+61 2 8960 7242

Trade Reporting – Are You Worried About Providing Sensitive Data?

Posted on October 5th, 2015 by Sophie Gerber in OTC Trade Reporting

Reserve-Bank-of-AustraliaAustralian issuers of OTC derivatives (with less than A$5 billion gross notional outstanding positions as of 30th June, 2014) will need to report for the first time from 12 October, 2015 under the ASIC Derivative Transaction Rules (Reporting) 2013 as amended (the Reporting Rules).

Data items 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 of 30th 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. Part S2.1 of Schedule 2 essentially requires data items for each reportable transaction as listed in the tables there. Similarly, Part S2.2 of Schedule 2 essentially requires data items for each reportable position as listed in the tables there.

There are a large number of data items listed/required – including the legal name of the non-reporting counterparty and the identifier of the non-reporting counterparty (which will be, in the case of an individual, a client code assigned by the reporting counterparty but not, for example, the address/telephone number of the individual) – which has led to some concerns about the sensitivity/granularity of the data reported with respect to a particular reporting entity firm (and its business/profit model).

Read more of this article on Finance Magnates or in PDF from our Media Page.

Feel free to contact us if you would like to discuss anything about trade reporting further.

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.