ASIC reminds firms about changes to CFD, margin FX transactions reporting

Maria Nikolova

Certain transactions will have to be reported to derivative trade repositories using a ‘life cycle’ method, rather than an end-of-day ‘snapshot’ method.

Australia unveiling new law to decimate smaller FX firms

The Australian Securities & Investments Commission (ASIC) has earlier today posted its latest Market Integrity Report which covers highlights of the work of the regulator in the second half of 2018. Importantly, the document includes some reminders about recently introduced rules and future regulations.

Thus, ASIC reminds firms about changes to reporting for several derivatives products. The regulator is implementing its proposed changes to the way transactions in contracts for difference (CFDs), margin FX and equity over-the-counter (OTC) derivatives must be reported. The changes will provide better reporting to help the regulator monitor market misconduct.

The changes involved making an excluded derivative determination, requiring these types of transactions to be reported to derivative trade repositories using a ‘life cycle’ method, rather than an end-of-day ‘snapshot’ method.

Following consideration of feedback received on the proposal, an excluded derivative determination under subrule 2.2.8(3) of the ASIC Derivatives Transaction Rules (Reporting) 2013, covering CFDs, margin FX and equity OTC derivatives was made on November 30, 2018. effective from July 1, 2019.

In addition, the regulator stresses the importance of the entity identifier requirement under OTC derivative transactions reporting rules.

From April 1, 2019, financial entities that are required to report trades in OTC derivative transactions under the ASIC Derivative Transaction Rules (Reporting) 2013 must report a standard identifier for any company or other entity (excluding individuals) that is a counterparty to a transaction in an OTC derivative, including CFDs and margin FX.

The standard identifiers to meet this requirement are:

› Legal Entity Identifier (LEI)

› if no LEI or interim entity identifier is available for the entity, an international business entity identifier issued by Avox Limited (AVID)

› if no AVID is available, a Business Identifier Code (BIC).

A conditional short-term extension of relief has been granted.

Read this next

Retail FX

Spotware rolls out Manager’s API for cTrader brokers

Spotware Systems, a technology provider for the electronic trading industry, has released its new Manager’s API for Brokers, providing powerful tools for server-server integration.

Metaverse Gaming NFT

Dubai Museum taps Binance to jump onto NFT bandwagon

Dubai’s Museum of the Future, the $136 million UAE government-sponsored museum that opened a few weeks ago, is joining forces with Binance NFT to roll out a range of digital products on blockchain.

Digital Assets

Ripple and Lithuanian FINCI partner for XRP-based payments

Ripple is looking to expand its presence in Europe, forming a new partnership with Lithuanian electronic money institution FINCI.

Digital Assets

Crypto.com enables Shopify merchants to accept crypto payments

Crypto.com has integrated with Canadian e-commerce giant Shopify so global merchants can accept crypto payments and save on processing fees through cash-final settlements.

Institutional FX

FX volume drops 13pct at CLS Group in April 2022

FX settlement specialist CLS Group today reported that the executed volumes of currency trading on its platforms were notably down in April.

Crypto Insider, Opinion

Regulation: The Gold-Standard for Crypto-Assets

When the US supervisory authority SEC allowed an investment product referencing Bitcoin futures to be traded for the first time last October, this was widely perceived as a signal that cryptocurrencies had finally become established as an asset class.

Executive Moves

Solid hires FX industry veteran Darren Barker for multi-bank ECN’s business development

His curriculum vitae includes former roles at Cantor Fitzgerald, Sucden Financial, R.J. O’Brien, Jefferies, Natixis, Unicredit, J.P. Morgan, Raiffeisen, RBS International, UBS, Deutsche Bank, and Citi. 

Inside View

Mihails Safro, xpate CEO: Tips sellers need to know to overcome compliance obstacles

The unprecedented growth of e-commerce changed shopping dramatically last year. Many sellers suddenly faced a rapidly growing number of customers who had to stay home during the lockdown. When some clients adopted Netflix and Spotify as part of a daily routine, others ventured into online business. Robinhood alone saw a whopping 6 million rise in user numbers in 2 months. 

Institutional FX

BMLL delivers Level 3 data to Kepler Cheuvreux for order book analytics and algo performance

The solution covers more than 6.5 years of harmonised historical data from 65 venues and combines it with easy to use APIs and analytics libraries in a secure cloud environment. 

<