Federal Register of Legislation - Australian Government

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SLI 2013 No. 150 Regulations as made
This regulation amends the Corporations Regulations 2001 to allow for interim reporting of derivatives contracts to repositories that are licensed in other jurisdictions prior to the establishment of licensed trade repositories in Australia.
Administered by: Treasury
Made 28 Jun 2013
Registered 29 Jun 2013
Tabled HR 12 Nov 2013
Tabled Senate 12 Nov 2013
Date of repeal 01 Jul 2013
Repealed by Division 1 of Part 5A of the Legislative Instruments Act 2003

EXPLANATORY STATEMENT

 

Select Legislative Instrument 2013 No. 150

Issued by authority of the Treasurer

Corporations Act 2001

Corporations Amendment (Derivative Trade Repositories) Regulation 2013

The Corporations Act 2001 (the Act) provides for the regulation of corporations, financial markets and products and services, including in relation to licensing, conduct, financial product advice and disclosure.

Subsection 901A(6) of the Act provides that reporting requirements are requirements for information about derivative transactions, or about positions relating to derivative transactions, to be reported to inter alia, 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.

The Corporations Amendment (Derivative Trade Repositories) Regulation 2013 (the proposed Regulation)  makes a number of amendments to the Corporations Regulations 2001 (the Principal Regulations).  These amendments list a number of facilities as being prescribed if the facility is registered to operate as a derivative trade repository under a law of a foreign jurisdiction.

The Regulation ceases to have effect at the end of 30 June 2014.

The Regulation has been discussed with industry stakeholders and the proposed prescribed facilities in targeted consultation over the first half of calendar year 2013.

A regulatory impact statement on the proposed trade reporting reforms has been judged as compliant by the Office of Best Practice Regulation (ref: 13512).

Details of the Regulation are set out in Attachment A.

A statement of the Regulation’s compatibility with human rights is set out in Attachment B.

The Regulation is a legislative instrument for the purposes of the Legislative Instruments Act 2003.

Under the Corporations Agreement 2002, the Commonwealth must consult with the Legislative and Governance Forum for Corporations before making amendments to certain provisions of the Corporations Regulations 2001.  The Council has been consulted.  No adverse views have been expressed.  The Act specifies no other conditions that need to be satisfied before the power to make the Regulation may be exercised.

The Regulation commences on the day after registration.


ATTACHMENT A

 

Details of the Corporations Amendment (Derivatives Trade Repositories) Regulation 2013

Section 1 – Name of Regulation

Section 1 provides that the name of the Regulation is the Corporations Amendment (Derivative Trade Repositories) Regulation 2013.

Section 2 – Commencement

Section 2 provides that the Regulation commences on the day after registration.

Section 3 – Authority

Section 3 provides that the Regulation is made under the Corporations Act 2001 (the Act).

Section 4 – Schedule(s)

Section 4 provides that each instrument specified in the Schedule is amended or repealed as set out in the applicable items in the Schedule.

 

Schedule 1 – Amendments

Item [1]

This provision allows for interim reporting of derivatives contracts to repositories that are licensed in other jurisdictions prior to the establishment of licensed trade repositories in Australia.

This item amends the Corporations Regulations 2001 by adding a new Part 7.5A at the end of Part 7.5 as well as a new Division 2 and a new subdivision 2.1.

Subsection 901A(6) of the Act provides that reporting requirements are requirements for information about derivative transactions, or about positions relating to derivative transactions, to be reported to inter alia, 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.

This item lists a number of facilities as being prescribed if the facility is registered to operate as a derivative trade repository under a law of a foreign jurisdiction.

The prescribed trade repositories would be:

(a)        DTCC Data Repository (U.S.) LLC;

(b)        DTCC Derivatives Repository Ltd.;

(c)        DTCC Data Repository (Japan) KK;

(d)       DTCC Data Repository (Singapore) Pte Ltd;

(e)        Chicago Mercantile Exchange Inc.;

(f)        INFX SDR, Inc.;

(g)        ICE Trade Vault, LLC; and

(h)        the Monetary Authority appointed under section 5A of the Exchange Fund Ordinance of Hong Kong.

The Regulation ceases to have effect at the end of 30 June 2014.

 


 

ATTACHMENT B

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Corporations Amendment (Derivative Trade Repositories) Regulation 2013

This Legislative Instrument is 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.

Overview of the Legislative Instrument

The Corporations Amendment (Derivative Trade Repositories) Regulation 2013 (the proposed Regulation) would make a number of amendments to the Corporations Regulations 2001 (the Principal Regulations).  These amendments would list a number of facilities as being prescribed if the facility is registered to operate as a derivative trade repository under a law of a foreign jurisdiction.

Human rights implications

This Legislative Instrument does not engage any of the applicable rights or freedoms.

Conclusion

This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.