Government introduces derivatives reform Bill into Parliament

A new over-the-counter (OTC) derivatives regulatory framework for Australia is one step closer with the introduction into Parliament yesterday of the Corporations Legislation Amendment (Derivative Transactions) Bill 2012. Although the Bill is largely identical to the exposure draft of the Bill released in July, crucially, the definition of "derivative transaction" has changed.

A new definition of derivative transaction

Set out below is a mark-up showing the changes to the definition of derivative transaction:

derivative transaction means:

1. the entry into of an arrangement that is a derivative; or
2. the modification or termination of such an arrangement; or
3. the assignment, by a party to such an arrangement, of some or all of the party's rights and obligations under the arrangement; or