. This report looks at the extent to which the country’s legal, regulatory and oversight frameworks for systemically important payment systems, CSDs, securities settlement systems, CCPs and trade repositories in Australia are in line with the PFMIs (see under “Global Regulators”, above). The organisations found that Australia has generally consistently adopted the PFMIs across the various financial market infrastructure types.
  • Mandatory clearing of interest rate swaps: On 14 December 2015, the Australian Securities and Investments Commission (ASIC) published rules implementing Australia’s mandatory central clearing regime for OTC G4 (USD, EUR, GBP, JPY) and AUD interest rate derivatives between dealers. The clearing obligations will start from April 2016.
  • Australian Government proposes exposure draft legislation: On 21 December 2015, the Australian Government released exposure draft legislation to amend the Payment Systems and Netting Act 1998 and certain regulations in order to enable Australian entities to enforce rights in respect of margin provided as security in connection with certain derivatives, clarify the operation of close-out rights and protect the operation of financial market infrastructure. The Government also published a policy paper on “enhancing retail consumer protection for client monies” and are considering proposed reform with regards to wholesale clients. The submission period will close on 29 January 2016, with the Government seeking to introduce legislation early in 2016.