Australia’s commitment to over-the-counter derivative reforms

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A global focus on reforming the over-the-counter (OTC) derivative market stems from the recent global financial crisis and involves regulators committed to the same objectives: to enhance transparency of transaction information available to relevant authorities and the public; ensure financial stability; and support detection and prevention of market abuse.

In 2012, the Committee on Payment and Settlement Systems and the International Organization of Securities Commissions published the CPSS-IOSCO Principles for financial market infrastructures, which set out standards for trade repositories (and other financial market infrastructures) to be applied by regulators around the world.

Trade repositories are facilities to which information about derivative transactions, such as maturity, price, reference entity and counterparty identity, can be reported by one or both counterparties. Their central function is to store and provide access to that data to users, domestic and overseas regulators, and the public, essentially serving as a reliable central data source which in turn should greatly enhance global transparency in the market…

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