ASIC Derivative Transaction Rules (Clearing) 2026

Explanatory Statement

This is the Explanatory Statement for ASIC Derivative Transaction Rules (Clearing) 2026 (the Rules, or the instrument).

The Explanatory Statement is approved by the Australian Securities and Investments Commission (ASIC).

Summary

This instrument remakes the ASIC Derivative Transaction Rules (Clearing) 2015 (the 2015 Rules).
This instrument continues the requirements that first commenced in 2015 for the operation of Australia’s over-the-counter (OTC) derivatives central clearing regime (clearing regime) under Part 7.5A of the Corporations Act 2001 (Corporations Act). However, this instrument extends exemptive relief to clearing derivative transactions resulting from post-trade risk reduction (PTRR) exercises, replaces outdated transitional provisions and ensures that the requirements are fit for purpose and clear as to the roles and responsibilities of certain Australian and foreign financial entities (Clearing Entities).
In 2009, following the Global Financial Crisis (GFC), the Leaders of the Group of Twenty (G20) nations (including Australia) committed to reforming OTC derivatives markets. With the Minister’s consent, ASIC made the 2015 Rules to implement the clearing regime, which fulfilled a key component of Australia’s G20 OTC derivatives reforms commitments.
Broadly, the 2015 Rules specified clearing requirements that apply to Clearing Entities. The 2015 Rules, among other matters, required Clearing Entities to centrally clear transactions in certain OTC interest rate derivative products with certain specifications in relation to the currency of denomination, floating rate index and termination date range.
In October 2025, ASIC consulted on remaking the 2015 Rules to ensure they remain effective and efficient. ASIC’s consultation included proposals to continue the requirements imposed on Clearing Entities under the 2015 Rules except for minor administrative updates to modernise the 2015 Rules and one minor policy update to broaden an exception for clearing derivatives resulting from multilateral portfolio compression activities to all PTRR exercises.
This instrument implements ASIC’s consultation conclusions as the Rules.

Purpose of the instrument

The purpose of this instrument is to continue the requirements of the 2015 Rules beyond the initial sunset date of 1 April 2026. The Rules largely remake the 2015 Rules with minor amendments to:
1. update dates to ensure the Rules are current;
2. include a simplified outline that summarises what the instrument does;
3. update the definitions for consistency and to remove duplication with the Corporations Act;
4. remove outdated transitional provisions and related references for clarity and consistency;
5. include new transitional provisions to address the remake of the 2015 Rules; and
6. broaden the exception in Rule 2.1.5 to apply to all clearing transactions resulting from PTRR exercises, including multilateral portfolio compressions, to reduce regulatory burden for certain activities designed to reduce operational or counterparty risk

(together, the minor amendments).

In response to the GFC, the leaders of the G20 nations agreed to a range of reforms to OTC derivatives markets at the 2009 Pittsburgh Summit. The agreed reforms included:
1. mandatory reporting of OTC derivative transactions to trade repositories;
2. all standardised OTC derivative transactions to be made on exchanges or electronic trading platforms, where appropriate, and cleared through central counterparties; and
3. non-centrally cleared transactions to be subject to higher capital requirements

(together the OTC derivatives reforms).

The 2015 Rules were designed to:
1. implement the Australian Government’s G20 commitment in relation to mandatory central clearing;
2. achieve the stated objectives of the OTC derivative reforms, by enhancing the transparency of OTC derivative markets, both to regulators and the public, leading to an increased capacity for the oversight and monitoring of systemic risk and the prevention and detection of market abuse; and
3. ensure that the Australian clearing regime is consistent with the regimes in other jurisdictions, including in the European Union (EU), the United States (US) and Singapore for mutual recognition or substituted compliance purposes.
In December 2015, with the Minister’s consent, ASIC made the 2015 Rules which facilitated the commencement of Australia’s clearing regime under Pt 7.5A of the Corporations Act and fulfilled a key component of Australia’s G20 OTC derivatives reforms commitment.
ASIC made the 2015 Rules under subsection 901A of the Corporations Act, making provisions dealing with matters prescribed in subsections 901A(2) and (3), such as:
1. specifying the classes of derivative transactions in relation to which particular requirements apply;
2. specifying the licensed clearing and settlement (CS) facility or prescribed facility (or the class of licensed CS facility or prescribed facility) through which derivative transactions in a particular class must be cleared;
3. specifying a period within which transactions must be cleared;
4. specifying the persons who are required to comply with requirements imposed by the rules;
5. the manner and form in which persons must comply with requirements imposed by the rules;
6. the circumstances in which persons are, or may be, relieved from complying with requirements in the rules that would otherwise apply to them;
7. the keeping of records, or the provision of records or other information, relating to compliance with (or determining whether there has been compliance with) the rules;
8. any other matters that the provisions of this Act provide may be dealt with in the derivative transaction rules (paragraphs 901A(3)(a) and 901A(3)(d)–(i)).
On 16 March 2026, with the Minister’s consent, ASIC made the Rules which largely remade the 2015 Rules with minor amendments.
The Rules maintain the operation of the clearing regime which serves to reduce counterparty risk associated with certain OTC derivative transactions, thereby reducing systemic risk in the financial industry to promote financial stability. Further, the Rules facilitate market participants and market infrastructures to maintain, or obtain, equivalence and substituted compliance determinations from overseas regulators—which reduces the compliance burden associated with duplicative or conflicting regulation.

Consultation

Except in certain emergency situations (see section 901L), under section 901J of the Corporations Act, ASIC must not make a derivative transaction rule unless ASIC has consulted:
1. the public about the proposed rule; and
2. Australian Prudential Regulation Authority (APRA), the Reserve Bank of Australia (RBA) and any other person or body as required by regulations made for the purpose of subparagraph 901J(1)(b)(iii) of the Corporations Act.
As at the date of making the Rules there are no regulations of the Corporations Regulations 2001 (Corporations Regulations) made under subparagraph 901J(1)(b)(iii).
On 28 October 2025, ASIC published Simple Consultation 33 Proposed remake of the ASIC Derivative Transaction Rules (Clearing) 2015 (CS 33).[1] CS 33 proposed to remake the 2015 Rules with minor amendments to modernise the 2015 Rules, including one policy update to broaden exemptive relief to clearing derivatives resulting from PTRR exercises. Submissions in response to CS 33 closed on 28 November 2025.
To ensure that there was broad industry awareness, ASIC promoted the publication of CS 33 by directly emailing industry associations, and licensed and prescribed CS facilities. ASIC also published a News Item on our website.[2]
Broadly, the feedback we received was supportive of our proposals. The International Swaps and Derivatives Association (ISDA) and OSTRRA Group Ltd. (OSTTRA), a PTRR service provider, provided substantively the same feedback in each of their non-confidential responses. ISDA and OSTRRA proposed some amendments limited to the drafting of Rule 2.1.5 which has largely been adopted in the Rules. We also received one confidential submission from another service provider in support of the proposed amendments to Rule 2.1.5 to broaden the exception to PTRR exercises.
ASIC consulted with APRA and the RBA in accordance with the requirements of section 901J of the Corporations Act. APRA and the RBA were generally supportive of our proposals set out in CS 33.
For historical context and completeness, on 28 May 2015, ASIC released Consultation Paper 231 Mandatory central clearing of OTC interest rate derivative transactions (CP 231),[3] which proposed a draft version of the 2015 Rules. ASIC received 11 written submissions (including three confidential submissions) and conducted meetings with industry associations and stakeholders. Submissions were broadly supportive of the proposals with limited updates adopted in response to substantive issues raised by stakeholders.

Operation of the instrument

Chapter 1: Introduction

Part 1.1 Preliminary

Rule 1.1.1 provides that the name of the instrument is the ASIC Derivative Transaction Rules (Clearing) 2026.
Rule 1.1.2 provides that the instrument commences on the later of the day after it is registered on the Federal Register of Legislation and 1 April 2026.
Rule 1.1.3 provides that the instrument is made under section 901A of the Corporations Act.
Rule 1.1.4 provides that the maximum pecuniary penalty payable for a contravention of a provision of the Rules is an amount determined by the Court under section 1317G of the Corporations Act.
Rule 1.1.5 provides a simplified outline of the Rules. Its purpose is to assist readers in understanding the substantive provisions. However, the simplified outline is not intended to be comprehensive, and readers should rely on the substantive provisions when considering the operation of the Rules.

Part 1.2 Interpretation

Rule 1.2.1 provides definitions for terms used in the Rules and notes that words and expressions defined in the Corporations Act have the same meaning in the Rules unless otherwise defined or specified in the Rules or the contrary intention appears.
Rule 1.2.2 provides that in the Rules, unless the contrary intention appears, a reference to an entity ‘acting in a capacity’ or ‘acting in a particular capacity’ where the capacity is not specified is a reference to the entity acting in its Personal Capacity or in a Representative Capacity.
Rule 1.2.3 provides a definition of ‘Clearing Derivative’ for the purposes of the Rules. Under the Rules, Clearing Entities are required to ensure their Clearing Transactions are Cleared Through a Clearing Facility (see Rule 2.1.1). ‘Clearing Transactions’ are defined by reference to the entry into a Clearing Derivative (among other things) (see Rule 1.2.5).
Subrule 1.2.3(1) provides that, subject to subrule 1.2.3(6), a Derivative is a Clearing Derivative if the Derivative:

is an OTC Derivative, which is defined under Rule 1.2.4 of the ASIC Derivative Transaction Rules (Reporting) 2024;
is in a Determined Clearing Class, which means a class of Derivatives that the Minister has determined under subsection 901B(2) of the Corporations Act as a class of Derivatives in relation to which Clearing Requirements may be imposed; and
is a Basis Swap, Fixed-to-Floating Swap, Forward Rate Agreement or Overnight Index Swap; and
meets the IRD Class Specifications, which has the meaning given by subrules 1.2.3(2) to (4).

Subrules 1.2.3(2), (3) and (4) set out when a Derivative that is a Basis Swap, Fixed-to-Floating Swap, Forward Rate Agreement or Overnight Index Swap ‘meets the IRD Class Specifications’. Under those subrules, a Derivative that is a Basis Swap, Fixed-to-Floating Swap, Forward Rate Agreement or Overnight Index Swap ‘meets the IRD Class Specifications’ if a row in the following tables (as applicable) contains:

the currency (Currency) in which the notional principal amount and payments under the Derivative are denominated; and
the benchmark, index or rate (Floating Rate Index) on which each floating rate for the Derivative is based; and
a period of time (Termination Date Range) which includes the period from entry into the Derivative until the termination date for the Derivative.

IRD Class Specifications for Basis Swaps and Fixed-to-Floating Swaps
Item	Currency	Floating Rate Index	Termination Date Range
1	euro	Euro Interbank Offered Rate (EURIBOR)	28 days to 50 years
2	Australian dollar	Australian Bank Bill Swap Rate (BBSW)	28 days to 30 years

IRD Class Specifications for Forward Rate Agreements
Item	Currency	Floating Rate Index	Termination Date Range
1	euro	Euro Interbank Offered Rate (EURIBOR)	3 days to 3 years

IRD Class Specifications for Overnight Index Swaps
Item	Currency	Floating Rate Index	Termination Date Range
1	US dollar	Effective Federal Funds Rate (FedFunds)	7 days to 2 years
2	euro	Euro Short Term Rate (€STR)	7 days to 3 years
3	British pound	Sterling Overnight Interbank Average Rate (SONIA)	7 days to 50 years
4	Australian dollar	RBA Interbank Overnight Cash Rate (IBOC)	7 days to 2 years
5	Japanese yen	Tokyo Overnight Average Rate (TONA)	7 days to 30 years
6	US dollar	Secured Overnight Financing Rate (SOFR)	7 days to 50 years

Subrule 1.2.3(5) provides that a reference to a type of Floating Rate Index in a table in Rule 1.2.3 includes a reference to any successor to that Floating Rate Index.
Subrule 1.2.3(6) provides that a Derivative is not a Clearing Derivative if under the Derivative:

Optionality: either party is granted an option which, if exercised, would or might affect the amount, timing or form of the consideration that would otherwise be provided under the Derivative by a party to the Derivative. It is noted that a Derivative that gave a party the ability to change the notional principal amount at its election would be an example of optionality. This type of optionality would also fall within paragraph 1.2.3(6)(a); or
Multi-currency: the notional principal amount and payments under the Derivative are not all denominated in the same currency. It is noted that such a Derivative would also not be a Clearing Derivative because it would not meet the IRD Class Specifications: see paragraphs 1.2.3(2)(a), (3)(a) and (4)(a); or
Conditional notional principal amount: the notional principal amount will or may change upon the occurrence of a specified future event where, at the time of entry into the Derivative, at least one of the following is uncertain: (i) when the future event will occur; (ii) whether the future event will occur.

Rule 1.2.4 Meaning of Clearing Entity

Rule 1.2.4 provides a definition of ‘Clearing Entity’ for the purposes of the Rules. Under the Rules, Clearing Entities are required to ensure their Clearing Transactions are Cleared Through a Clearing Facility (see Rule 2.1.1).
Subrule 1.2.4(1) provides that an entity is a Clearing Entity in relation to a Derivative Transaction if it is an Australian Clearing Entity or a Foreign Clearing Entity in relation to the Derivative Transaction.
Subrules 1.2.4(2) and (3) provide when an entity is an Australian Clearing Entity in relation to a Derivative Transaction.
Subrule 1.2.4(2) provides that an entity is an Australian Clearing Entity in relation to a Derivative Transaction to which it is party in its Personal Capacity if the entity is:

an Australian ADI or a financial services licensee that is incorporated or formed in Australia and meets the Clearing Threshold in its Personal Capacity; or
an Opt-In Australian Clearing Entity in its Personal Capacity.

Subrule 1.2.4(3) provides that an entity is an Australian Clearing Entity in relation to a Derivative Transaction to which it is a party in a Representative Capacity if:
1. the scheme or trust to which the Representative Capacity relates is incorporated or formed in Australia; and
2. the entity is:
  1. a Financial Entity that is incorporated or formed in Australia or is a foreign company; and meets the Clearing Threshold in that Representative Capacity; or
  2. an Opt-In Australian Clearing Entity in that Representative Capacity.
Subrules 1.2.4(4) and (5) provide when an entity is a Foreign Clearing Entity in relation to a Derivative Transaction.
Subrule 1.2.4(4) provides that an entity is a Foreign Clearing Entity in relation to a Derivative Transaction to which it is party in its Personal Capacity if the entity is:
1. a Financial Entity that is a foreign company and meets the Clearing Threshold in its Personal Capacity; or
2. an Opt-In Foreign Clearing Entity in its Personal Capacity.
Subrule 1.2.4(5) provides that an entity is a Foreign Clearing Entity in relation to a Derivative Transaction to which it is a party in a Representative Capacity if:
1. the scheme or trust to which the Representative Capacity relates is incorporated or formed outside Australia; and
2. the entity is either:
  1. a Financial Entity that is incorporated or formed in Australia or is a foreign company, and meets the Clearing Threshold in that Representative Capacity; or
  2. an Opt-In Foreign Clearing Entity in that Representative Capacity.
Subregulations 7.5A.61(2) and 7.5A.62(2) of the Corporations Regulations provide that an entity is an ‘Australian clearing entity’ or a ‘foreign clearing entity’ in relation to a derivative transaction to which it is a party in a representative capacity in the circumstances set out in derivative transaction rules.
Subrule 1.2.4(6) provides that for the purposes of subregulations 7.5A.61(2) and 7.5A.62(2) of the Corporations Regulations, an entity that is:
1. an Australian Clearing Entity in relation to a Derivative Transaction to which it is party in a Representative Capacity is an ‘Australian clearing entity’ (as defined in subregulation 7.5A.61(2)) in relation to the Derivative Transaction; and
2. a Foreign Clearing Entity in relation to a Derivative Transaction to which it is party in a Representative Capacity is a ‘foreign clearing entity’ (as defined in subregulation 7.5A.62(2)) in relation to the Derivative Transaction.
The note to subrule 1.2.4(6) states that subregulations 7.5A.61(2) and 7.5A.62(2) of the Corporations Regulations provide that, for the purposes of the Corporations Regulations, an entity is an Australian clearing entity or a foreign clearing entity (as the case may be) in relation to a derivative transaction to which it is a party in a representative capacity in the circumstances set out in the derivative transaction rules. The note is provided for ease of reference and to confirm the definition of Australian clearing entity and foreign clearing entity under both the Rules and Corporations Regulations.

Rule 1.2.5 Meaning of Clearing Transaction

Under the Rules, Clearing Entities are required to ensure their Clearing Transactions are Cleared Through a Clearing Facility (see Rule 2.1.1).
Subrule 1.2.5(1) provides that Rule 1.2.5 defines when a Derivative Transaction is a Clearing Transaction for a Clearing Entity in relation to the Derivative Transaction.
Subrule 1.2.5(2) provides that entry into a Clearing Derivative by an Australian Clearing Entity is a Clearing Transaction for the Australian Clearing Entity if the other party to the Clearing Derivative is:
1. an Australian Clearing Entity; or
2. a Foreign Clearing Entity; or
3. a Foreign Internationally Active Dealer.
‘Foreign Internationally Active Dealer’ is defined in Rule 1.2.1 as having the meaning given by regulation 7.5A.65 of the Corporations Regulations. At the date of making the rule, regulation 7.5A.65 provides that a Foreign Internationally Active Dealer is a foreign entity, other than a Foreign Clearing Entity, that is registered or provisionally registered as a swap dealer with the US Commodity Futures Trading Commission; or a securities-based swap dealer with the US Securities Exchange Commission.
Subrule 1.2.5(3) provides that entry into a Clearing Derivative by a Foreign Clearing Entity is a ‘Clearing Transaction’ for the Foreign Clearing Entity if:
1. the other party to the Clearing Derivative is:
  1. an Australian Clearing Entity; or
  2. a Foreign Clearing Entity; or
  3. a Foreign Internationally Active Dealer; and
2. where the other party is a Foreign Clearing Entity or a Foreign Internationally Active Dealer - at least one Foreign Clearing Entity that is party to the Clearing Derivative books the Clearing Derivative to the profit or loss account of a branch of the Foreign Clearing Entity located in Australia.
Subrule 1.2.5(4) provides that for the avoidance of doubt, if:
1. an entity is party, in different capacities, to both sides of a Clearing Derivative; and
2. the entity is a Clearing Entity in relation to the Clearing Derivative in each of those capacities;

subrules 1.2.5(2) to (3) apply as if the Clearing Derivative had two distinct parties, being the entity acting in each of those capacities. It is noted that this may result in entry into such a Clearing Derivative being a Clearing Transaction for the entity.

Rule 1.2.6 References to total gross notional outstanding positions

Subrule 1.2.6(1) provides that a reference in these Rules to the total gross notional outstanding positions held by an entity in a particular capacity is a reference to the entity’s total gross notional outstanding positions aggregated across all Derivatives to which the entity is a party in that capacity, but does not include the following:
1. a position in a Derivative entered into with a related body corporate of the entity; or
2. for an entity:
  1. that is acting in its Personal Capacity and is incorporated or formed outside Australia; or
  2. that is acting in a Representative Capacity in relation to a scheme or trust that is incorporated or formed outside Australia;

a position in a Derivative that was not booked to the profit or loss account of a branch of the entity located in Australia.

The term ‘total gross notional outstanding positions’ is used to determine whether an entity is an ‘Australian clearing entity’ (for the purposes of subregulation 7.5A.61(1) of the Corporations Regulations), or ‘foreign clearing entity’ (for the purposes of subregulation 7.5A.62(1) of the Corporations Regulations). It is also used to calculate whether an entity ‘meets the Clearing Threshold’ to determine whether an entity is an ‘Australian Clearing Entity’ or a ‘Foreign Clearing Entity’ for the purposes of the Rules.
Subrule 1.2.6(2) provides that Rule 1.2.6 applies for the purposes of the Rules and paragraph 7.5A.60(2)(a) of the Corporations Regulations.

Rule 1.2.7 Clearing Threshold

Rule 1.2.7 defines the term ‘meets the Clearing Threshold’. An entity is a Clearing Entity (i.e. an Australian Clearing Entity or a Foreign Clearing Entity) if the entity ‘meets the Clearing Threshold’ (among other things) (see Rule 1.2.4).
Subrule 1.2.7(1) provides that if a Financial Entity holds total gross notional outstanding positions of AUD $100 billion or more in its Personal Capacity on each of two consecutive Calculation Dates, the entity meets the Clearing Threshold in its Personal Capacity from the date (Clearing Start Date) that is the first Monday after the immediately following Calculation Date.
Subrule 1.2.7(2) provides that if a Financial Entity meets the Clearing Threshold in its Personal Capacity, but does not hold total gross notional outstanding positions of AUD $100 billion or more in its Personal Capacity on each of two consecutive Calculation Dates, the Financial Entity ceases to meet the Clearing Threshold in its Personal Capacity on the day (Clearing End Date) after the second of those Calculation Dates.
Subrule 1.2.7(3) provides that if a Financial Entity holds total gross notional outstanding positions of AUD $100 billion or more in a Representative Capacity on each of two consecutive Calculation Dates, the Financial Entity ‘meets the Clearing Threshold’ in that Representative Capacity from the date (Clearing Start Date) that is the first Monday after the immediately following Calculation Date.
Subrule 1.2.7(4) provides that if a Financial Entity meets the Clearing Threshold in a Representative Capacity, but does not hold total gross notional outstanding positions of AUD $100 billion or more in that Representative Capacity on each of two consecutive Calculation Dates, the Financial Entity ceases to meet the Clearing Threshold in that Representative Capacity on the day (Clearing End Date) after the second of those Calculation Dates.
Subrule 1.2.7(5) provides that nothing in this Rule 1.2.7 or Rule 4.1.1 prevents a Financial Entity that has ceased to meet the Clearing Threshold in its Personal Capacity under subrule 1.2.7(2) or in a Representative Capacity under subrule (4) from meeting the Clearing Threshold in that capacity again under subrule 1.2.7(1) or 1.2.7(3).
Subrule 1.2.7(6) provides that this Rule 1.2.7 and Rule 4.1.1 apply for the purposes of these Rules and paragraph 7.5A.60(2)(b) of the Corporations Regulations. For example, a Financial Entity that holds total gross notional outstanding positions of AUD $100 billion or more in a particular capacity as at both 30 September 2026 and 31 December 2026 meets the Clearing Threshold in that capacity from 5 April 2027. If the Financial Entity subsequently holds total gross notional outstanding positions of less than AUD $100 billion in that capacity on both 30 September 2027 and 31 December 2027, the Financial Entity will cease to meet the Clearing Threshold in that capacity on 1 January 2028.

Rule 1.2.8 Opt In to become a Clearing Entity

Rule 1.2.8 sets out how an entity may become an ‘Opt-In Clearing Entity’. The term is defined as “an Opt-In Australian Clearing Entity or an Opt-In Foreign Clearing Entity” (see Rule 1.2.1). ‘Opt-In Australian Clearing Entity’ has the meaning given by paragraphs 1.2.8(4)(a) and 1.2.8(5)(a) (see Rule 1.2.1). ‘Opt-In Foreign Clearing Entity’ has the meaning given by paragraphs 1.2.8(4)(b) and 1.2.8(5)(b) (see Rule 1.2.1).
Subrule 1.2.8(1) provides that an entity may lodge a written notice (an Opt-In Notice) with ASIC setting out the following:
1. the name of the entity;
2. the entity’s Legal Entity Identifier (LEI) or interim entity identifier or, if no LEI or interim entity identifier is available for the entity, a Designated Business Identifier or, if no Designated Business Identifier is available for the entity, a Business Identifier Code (BIC code);
3. which of the following capacities the entity is lodging the notice in:
  1. its Personal Capacity;
  2. a Representative Capacity;
4. if the entity is lodging the notice in a Representative Capacity – the name of each scheme or trust to which the Representative Capacity relates and whether the scheme or trust was incorporated or formed in Australia or outside Australia;
5. the date (Clearing Start Date) on which the entity will commence being an Opt-In Clearing Entity in relation to each capacity in which it is lodging the notice, being a date not less than 30 days from the date the Opt-In Notice is lodged.
Subrule 1.2.8(2) provides that an entity that has lodged an Opt-In Notice under subrule (1) may withdraw the Opt-In Notice by lodging a written notice (Withdrawal Notice) with ASIC setting out the following:
1. the name of the entity;
2. the entity’s LEI or interim entity identifier or, if no LEI or interim entity identifier is available for the entity, a Designated Business Identifier or, if no Designated Business Identifier is available for the entity, a Business Identifier Code (BIC code);
3. which of the following capacities the entity is lodging the notice in:
  1. its Personal Capacity;
  2. a Representative Capacity;
4. if the entity is lodging the notice in a Representative Capacity – the name of each scheme or trust to which the Representative Capacity relates;
5. the date (Clearing End Date) on which the entity will cease being an Opt-In Clearing Entity in relation to each capacity in which it is lodging the notice, being a date not less than 30 days from the date the Withdrawal Notice is lodged.
Subrule 1.2.8(3) provides that ASIC may publish on its website any Opt-In Notice or a Withdrawal Notice given to it by an entity under this Rule.
Subrule 1.2.8(4) provides that if an entity lodges an Opt-In Notice with ASIC under subrule (1) in its Personal Capacity:
1. if the entity is incorporated or formed in Australia – it will be an ‘Opt-In Australian Clearing Entity’ in its Personal Capacity from the Clearing Start Date; and
2. if the entity is incorporated or formed outside Australia – it will be an ‘Opt-In Foreign Clearing Entity’ in its Personal Capacity from the Clearing Start Date.
It is noted that for the purposes of the Corporations Regulations:
1. the entity will be an ‘Australian clearing entity’ (as defined in subregulation 7.5A.61(1) of the Corporations Regulations) in relation to a Derivative Transaction to which it is party in its Personal Capacity: see paragraph 7.5A.61(1)(b) of the Corporations Regulations.
2. the entity will be a ‘foreign clearing entity’ (as defined in subregulation 7.5A.62(1) of the Corporations Regulations) in relation to a Derivative Transaction to which it is party in its Personal Capacity: see paragraph 7.5A.62(1)(c) of the Corporations Regulations.
Subrule 1.2.8(5) provides that if an entity lodges an Opt-In Notice with ASIC under subrule (1) in a Representative Capacity:
1. if the scheme or trust to which the Representative Capacity relates is incorporated or formed in Australia – the entity will be an 'Opt-In Australian Clearing Entity' in that Representative Capacity from the Clearing Start Date; and
2. if the scheme or trust is incorporated or formed outside Australia – the entity will be an ‘Opt-In Foreign Clearing Entity’ in that Representative Capacity from the Clearing Start Date.
Subrule 1.2.8(6) provides that if an entity lodges a Withdrawal Notice under subrule (2), the entity ceases to be an Opt-In Australian Clearing Entity or an Opt-In Foreign Clearing Entity (as the case may be) in relation to each capacity in which it lodges the notice from the Clearing End Date.
Subrule 1.2.8(7) provides that nothing in this Rule affects whether an entity is a Clearing Entity under any other Rule. It is noted that an entity that has lodged an Opt-In Notice in accordance with this Rule will be required to comply with the applicable Clearing Requirements from the Clearing Start Date until the Clearing End Date.

Chapter 2: Clearing Requirements

Chapter 2 of the Rules:
1. imposes clearing requirements as permitted by paragraph 901A(2)(c) and subsection 901A(7) of the Corporations Act;
2. specifies the persons who are required to comply with the clearing requirements imposed by the Rules as permitted by paragraph 901A(3)(e) of the Corporations Act;
3. deals with the manner in which persons are required to comply with the clearing requirements imposed by the Rules as permitted by paragraph 901A(3)(f) of the Corporations Act; and
4. deals with the circumstances in which persons are relieved from complying with the clearing requirements in the Rules that would otherwise apply to them as permitted by paragraph 901A(3)(g) of the Corporations Act.

Rule 2.1.1 Clearing Requirement

Subrule 2.1.1(1) provides that a Clearing Entity must ensure that each of its Clearing Transactions is Cleared Through a Clearing Facility as soon as reasonably practicable after the Clearing Transaction is entered into.
Subrule 2.1.1(2) provides that a Clearing Transaction is Cleared Through a Clearing Facility if:
1. for each party to the Clearing Transaction that is a participant in the Clearing Facility, the Clearing Facility operator enters into a Central Clearing Transaction with that party or another participant acting on behalf of that party; and
2. for each party to the Clearing Transaction that is not a participant in the Clearing Facility, the Clearing Facility operator enters into a Central Clearing Transaction with a participant acting on behalf of that party; or acting on behalf of a person who is acting on behalf of that party; and
3. following entry into the Central Clearing Transactions, each party to the Clearing Transaction has no, or substantially no, further rights against, or obligations to, the other party under the Clearing Derivative to which the Clearing Transaction relates.
It is noted that a participant may be acting on behalf of a person even if it enters into a Central Clearing Transaction as principal.
Subrules 2.1.1(3) and 2.1.1(4) set out when an operator of a Clearing Facility enters into a Central Clearing Transaction for the purposes of Rule 2.1.1.
Subrules 2.1.1(3) and 2.1.1(4) provide that, in Rule 2.1.1, a Clearing Facility operator enters into a Central Clearing Transaction with:
1. a party to a Clearing Transaction who is a participant in the Clearing Facility if the operator is substituted, by novation, as the counterparty to the participant under the Clearing Derivative to which the Clearing Transaction relates; and
2. a participant who is acting on behalf of a party (‘first party’) to a Clearing Transaction if:
  1. the participant is substituted, by novation, as the first party under the Clearing Derivative to which the Clearing Transaction relates; and
  2. the operator is substituted, by novation, as the counterparty to the first party under the Clearing Derivative; and
3. a participant who is acting on behalf of a person who is acting on behalf of a party (‘first party’) to a Clearing Transaction if:
  1. the participant is substituted, by novation, as the first party under the Clearing Derivative to which the Clearing Transaction relates; and
  2. the operator is substituted, by novation, as the counterparty to the first party under the Clearing Derivative; and
4. a person in relation to a Clearing Transaction if the operator and the person enter into a transaction which has an equivalent, or a substantially equivalent, legal and economic effect as between the operator and the person as a novation referred to in paragraph 2.1.1(3)(a), (b) or (c).
Rules 2.1.2 to 2.1.6 provide exceptions to the clearing requirement in Rule 2.1.1, including:
1. where the clearing transaction is terminated before it needs to be cleared;
2. where there is no licensed CS facility or prescribed CS facility;
3. for intra-group trades;
4. for Post-trade Risk Reduction Exercises; and
5. where foreign clearing requirements apply and the clearing transaction is required to be cleared no later than three business days after the clearing transaction was entered into.

Rule 2.1.2 Exception where Clearing Derivative Terminated

Rule 2.1.2 provides that a Clearing Entity is not required to comply with Rule 2.1.1 (i.e. to ensure each of its Clearing Transactions is Cleared Through a Clearing Facility) in relation to a Clearing Transaction if the Clearing Derivative to which the Clearing Transaction relates is terminated before the time by which the Clearing Transaction must be cleared in accordance with Rule 2.1.1.

Rule 2.1.3 Exception where no Licensed CS Facility or Prescribed CS Facility

Rule 2.1.3 provides that a Clearing Entity is not required to comply with Rule 2.1.1 (i.e. to ensure each of its Clearing Transactions is Cleared Through a Clearing Facility) in relation to a Clearing Transaction if:
1. there is no Licensed CS Facility that:
  1. is authorised to provide clearing services in respect of the class of Derivatives that includes the Clearing Derivative to which the Clearing Transaction relates; and
  2. provides clearing services in respect of the Clearing Derivative to which the Clearing Transaction relates; and
2. there is no Prescribed CS Facility that:
  1. is prescribed in relation to the class of Derivatives that includes the Clearing Derivative to which the Clearing Transaction relates; and
  2. provides clearing services in respect of the Clearing Derivative to which the Clearing Transaction relates.

Rule 2.1.4 Exception to Clearing Requirement – Intra-group trades

Rule 2.1.4 provides that a Clearing Entity is not required to comply with Rule 2.1.1 (i.e. to ensure each of its Clearing Transactions is Cleared Through a Clearing Facility) in relation to a Clearing Transaction if at the time the Clearing Transaction is entered into, the counterparty to the Clearing Transaction is a related body corporate of the Clearing Entity.

Rule 2.1.5 Exception to Clearing Requirement – Post-trade Risk Reduction Exercise

Subrule 2.1.5(1) provides that a Clearing Entity is not required to comply with Rule 2.1.1 (i.e. to ensure each of its Clearing Transactions is Cleared Through a Clearing Facility) in relation to a Clearing Transaction if:
1. the Clearing Transaction is entered into by the Clearing Entity as a result of the Clearing Entity participating in a Post-trade Risk Reduction Exercise; and
2. the Clearing Transactions entered into by the Clearing Entity as a result of the Post-trade Risk Reduction Exercise are only entered into with persons who are participants in the Post-trade Risk Reduction Exercise; and
3. the Post-trade Risk Reduction Exercise was conducted in accordance with the rules of a third-party service provider of a Post-trade Risk Reduction service and involved at least two participants, none of which was the third-party service provider.
Subrule 2.1.5(2) provides that in subrule 2.1.5(1), ‘Post-trade Risk Reduction Exercise’ means a process:
1. that is operated by a third-party service provider; and
2. under which portfolios of Derivatives or positions between participants are submitted to the third-party service provider; and
3. in relation to which the following apply:
  1. the process achieves a reduction in risk in relation to the submitted portfolios or positions;
  2. the process may involve any or all of the following on a bilateral or multilateral basis:
    1. Derivatives being modified;
    2. Derivatives being terminated;
    3. Derivatives being replaced;
    4. offsetting Derivatives being created;
  3. a participant is not able to choose which Derivatives or positions are modified, terminated, replaced, or created as offsetting Derivatives, and where acceptance is required from participants, a participant may only accept or reject the result of the process in its entirety as it relates to their submitted Derivatives or positions;
  4. once the process commences, no further Derivatives or positions may be added to the process;
  5. the process is market risk neutral, subject to pre-defined tolerances;
  6. the process does not contribute to price formation;
  7. the process takes the form of a compression, rebalancing or optimisation exercise or a combination of those exercises.

Rule 2.1.6 T+3 clearing if foreign clearing requirements apply

Subrule 2.1.6(1) provides that a Clearing Entity is not required to comply with Rule 2.1.1 in relation to a Clearing Transaction if the Clearing Entity or its counterparty to the Clearing Transaction is subject to a requirement in a foreign jurisdiction (‘relevant foreign jurisdiction’) which requires the Clearing Transaction to be Cleared Through a Clearing Facility by no later than three Business Days after the date on which the Clearing Transaction was entered into.
Subrule 2.1.6(2) provides that a Clearing Entity that relies on the exemption in subrule 2.1.6(1) must ensure that the Clearing Transaction is cleared in accordance with the requirements of the relevant foreign jurisdiction by no later than three Business Days after the date on which the Clearing Transaction was entered into.
Subrule 2.1.6(3) provides that for the purposes of Rule 2.1.6, ‘Business Day’ means a day that is a business day as that term is commonly understood in the relevant foreign jurisdiction.

Chapter 3: Notifications and record keeping

Chapter 3 of the Rules:
1. imposes requirements to provide notifications before they come, or cease to be, a Clearing Entity; and
2. deals with the keeping of records, or the provision of records or other information, relating to compliance with or determining whether there has been compliance with the Rules as permitted by paragraph 901A(3)(h) of the Corporations Act.

Part 3.1 Notifications

Rule 3.1.1 Notification of Clearing State Dates and Clearing End Dates

Subrule 3.1.1(1) provides that a Financial Entity that is incorporated or formed in Australia or outside Australia must notify ASIC of each Clearing Start Date and each Clearing End Date that applies to the entity under Rule 1.2.7. “Financial Entity” is defined in Rule 1.2.1. “Clearing Start Date” and “Clearing End Date” are defined in Rule 1.2.7.
Subrule 3.1.1(2) provides that a notification under subrule 3.1.1(1), of each Clearing Start Date and each Clearing End Date, must be in writing and must set out:
1. the name of the entity;
2. the entity’s LEI or interim entity identifier or, if no LEI or interim entity identifier is available for the entity, a Designated Business Identifier, or if no Designated Business Identifier is available for the entity, a Business Identifier Code (BIC code);
3. whether the entity is giving the notification in its Personal Capacity or in a Representative Capacity;
4. if the entity is giving the notification in relation to a Representative Capacity – the name of each scheme or trust to which the Representative Capacity relates;
5. if the notification is of a Clearing Start Date – the Clearing Start Date and whether the entity will become an Australian Clearing Entity or a Foreign Clearing Entity on the Clearing Start Date;
6. if the notification is of a Clearing End Date – the Clearing End Date and whether the entity will cease to be an Australian Clearing Entity or a Foreign Clearing Entity on the Clearing End Date.
Paragraph 3.1.1(3)(a) provides that a notification under subrule 3.1.1(1) of a Clearing Start Date must be given to ASIC no later than 30 days before the Clearing Start Date. Paragraph 3.1.1(3)(b) provides that a notification under subrule 3.1.1(1) of a Clearing End Date must be given to ASIC no later than 30 days after the Clearing End Date.
Subrule 3.1.1(4) provides that ASIC may publish on its website any notification given to ASIC under Rule 3.1.1.

Rule 3.1.2 Notification of Clearing Entity status to counterparty

Rule 3.1.2 requires a Clearing Entity, or an entity that will become a Clearing Entity, to disclose to a counterparty or prospective counterparty, on request, information set out in Rule 3.1.2 relating to its status as a Clearing Entity.
Subrule 3.1.2(1) provides that Rule 3.1.2 applies to an entity that:
1. is a Clearing Entity; or
2. has given, or is required to give, a notice to ASIC under Rule 1.2.8 or subrule 3.1.1(1).
Subrule 3.1.2(2) provides that an entity to which Rule 3.1.2 applies must, on request by a person that has entered into or proposes to enter into a Derivative Transaction with the entity, disclose in writing to the person the following within a reasonable time after the request:
1. whether the entity is an Australian Clearing Entity or a Foreign Clearing Entity; and
2. if the entity will become or cease to be a Clearing Entity on an identifiable future date – that date and whether the entity will become or cease to be an Australian Clearing Entity or a Foreign Clearing Entity on that date.
Subrule 3.1.2(3) provides that an entity must disclose information under Rule 3.1.2 in relation to each capacity in which the entity is a Clearing Entity or has given, or is required to give, a notice to ASIC under Rule 1.2.8 or subrule 3.1.1(1).

Part 3.2 Records

Rule 3.2.1 Keeping of records

Subrule 3.2.1(1) provides that a Clearing Entity must keep records that enable it to demonstrate it has complied with the requirements of the Rules.
Subrule 3.2.1(2) provides that a Clearing Entity must keep each record referred to in subrule 3.2.1(1) for at least five years from the date the record is made or amended.
Subrule 3.2.1(3) provides that a Clearing Entity is not required to keep the records referred to in subrule 3.2.1(1) where it has arrangements in place to access those records in a Clearing Facility, either directly or through another person, for the period set out in subrule 3.2.1(2), i.e. at least five years from the date the record is made or amended.

Rule 3.2.2 Provision of records or other information

Subrule 3.2.2(1) provides that a Clearing Entity must, on written request by ASIC, provide ASIC with records or other information relating to compliance with or determining whether there has been compliance with the Rules.
Subrule 3.2.2(2) provides that a Clearing Entity must comply with a request under subrule 3.2.2(1) within the time specified in the request.

Chapter 4: Transitional

Chapter 4 of the Rules provides transitional provisions for continuity between the 2015 Rules and the Rules in respect of:
1. determining the Clearing Start Date;
2. opt-in notices and withdrawal notices; and
3. notifications of clearing start and end dates.

Rule 4.1.1 Financial Entities that meet the Clearing Threshold under the 2015 Rules

Subrules 4.1.1(1) provides that, but for the repeal of the 2015 Rules, a Financial Entity would meet the Clearing Threshold in its Personal Capacity for the purposes of the 2015 Rules:
1. on the day the Rules commence—for the purposes of the Rules, the entity meets the Clearing Threshold in its Personal Capacity from the day (Clearing Start Date) that was the Clearing Start Date for the entity for the purposes of the 2015 Rules; or
2. from 6 April 2026 (being the first Monday after 31 March 2026)—for the purposes of the Rules, the entity meets the Clearing Threshold in its Personal Capacity from 6 April 2026 (Clearing Start Date).
Subrule 4.1.1(2) provides that, but for the repeal of the 2015 Rules, a Financial Entity would meet the Clearing Threshold in a Representative Capacity for the purposes of the 2015 Rules:
1. on the day the Rules commence—for the purposes of the Rules, the entity meets the Clearing Threshold in that Representative Capacity from the day (Clearing Start Date) that was the Clearing Start Date for the entity for the purposes of the 2015 Rules; or
2. from 6 April 2026 (being the first Monday after 31 March 2026)—for the purposes of the Rules, the entity meets the Clearing Threshold in that Representative Capacity from 6 April 2026 (Clearing Start Date).

Rule 4.1.2 Opt-In Notices and Withdrawal Notices under the 2015 Rules

Subrule 4.1.2(1) provides that an Opt-In Notice, within the meaning of subrule 1.2.8(1) of the 2015 Rules that has been lodged with ASIC and has not been withdrawn in accordance with subrule 1.2.8(2) is taken to be an Opt-In Notice lodged with ASIC under subrule 1.2.8(1) of the Rules.
Subrule 4.1.2(2) provides that a Withdrawal Notice within the meaning of subrule 1.2.8(2) of the 2015 Rules that has been lodged with ASIC is taken to be a Withdrawal Notice lodged with ASIC under subrule 1.2.8(2) of the Rules.

Rule 4.1.3 Notification of Clearing State Dates and Clearing End Dates under the 2015 Rules

Rule 4.1.3 provides that a notification to ASIC under subrule 3.1.1(1) of the 2015 Rules is taken to be a notification to ASIC under subrule 3.1.1(1) of the Rules.

Legislative instrument and primary legislation

The subject matter and policy implemented by this instrument is more appropriate for a legislative instrument rather than primary legislation because:
1. the instrument is made under power given by Parliament to ASIC that allows ASIC to make derivative transaction rules that impose clearing requirements on certain persons (i.e. clearing entities). The instrument operates to fill in a more comprehensive regulatory framework that sits alongside the primary law; and
2. the instrument contains technical detail which would otherwise introduce unnecessary complexity to the primary legislation. For example, the definition of a clearing derivative scopes in certain OTC interest rate derivative products with certain specifications in relation to the currency of denomination, floating rate index and termination date range.

Duration of the instrument

This instrument will automatically sunset in accordance with section 50 of the Legislation Act 2003 (Legislation Act) on 1 April 2036.
This duration is appropriate because:
1. the instrument is made under a specifically delegated power which is set out in the primary legislation and is intended to complement the requirements or objectives in the primary legislation – see Part 7.5A of the Corporations Act;
2. there would be considerable business uncertainty about the treatment of, or framework for, OTC derivatives business activities giving rise to significant commercial risks and/or costs if the sunsetting period was shorter; and
3. the period is consistent with related ASIC-made rules made under Part 7.5A of the Corporations Act, namely, the ASIC Derivative Transaction Rules (Reporting) 2024 and the Derivative Trade Repository Rules 2023.

Legislative authority

The instrument is made under section 901A of the Corporations Act.
Section 901A of the Corporations Act provides that rules made under this section are by way of legislative instrument. This means that such rules are subject to disallowance in accordance with section 42 of the Legislation Act.
Section 44 of the Legislation Act does not apply to this instrument. This instrument is subject to disallowance.
Section 901K of the Corporations Act provides that ASIC must not make a derivative transaction rule unless the Minister has consented, in writing, to the making of the rule. The Minister consented to the making of this instrument by written notice to ASIC dated 11 March 2026.

Matters that may be dealt with in derivative transaction rules – clearing requirements

Under paragraph 901A(2)(b) and (d) of the Corporations Act, the derivative transaction rules may, subject to Division 2 of Part 7.5A of the Corporations Act, impose clearing requirements, and requirements that are incidental or related to clearing requirements. The term “Clearing requirements” is defined in subsection 901A(7) as requirements for derivative transactions to be cleared through:
1. a licensed CS facility, the licence for which authorises the facility to provide services in respect of a class of financial products that includes the derivatives to which the transactions relate; or
2. a facility that is (or that is in a class of facilities that is) prescribed by the regulations for the purpose of this paragraph in relation to a class of derivatives that includes the derivatives to which the transactions relate.
On 3 September 2015 the Corporations Amendment (Central Clearing and Single-Sided Reporting) Regulation 2015 was made for paragraph 901A(7)(b) of the Corporations Act prescribing:
1. each facility listed in the regulation in relation to all derivatives (see Reg 7.5A.63); and
2. a facility determined by ASIC in relation to the class of derivatives specified in the determination (see Reg 7.5A.63).
Under subsection 901A(3) of the Corporations Act, the derivative transaction rules may also, subject to Division 2 of Part 7.5A of the Corporations Act, deal with matters incidental to or related to requirements referred to in subsection 901A(2) of the Corporations Act, including any of the following:
1. specifying the classes of derivative transactions in relation to which particular requirements apply (see paragraph 901A(3)(a) of the Corporations Act); and
2. for clearing requirements:
  1. specifying the licensed CS facility or prescribed facility (or the class of licensed CS facility or prescribed facility) through which derivative transactions in a particular class must be cleared (see paragraph 901A(3)(d) of the Corporations Act);
  2. specifying a period within which transactions must be cleared (see paragraph 901A(3)(d) of the Corporations Act);
3. specifying the persons who are required to comply with requirements imposed by the rules (see paragraph 901A(3)(e) of the Corporations Act);
4. the manner and form in which persons must comply with requirements imposed by the rules (see paragraph 901A(3)(f) of the Corporations Act);
5. the circumstances in which persons are, or may be, relieved from complying with requirements in the rules that would otherwise apply to them (see paragraph 901A(3)(g) of the Corporations Act);
6. the keeping of records, or the provision of records or other information, relating to compliance with (or determining whether there has been compliance with) the rules (see paragraph 901A(3)(h) of the Corporations Act);
7. any other matters that the provisions of the Corporations Act provide may be dealt with in the derivative transaction rules (see paragraph 901A(3)(i) of the Corporations Act).

Limitations on rule-making power

ASIC’s power to make derivative transaction rules imposing clearing requirements is subject to a number of limitations.

Ministerial determination

Subsection 901B(1) of the Corporations Act provides that the derivative transaction rules cannot impose clearing requirements in relation to derivative transactions unless the derivatives to which the transactions relate are covered by a determination under section 901B of the Corporations Act that relates to requirements of that kind.
On 2 May 2013 the Treasurer made the Corporations (Derivatives) Determination 2013 (Ministerial Determination 2013) under subsection 901B(2) of the Corporations Act, initially determining classes of derivatives in relation to which OTC derivative transaction reporting requirements were able to be imposed.
On 22 August 2015, the Treasurer amended the Ministerial Determination 2013, under the Corporations (Derivatives) Amendment Determination 2015 (No. 1), to determine the classes of derivatives in relation to which clearing requirements were able to be imposed.
On 8 August 2023, the Ministerial Determination 2013 was repealed and replaced by the Corporations (Derivatives) Determination 2023 (Ministerial Determination) which maintained the list of the classes of derivatives in relation to which clearing requirements are able to be imposed.
Under the Ministerial Determination, the classes of derivatives determined are interest rate derivatives denominated in any of the following currencies:
1. Australian dollars;
2. United States dollars;
3. Euros;
4. British pounds;
5. Japanese yen.
The Rules apply only to transactions in derivatives in the prescribed classes.

Transactions and positions to which the Rules apply

Paragraph 901A(8)(c) of the Corporations Act provides that the derivative transaction rules cannot impose a clearing requirement on a person in relation to a derivative transaction entered into before the requirement started to apply to the person, unless the transaction has not been cleared by the time the requirement starts to apply to the person. The Rules continued the clearing requirements of the 2015 Rules and did not impose any new or additional reporting requirements on derivative transactions entered into, or positions as they were, before the commencement of the Rules.

Corporations Regulations

Under section 901C of the Corporations Act, the regulations may provide that the derivative transaction rules:
1. cannot impose requirements (or certain kinds of requirements) in relation to certain classes of derivative transactions; or
2. can only impose requirements (or certain kinds of requirements) in relation to certain classes of derivative transactions in certain circumstances.
As at the date of making the Rules, there are no relevant regulations made under section 901C of the Corporations Act.
Under section 901D of the Corporations Act, the regulations may provide that the derivative transaction rules:
1. cannot impose requirements (or certain kinds of requirements) on certain classes of persons; or
2. can only impose requirements (or certain kinds of requirements) on certain classes of persons in certain circumstances.
Regulation 7.5A.50, made for paragraph 901D(a) of the Corporations Act, precludes derivative transaction rules being imposed upon “end users”, defined as persons who are not:
1. Australian ADIs; or
2. CS facility licensees;
3. AFS licensees; or
4. persons who, in this jurisdiction, provides financial services relating to derivatives to wholesale clients only and whose activities, relating to derivatives, are regulated by an overseas regulatory authority.
Paragraph (2A) of Regulation 7.5A.50, also precludes the derivative transaction rules from imposing requirements relating to a class of derivatives on AFS licensees:
1. who are taken not to be end users only because they are an AFS licensee; and
2. whose AFS licence does not authorise them to provide financial services in relation to that class of derivatives.
However, the regulation does not apply to a provision of derivative transaction rules to the extent that the provision imposes clearing requirements or requirements that are incidental or related to clearing requirements: subregulation 7.5A.50(4). As at the date of making the Rules, there are no relevant regulations made under section 901D of the Corporations Act that would apply to the Rules.

Consultation

Except in certain emergency situations (see section 901L), under section 901J of the Corporations Act, ASIC must not make a derivative transaction rule unless ASIC:
1. has consulted the public about the proposed rule; and
2. has also consulted APRA, the RBA and any other person or body as required by regulations made for the purpose of subparagraph 901J(1)(b)(iii)).
To date no regulations have been made under subparagraph 901J(1)(b)(iii).
For further information relating to consultation on the Rules and satisfaction of the above consultation requirements, see the earlier section under the heading ‘Consultation’.

Ministerial consent

Except in certain emergency situations (see section 901L), under section 901K of the Corporations Act, ASIC must not make a derivative transaction rule unless the Minister has consented, in writing, to the making of the rule. ASIC made the Rules with the written consent of the Minister.

Relevant considerations in making derivative transaction rules

In considering whether to make a derivative transaction rule, ASIC:
1. must have regard to:
  1. the likely effect of the proposed rule on the Australian economy, and on the efficiency, integrity and stability of the Australian financial system; and
  2. the likely regulatory impact of the proposed rule; and
  3. if the transactions to which the proposed rule would relate would be or include transactions relating to commodity derivatives—the likely impact of the proposed rule on any Australian market or markets on which the commodities concerned may be traded; and
2. may have regard to any other matters that ASIC considers relevant, for example, relevant international standards and international commitments and matters raised in consultations (if any) under section 901J (see section 901H of the Corporations Act).

Statement of Compatibility with Human Rights

The Explanatory Statement for a disallowable legislative instrument must contain a Statement of Compatibility with Human Rights under subsection 9(1) of the Human Rights (Parliamentary Scrutiny) Act 2011. A Statement of Compatibility with Human Rights is in the Attachment.

Attachment

Statement of Compatibility with Human Rights

This Statement of Compatibility with Human Rights is prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

ASIC Derivative Transaction Rules (Clearing) 2026

Overview

The ASIC Derivative Transaction Rules (Clearing) 2026 (the Rules, or the instrument) are made by ASIC under section 901A of the Corporations Act 2001 (the Corporations Act), acting with the consent of the Minister under section 901K of the Corporations Act.
The Rules remake the ASIC Derivative Transaction Rules (Clearing) 2015 (the 2015 Rules) without significant amendment, continuing the operation of Australia’s over-the-counter (OTC) derivatives central clearing regime under Part 7.5A of the Corporations Act.
On 11 December 2015, with the Minister’s consent, ASIC made the 2015 Rules to implement the clearing regime. The clearing regime fulfilled a key component of Australia’s Group of Twenty OTC derivatives reforms commitment at the Pittsburgh Summit in September 2009 following the Global Financial Crisis.
The Rules specify clearing requirements that apply to certain Australian and foreign financial entities (called Clearing Entities). The Rules require Clearing Entities to centrally clear transactions in certain OTC interest rate derivative products with certain specifications in relation to the currency of denomination, floating rate index and termination date range.
The Rules remake the 2015 Rules in substantially the same form, except for minor administrative updates to modernise the 2015 Rules and one minor policy update to broaden an existing exception for clearing derivatives resulting from multilateral portfolio compression activities to all post-trade risk reduction exercises. Broadly, the clearing regime serves to reduced counterparty risk associated with certain OTC derivative transactions, thereby reducing systemic risk in the financial industry to promote financial stability. Further, the Rules facilitate market participants and market infrastructures to maintain, or obtain, equivalence and substituted compliance determinations from overseas regulators.

Assessment of human rights implications

The Rules do not engage any of the applicable rights or freedoms.

Conclusion

The Rules are compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

[1] https://www.asic.gov.au/regulatory-resources/find-a-document/consultations/cs-33-proposed-remake-of-the-asic-derivative-transaction-rules-clearing-2015/

[2] https://www.asic.gov.au/about-asic/news-centre/news-items/asic-proposes-to-remake-derivative-clearing-rules/

[3] https://www.asic.gov.au/regulatory-resources/find-a-document/consultations/cp-231-mandatory-central-clearing-of-otc-interest-rate-derivative-transactions/

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