ASIC's ‘Nexus Derivatives' – What are they?

From 20 October 2025 onwards, OTC derivatives with an Australian operational mark may be in-scope under the ASIC Rules and therefore reportable. ASIC and other global regulators (such as FCA, Cysec, ESMA) have made no secret of their desire to protect their local retail clients from investment products that they consider inappropriate for them. They are keen to get a better understanding of the scale of operations and take-up by their residents of these products through offshore providers following significantly curtailed operations by their local providers.

Despite the broad nature of the descriptions and consultation by ASIC, the definition of 'nexus derivative' is significantly curtailed by other provisions and definitions in the ASIC Rules.