Australia (ASIC) Derivative Trade Reporting

Overview of ASIC Reporting

The regulation of derivatives in Australia is overseen by the Australian Securities and Investments Commission (ASIC)

Corporations Act 2001, Part 7.5A (mandates derivatives transaction reporting under the G20 framework).
ASIC Derivative Transaction Rules (latest update in 2024).
ASIC Regulatory Guides, such as RG 251, providing compliance guidance.

Authorized Deposit-taking Institutions (ADIs) (banks, credit unions, building societies).
Australian Financial Services (AFS) license holders – Businesses licensed to provide financial services in Australia.
Clearing and Settlement (CS) facility licensees – Entities that manage the clearing and settlement of transactions.
Managed investment schemes and corporate collective investment vehicles (CCIVs) (under specific conditions) – Investment funds.
Entities with total gross notional OTC derivative positions exceeding AUD $5 billion.
Foreign companies conducting derivative business in Australia.

If you’re unsure if your entity is subject to these requirements, contact us for a consultation.

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Understanding OTC Derivatives Subject to Reporting under ASIC

Over-the-Counter (OTC) derivatives are financial contracts privately negotiated and traded directly between two parties, rather than on a formal public exchange (like the ASX). Their value is derived from an underlying asset, index, or rate, such as interest rates, currency exchange rates, commodities, stocks, or credit events.

The key characteristic of OTC derivatives is their flexibility – terms can be customised to meet the specific needs of the counterparties. However, this private nature historically led to less market transparency. To address this and monitor potential systemic risks, ASIC mandates the reporting of transactions in certain OTC derivative classes.

Under the ASIC Derivative Transaction Rules (Reporting), the OTC derivatives generally subject to these reporting requirements include:

Interest rate derivatives
Foreign exchange (FX) derivatives
Credit derivatives
Equity derivatives
Commodity derivatives.

Important Exemption: Note that electricity derivatives are specifically exempt from these ASIC reporting obligations.

Transactions and Participants

All OTC derivative transactions from the prescribed asset classes must be reported if at least one counterparty is an Australian reporting entity.

Lifecycle reporting applies to all asset classes and covers transaction- and position-levels. Typically, both parties are required to report (dual-sided reporting), but delegated reporting is permitted. Important: even when outsourcing reporting duties, the original counterparty remains responsible for data completeness.

Small buy-side entities with low trading volumes are granted relief under the small-scale buy-side exemption, which reduces certain reporting obligations.

Let us help you understand if the dual-sided or delegated reporting model is right for your business

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Reporting Deadlines

The reporting deadline is set to T+2 business days. This means that reports must be submitted no later than the second business day after a transaction is executed or modified.

The T+4 reporting deadline applies to package transactions (excluding FX swaps).

Reporting Format and Submission Method

Reports must be submitted to licensed Derivative Trade Repositories (DTRs), such as: DTCC Data Repository (Singapore) Pte Ltd (DDRS) and KOR Reporting Inc. (KOR). Reports for all submissions must follow ISO 20022 messaging standards for consistency and global alignment.

Identifiers

All OTC derivative transactions from the press are granted relief under the small-scale buy-side exemption, which reduces certain reporting obligations.

UTI: each transaction must have a Unique Transaction Identifier (UTI) in compliance with ISO 23897.
LEI: counterparties are identified using a Legal Entity Identifier (LEI).
UPI: a Unique Product Identifier (UPI) must be reported for derivative classification.

Foreign participant rules to change in October 2025: A new “nexus test” will replace the current “entered-into in Australia” criterion for determining reporting obligations. The alternative reporting regime for foreign dealers will be discontinued, requiring them to report directly to an Australian trade repository. A transition period until October 2025 allows foreign participants to adapt to direct reporting.

Contact us to understand how these changes will affect your specific reporting obligations.

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Key Challenges in ASIC Reporting

Data Quality & Validation Risks – Ensuring accurate, complete, and standardised reports. Resolve DTR provides automated validation and reconciliation tools to address this.
Rising Compliance Costs – Increased burden due to the removal of the safe harbor for delegated reporting. Resolve DTR offers efficient managed operations to help control these costs.
Global Reporting Complexity – Inconsistent regulatory requirements across jurisdictions. Resolve DTR has expertise across multiple jurisdictions to ensure consistent reporting.
Frequent Regulatory Changes – Keeping up with evolving ASIC rules and compliance deadlines. Resolve DTR provides proactive regulatory updates and guidance.