ASIC is seeking feedback from reporting entities, including small-scale exempt entities, on our proposed changes to the ASIC Derivative Transaction Rules (Reporting) 2024 (the 2024 Reporting Rules) and minor and related proposed changes to the ASIC Derivative Transaction Rules (Clearing) 2015 (the Clearing Rules).

Consultation Paper 375 Proposed changes to the ASIC Derivative Transaction Rules (Reporting): Third consultation (CP 375) proposes changes to the 2024 Reporting Rules to:

• simplify the exclusion of exchange-traded derivatives;
• simplify the scope of foreign entity reporting;
• remove the alternative reporting provisions;
• clarify the exclusion of FX securities conversion transactions; and
• add additional allowable values for two data elements.

Additionally, CP 375 proposes minor changes to the Clearing Rules to:

• simplify and align the exclusion of exchange-traded derivatives with the 2024 Reporting Rules; and
• make minor updates to re-reference the changed location of definitions in the Corporations Act 2001 which have been moved by the Treasury Laws Amendment (2023 Law Improvement Package No. 1) Act 2023.

Our proposed changes would commence on 21 October 2024, except for the changes to the scope of foreign entity reporting and removal of alternative reporting provisions which would commence on 1 April 2025.

The proposed changes have been informed by our review and analysis of the outstanding policy matters following the release of Consultation Paper 361 Proposed changes to simplify the ASIC Derivative Transaction Rules (Reporting): Second consultation (CP 361) in May 2022, and our ongoing stakeholder engagements.

ASIC considers most reporting entities would not face any material additional compliance burden implementing the proposed changes. However, a small number of international reporting entities and some small-scale exempt reporting entities may be impacted.

Providing feedback

Feedback on the proposals is welcome. Email your submission to otcd@asic.gov.au by 5pm on 28 March 2024.

Background

Commencing 21 October 2024, the 2024 Reporting Rules repeal and replace the current ASIC Derivative Transaction Rules (Reporting) 2022 to align with international reporting standards, consolidate transitional provisions and exemptions within the 2024 Reporting Rules and ensure that the reporting requirements are fit for purpose.

The 2024 Reporting Rules were made on 19 December 2022 following two rounds of consultation:

1. Consultation Paper 334 Proposed changes to simplify the ASIC Derivative Transaction Rules (Reporting): First consultation (CP 334), released 27 November 2020; and
2. CP 361, released 16 May 2022, followed by Consultation Paper 361a ASIC Derivative Transaction Rules (Reporting) 2024: Follow-on consultation on changes to data elements and other minor amendments (CP 361a), released 15 November 2023.

ASIC is Australia’s corporate, markets and financial services regulator.