What is ASIC Derivative Transaction Reporting?

Like many other regulators, the Australian Securities and Investments Commission (ASIC) introduced the Derivative Transaction Reporting regime in 2013, aligning with G20 commitments made in response to the 2008 Global Financial Crisis. This regime requires entities to report over-the-counter (OTC) derivative transactions to authorised trade repositories (TRs) by the next business day (T+1).

ASIC's primary objective is to collect detailed data on OTC derivative transactions to monitor systemic risk, detect potential market abuse, and support informed policymaking. The reporting framework encompasses a broad range of derivatives, including interest rate, credit, equity, foreign exchange, and commodity derivatives and captures a significant portion of Australia’s financial markets.

ASIC works in close coordination with domestic and international regulators to ensure the effectiveness and alignment of its reporting framework with global standards. Since the regime was introduced, ASIC has issued multiple consultation papers and made several amendments to adapt to market changes, technological advancements, and emerging risks. For instance, on 21 September 2023, ASIC introduced new rules that incorporated the Unique Product Identifier (UPI) and updated other data elements, reflecting its ongoing efforts towards global harmonisation with other major regulatory bodies in the EU, North America, and Asia.

Given the constant development of the reporting requirements, entities operating within Australia’s financial markets face ongoing compliance challenges in adapting to these regulatory changes.