Government consults on new OTC derivatives framework for Australia

On 18 April 2012, the Australian Government took the next step towards reform of the over-the-counter (OTC) derivatives market in Australia by its release of a Treasury consultation paper proposing a legislative framework for implementing Australia's G-20 commitment to OTC derivatives reform.

It also released a report by the Council of Financial Regulators, provided to the Government in March. The Council's report recommends regulatory settings for the design of OTC derivatives reforms and details many of the policy considerations that underpin Treasury's proposed legislative framework. The report follows a June 2011 consultation paper and subsequent submissions and consultation with industry that focused on issues around central clearing of OTC derivatives.