Notice

Expansion of OTC Product coverage

What's this about:
  • ASX 24 Market
  • Clearing
  • Product
  • Operations
  • Rules
  • Compliance
  • Risk
  • OTC Cleared
  • New OTC Products
  • Asset Swaps
  • BBSW vs AONIA Basis Swaps
  • extended maturities
  • Show more
Notice reference number: 1172.16.10
Date published: 04/10/16
Effective as of: 03/10/16
Last updated: 04/10/16

On 3 October 2016, ASX expanded the product coverage of the OTC Clearing Service to include:

  • New OTC Interest Rate Derivatives products – Asset Swaps and BBSW vs AONIA Basis Swaps; and

  • Extended maturities for certain existing OTC Interest Rate Derivatives products.

A high level summary of the expanded OTC Interest Rate Derivatives products ASX now clears is available here. ASX has made these changes in response to market demand and to enhance ASX’s range of Australian dollar clearable products in accordance with market developments and liquidity.

Miscellaneous amendments

ASX has also made several miscellaneous (and unrelated) amendments to the OTC Handbook as follows (also effective 3 October 2016):

  • Addition of a new condition for acceptance of OTC Transactions for registration (OTC Handbook 4.5(b)(i)): An OTC Transaction that has been reported to a data repository can be accepted by ASX for registration only if ASX is capable of reporting to the data repository. This is because ASX has a regulatory obligation to report the termination of OTC Transactions accepted for clearing to the data repository to which the OTC Transaction was originally reported. Currently ASX has reporting capability to DTCC. However, ASX will consider expanding its reporting capability to include other data repositories on request by OTC Participants.

  • Confirm that OTC Intraday Margin must be met by an OTC Participant within one hour of ASX making a call or such other period of time as notified by ASX (OTC Handbook 5.6). This approach to the settlement of intraday margin calls has been endorsed by the ASX Clear (Futures) Risk Consultative Committee.

All the amendments to the OTC Handbook outlined in this notice were the subject of prior consultation with OTC Participants (refer to ASX's Consultation Paper) and are available here.

What do I need to do by when?

OTC Participants do not need to take any action. However, OTC Participants may now clear an expanded product range with ASX (refer above).

Need more information?

Issued by

Catherine Eakin, Senior Manager & Senior Legal Counsel

Contact information

Allan McGregor, Senior Manager, Rates
+61 (02)  9227 0814
allan.mcgregor@asx.com.au 

Disclaimer