The Australian Securities and Investments Commission (ASIC) has released a consultation paper proposing to remake the ASIC Derivative Transaction Rules (Clearing) 2015, which underpin the central clearing of Australia’s over-the-counter (OTC) derivatives. The existing rules are due to automatically sunset on 1 April 2026.

The proposal aims to maintain the continuity of Australia’s OTC derivatives clearing regime, first introduced in response to global financial reforms following the 2008 financial crisis. ASIC said the remade rules would be “substantially the same” as the 2015 version, with only minor updates to reflect modern administrative practices and developments in post-trade risk management.

Key Proposed Changes

Under the proposal, ASIC would:

• Introduce minor administrative updates to modernise the 2015 Rules; and

• Extend exemptive relief to derivative transactions resulting from post-trade risk reduction exercises, aligning with existing relief for multilateral portfolio compressions.

ASIC also confirmed that transitional relief for certain swaptions would expire on 1 April 2026, coinciding with the sunsetting of the current rules.

Consultation Period Open

Industry participants are invited to provide feedback on the proposed remake by 5pm AEDT on 28 November 2025. Submissions can be sent via email to [email protected]. Full details are outlined in Consultation Statement 33 (Proposed remake of the ASIC Derivative Transaction Rules (Clearing) 2015), available on ASIC’s website.

Background and Regulatory Context

Australia’s central clearing framework for OTC derivatives was introduced following the G20’s 2009 commitment to strengthen transparency and mitigate systemic risks in global derivatives markets. The G20 reforms require all standardised OTC derivative transactions to be cleared through central counterparties.

Legislation implementing these commitments came into force in Australia in January 2013, enabling ASIC to make rules requiring the central clearing of certain OTC interest rate derivatives. The 2015 Rules currently apply to designated Australian and foreign financial entities, mandating the central clearing of specific OTC products based on currency, floating rate index, and maturity criteria. Entities may also voluntarily opt into compliance to benefit from substituted compliance arrangements with equivalent foreign regimes.

ASIC said remaking the rules will ensure the continued operation of this core part of Australia’s derivatives market infrastructure and maintain alignment with international regulatory standards.

For further information, ASIC has directed stakeholders to its webpage on the Central clearing of OTC derivatives.