Upcoming Rules and Exemptions changes
ASIC is not currently considering any changes to Exemptions.
22 February 2021: In response to a number of requests from stakeholders, ASIC has decided to extend the closing date for feedback on Consultation Paper 334 Proposed changes to simplify the ASIC Derivative Transaction Rules (Reporting): First consultation (CP 334) by two weeks to 15 March 2021.
27 January 2021: ASIC wishes to draw stakeholders’ attention to ESMA’s 17 December 2020 final report on its derivative transaction reporting rule changes and the changes or final options adopted, particularly in relation to:
- at 4.2.2, for the Unique Transaction Identifier (UTI), ESMA adopts ‘Option 2’ and introduces a specific cross-jurisdictional waterfall including bilateral agreement
- at 4.2.4, for the Legal Entity Identifier (LEI), ESMA does not require that the LEI of a foreign Counterparty 2 be validated as a renewed LEI.
Given our in-principle intent to align as closely as practical with the rules of other jurisdictions, we will consider also adopting such changes in the next version of proposed ASIC rules for consultation. Stakeholders should take this into account in their feedback to Consultation Paper 334.
We have provided a Word version of the list of proposals and questions to assist stakeholders in compiling feedback on the CP 334 webpage.
27 November 2020: ASIC has released Consultation Paper 334 Proposed changes to simplify the ASIC Derivative Transaction Rules (Reporting): First consultation (CP 334).
ASIC has initiated a project to review and update the ASIC Derivative Transaction Rules (Reporting) 2013.
With proposals for rules changes made by the Commodity Futures Trading Commission (CFTC) and by the European Securities and Markets Authority (ESMA) in 2020, we think it is important to engage with industry as soon as practicable to give greater certainty to industry of our proposed alignment with international jurisdictions.
However, given that the final rules of international jurisdictions are still to be settled, we are planning for two rounds of consultation over the next year. The first consultation would be a set of proposals that we can firmly make, coupled with principles, frameworks or partial detail for the incomplete proposals. The second round of consultation would present the balance of the proposals and an opportunity to fine tune proposals from the first round.
Our indicative consultation timeline is:
Consultation Round 1
27 November 2020 to 15 March 2021
Consultation Round 2
May 2021 to June 2021
Our rules change proposals will be principally focused on implementing the harmonised international standards for transaction, product and party identifiers and transaction data elements:
- CPMI IOSCO Technical Guidance Harmonisation of the Unique Transaction Identifier (UTI)
- CPMI IOSCO Technical Guidance Harmonisation of the Unique Product Identifier (UPI)
- CPMI IOSCO Harmonisation of critical OTC derivatives data elements (other than UTI and UPI) (CDE), including the Legal Entity Identifier (LEI) and natural person identifier
Our project also includes a fit-for-purpose review of a number of other rules elements, including the:
- removal of outdated transitional implementation provisions
- consolidating reporting exemptions within the rules
- coverage scope of reporting entities
- coverage scope of reportable transactions
- coverage scope of life cycle reporting
- alternative reporting provisions
- delegated reporting provisions.