Implementation of a framework for Australia's G20 over-the-counter derivatives commitments

This consultation process has now been completed. Submissions available
Date
-
Consultation Type
Consultation Paper

Key Documents

The Government has released a consultation paper seeking stakeholder views on the detailed design of a framework to implement Australia’s G20 commitments in relation to over-the-counter (OTC) derivatives.

Following the global financial crisis, the G20 endorsed a global transition of derivatives products which are currently traded through bilateral arrangements between two parties, or 'over-the-counter' (OTC), towards recognised exchanges or trading platforms where appropriate, in order to boost market transparency. The G20 also agreed that certain trading activity should be cleared through a central counterparty to reduce systemic risk and reported to trade repositories in order to enhance market information.

The Government and the Council of Financial Regulators (the Council) have engaged extensively with domestic market participants since 2009 to identify the most appropriate policy settings for Australia in meeting our G20 commitments, including the release of a discussion paper in June 2011. The final report of the Council outlines proposed next steps towards the implementation of Australia's G20 commitments.

The Council recommends the development of a legislative framework which allows regulators to take a dynamic approach as the Australian market evolves, and allows for mandated outcomes where required to ensure the adoption of acceptable industry practices within a timeframe that is consistent with the international implementation of the G20 OTC commitments. The Council has also recommended that industry-led solutions, driven by appropriate regulatory incentives, should initially be the preferred route to increasing the use of centralised infrastructure in Australia.

The Government's consultation paper canvasses options for the implementation of the legislative framework to meet Australia's G20 commitments on OTC derivatives. Treasury will engage with stakeholders for a two month period to seek views on the contents of the regulations to be made under the legislative framework. Interested stakeholders will also have an opportunity to comment on draft legislation before introduction.

In addition to seeking submissions, Treasury, with other Council agencies, will be conducting stakeholder consultation meetings on this issue. Should you wish to arrange a meeting in relation to the consultation contact Treasury by 4 May 2012.

Submissions

37 submissions were received for this consultation.

ASX Group - pdf 682.78 KB
CME Group - pdf 81.64 KB
CME Group - rtf 1.77 MB
Deutsche Bank - pdf 502.89 KB
HSBC - pdf 2.33 MB
IG Markets - pdf 4.73 MB
King and Wood Mallesons - pdf 129.54 KB
LCH Clearnet - rtf 4.84 MB
LCH Clearnet - pdf 434.38 KB
Major Australian Banks - pdf 234.41 KB
Major Australian Banks - rtf 195.3 KB
Markit - pdf 206.88 KB
MarkitSERV - pdf 280.57 KB
Norton Rose - pdf 4 MB
Rate Validation Services - rtf 471.96 KB
Rate Validation Services - pdf 586.04 KB
TriOptima - pdf 72.19 KB
TriOptima - rtf 2.84 MB
TRUenergy - pdf 333.74 KB
Vanguard - pdf 6.07 MB
Yieldbroker - pdf 356.47 KB
Yieldbroker - rtf 451.24 KB