On 28 October 2025, the Australian Securities and Investments Commission (ASIC) released its proposal to remake the ASIC Derivative Transaction Rules (Clearing) 2015 (the 2015 Rules), which are due to sunset on 1 April 2026. The proposal aims to preserve the continued operation of Australia’s over-the-counter (OTC) derivatives central clearing framework and to ensure compliance continuity under the Australian Corporations Act 2001.
Following the 2008 global financial crisis, the Leaders of the Group of Twenty (G20) nations, including Australia, committed to structural reforms of the OTC derivatives market. A cornerstone of that commitment was the requirement that all standardised OTC derivatives be cleared through central counterparties (CCPs). These reforms sought to improve market transparency, mitigate systemic risk, and safeguard against market abuse.
On 3 January 2013, Australia enacted legislation establishing a framework for implementing its G20 commitments, followed by the making of the ASIC Derivative Transaction Rules (Clearing) 2015 on 3 December 2015 under section 901A of the Corporations Act 2001. The 2015 Rules impose clearing obligations on certain Australian and foreign financial entities—termed clearing entities—for OTC interest rate derivative products that meet specific criteria relating to currency, floating rate index, and termination date range. Entities that voluntarily opt into compliance may benefit from substituted compliance arrangements recognising equivalent regimes in other jurisdictions.
The CS33 proposed remake of the ASIC Derivative Transaction Rules (Clearing) 2015 forms part of Australia’s ongoing commitment to maintaining robust post-crisis market infrastructure for OTC derivatives. The updated version introduces two targeted changes: first, technical and administrative refinements to modernise the existing rules; and second, an extension of exemptive relief for clearing derivative transactions resulting from post-trade risk reduction exercises, in line with existing relief for multilateral portfolio compressions. ASIC also proposes allowing transitional relief for certain swaptions to lapse upon the 1 April 2026 sunset date.
ASIC proposes to remake the 2015 Rules in substantially the same form, with only minor administrative updates and an extension of exemptive relief for certain post-trade risk reduction exercises. The consultation seeks stakeholder submissions by 5pm AEDT on 28 November 2025, to be submitted via otcd@asic.gov.au.
Expiry of Transitional Relief for Certain Swaptions
“ASIC also proposes to let transitional relief from the 2015 Rules, in relation to certain swaptions, expire on 1 April 2026.” The decision to allow the expiry of this relief reflects the maturity of the clearing framework and ASIC’s assessment that market participants now possess sufficient operational capacity to meet clearing obligations.
Consultation Process
The consultation period runs until 28 November 2025, after which ASIC will assess industry submissions before finalising the remake. The updated rules are intended to take effect seamlessly upon the 1 April 2026 sunset of the existing 2015 Rules, ensuring no regulatory gap in Australia’s OTC clearing regime.
