The Australian regulators and Government undoubtedly have their plates full given the G20 reform work promised before the year ends. Set out below is a timeline of key events in the lead up to Christmas relating to the reporting and clearing mandates as well as a summary of the state of play in respect of the other key pieces of G20 reform.
Next steps for the implementation of reporting and clearing requirements in Australia
Click here to view the table
The market continues to await the Government’s conclusions on two proposed refinements to the Australian trade reporting regime:
- that the exemption for end-users from having to report transactions be made permanent; and
- that the holders of an Australian financial services licence that does not contain a derivatives authorisation should not be required to report.
These amendments were proposed in February this year. However, the Government has not formally announced its decision on whether these amendments will be made. Whilst the Government did not produce a timeframe by which they expected to make a decision on these amendments, we would expect that a decision on the second point should fit within the timeframe that applies to the commencement of reporting by Phase 3 Reporting Entities.
What about execution platforms and risk mitigation requirements in Australia?
The Australian regulators have held off making recommendations with respect to the use of trading platforms and implementing risk mitigation requirements to date. In April, they indicated that they will keep a watching brief on developments overseas and the state of the Australian market in respect of these reforms.
The Regulators have indicated their next report on the state of play in the Australian OTC market will be published in 2015, at which time they will be able to utilise data from trade repositories (amongst other sources) to compile the report.