Central Clearing of OTC Derivatives in Australia June 2011

The Council of Financial Regulators (comprising the Australian Prudential Regulation Authority, the Australian Securities and Investments Commission and the Treasury, and chaired by the Reserve Bank) has issued a discussion paper on Central Clearing of Over-the-counter (OTC) Derivatives in Australia as part of its consideration of Australia's response to the substantial international reform efforts underway in global OTC derivatives markets.

The paper discusses the evolving global landscape for OTC derivatives and central clearing, the Australian market for OTC derivatives, and a range of considerations that need to be weighed if central clearing in the domestic market is to be established.

Ahead of making recommendations to the Government on this matter, the Council is seeking feedback on the views and propositions set out in the paper. In addition to inviting written submissions from interested parties, Council agencies will be hosting a number of roundtable discussions over the period ahead, and will arrange other meetings as appropriate.