Australian issuers of OTC derivatives (with less than A$5 billion gross notional outstanding positions as at June 30, 2014) will need to report for the first time from October 12, 2015 under the ASIC Derivative Transaction Rules (Reporting) 2013 (the Reporting Rules).
What Is Delegated Reporting?
The Reporting Rules allow a reporting entity to appoint one or more persons (each a delegate) to report on its behalf in accordance with Reporting Rules 2.2.1–2.2.5 and 2.2.8. This delegate may be a counterparty, a central counterparty, a trading platform, a service provider, a broker or any person.
A reporting entity that appoints a delegate is taken to have complied with their reporting obligations (under Reporting Rules 2.2.1–2.2.5 and 2.2.8) in relation to each reportable transaction and reportable position for which the delegate has been appointed to report. However, this is only available if:
(a) the terms of the delegate’s appointment and any related agreements or arrangements are documented in writing; and
(b) the reporting entity makes regular enquiries reasonably designed to determine whether the delegate is discharging its obligations under the terms of its appointment.
Further, a reporting entity that appoints another person to report on its behalf remains responsible for taking all reasonable steps to ensure the completeness, accuracy and currency of the information reported.