A few moments ago, the Reserve Bank of Australia released a discussion paper on the central clearing of OTC derivatives in Australia.

As noted in the media release:  "The paper discusses the evolving global landscape for OTC derivatives and central clearing, the Australian market for OTC derivatives, and a range of considerations that need to be weighed if central clearing in the domestic market is to be established. Ahead of making recommendations to the Government on this matter, the Council is seeking feedback on the views and propositions set out in the paper. In addition to inviting written submissions from interested parties, Council agencies will be hosting a number of roundtable discussions over the period ahead, and will arrange other meetings as appropriate."

Interestingly, the paper does contemplate the possibility of establishing an Australian central counterparty for the clearing of AUD interest rate derivatives.

Below are links to the media release and the paper:

http://www.rba.gov.au/media-releases/2011/mr-11-11.html

http://www.rba.gov.au/publications/consultations/201106-otc-derivatives/pdf/201106-otc-derivatives.pdf