Key Points:
Regulators are considering whether there should be
central clearing for Australian OTC derivatives.
Following the G20 summit in April 2009, the G20 group of
countries committed to several measures to strengthen the OTC
derivatives markets, including the establishment of central
clearing counterparties (CCP) for standardised OTC
derivatives transactions. Many offshore jurisdictions have since
undergone substantial reforms in this area, with the aim of having
all standardised OTC derivatives cleared through CCPs by the end of
2012.
Now Australia (also a member of G20) is looking to do same, with
the release of a discussion paper in June 2011 by the Council of
Financial Regulators (Council), which is the
co-ordinating body for Australia's main financial regulatory
agencies (being the Australian Prudential Regulation Authority, the
Australian Securities and Investments Commission, the Reserve Bank
of Australia and the Treasury).
