What information or data needs to be reported for the ASIC’s October 12th deadline? Read what reporting requirements are expected.

Under the ASIC Derivative Transaction Rules (Reporting) 2013 as amended (the Reporting Rules), Australian issuers of OTC derivatives (with less than A$5 billion gross notional outstanding positions as at 30 June 2014) will need to report for the first time from 12 October 2015 their reportable transactions, and from 18 April 2016 their reportable positions.

Key for most reporting entities will be determining the data that is required to be reported, and developing IT systems which collect this data and submit it in a form acceptable to their relevant trade repository.

What information or data needs to be reported?

Under Reporting Rule 2.2.1, a reporting entity must report specified information, including information about:

  • each of its reportable transactions; and
  • each of its reportable positions.

For Phase 3 entities (essentially those with less than A$5 billion gross notional outstanding positions as at 30 June 2014), reporting of information for each reportable transaction as set out in Part S2.1 of Schedule 2 to a relevant repository is required, and reporting of information for each reportable position as set out in Part S2.2 of Schedule 2 to a relevant repository is required.

Part S2.1 of Schedule 2 essentially requires data items for each reportable transaction as listed in the tables there.

The requirements in Part S2.1 of Schedule 2 are divided into two categories: common data and data specific to each asset class. Reporting entities are required to report on the following specific asset classes:

  • credit derivatives;
  • commodity derivatives (other than electricity derivatives);
  • interest rate derivatives;
  • foreign exchange derivatives; and
  • equity derivatives.

The lists contained in Schedule 2 of the Rules are exhaustive and broadly require the following information to be reported for all derivative transactions:

  • the economic terms of the transaction;
  • the product, transaction and entity identifiers;
  • information on whether the transaction is centrally cleared; and
  • valuation (mark-to-market, mark-to-model or other valuation) and collateral information.

There is an exemption for Phase 3 reporting entities until no later than the first Monday that is a business day in May 2016 in respect of items 30-32 (mark-to-market, mark-to-model, or other valuation), items 40-44 (collateral) and items 51-51 (barrier type and value) under ASIC Class Order 14/0633.

Similarly, Part S2.2 of Schedule 2 essentially requires data items for each reportable position as listed in the tables there.

Part S2.2 of the Rules outlines a common set of data fields and specific fields relating to each asset class. The information to be reported broadly covers:

  • the economic terms of the position;
  • the product and entity identifiers;
  • information on whether the position is centrally cleared; and
  • valuation (mark-to-market, mark-to-model or other valuation) and collateral information.

There are a large number of data items listed /required.

Reporting entities will also need to report any changes to this information which has previously been provided to the trade repository.

Read more on Finance Magnates, or from the PDF available on our Media Page.

Sophie Gerber

Sophie is the director of both Sophie Grace Legal Pty Ltd and Sophie Grace Pty Ltd. Sophie has worked with some of Australia’s largest financial services organisations in compliance, legal and operational roles. She has also worked with small businesses to provide tailored solutions with a strong understanding of business practicalities as well as obligations to regulators.