Australian Regulator Issues New OTC Derivatives Clearing Rules

On December 14, 2015, the Australian Securities and Investments Commission (ASIC) made the ASIC Derivative Transaction Rules (Clearing) 2015 (Clearing Rules).

The Clearing Rules implement Australia’s mandatory central clearing regime for over-the-counter (OTC) derivatives, and contain a regime for substituted compliance where clearing has been done under clearing requirements in a foreign jurisdiction.

The clearing requirement in Australia will commence on April 4, 2016.

Failure to have a relevant transaction centrally cleared could result in a civil penalty of A$180,000 (U.S.$129,047).

The new rules will apply to transactions in OTC interest rate derivatives denominated in Australian dollars, U.S. dollars, euros, ...