Australia - Deadline for Phase 3B OTC Derivatives Issuers Moved to 4 December 2015

This article was written by Patricia Tsang and Sophie Gerber (Director, TRAction Fintech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term Pty Ltd which provides services to report on behalf of OTC derivatives issuers).

The Australian Securities and Investments Commission (ASIC) announced that it has taken an in principle decision to extend the commencement date for reporting of reportable transactions by Phase 3B reporting entities to 4 December 2015 (from 12 October 2015).

In ASIC’s words:

We have been monitoring industry's readiness to meet their trade reporting Obligations Obligations In finance, an obligation is a financial responsibility where the terms of a contract must be met. Should an obligation between parties fail then the party who is at default may face legal action. In this scenario, the guilty party will not only have to agree to pay the set amount to fulfill the contractual arrangement but may also be responsible for covering all legal proceedings cost. Routine payments or outstanding debt of any kind are considered financial obligations, so if someone owes you In finance, an obligation is a financial responsibility where the terms of a contract must be met. Should an obligation between parties fail then the party who is at default may face legal action. In this scenario, the guilty party will not only have to agree to pay the set amount to fulfill the contractual arrangement but may also be responsible for covering all legal proceedings cost. Routine payments or outstanding debt of any kind are considered financial obligations, so if someone owes you Read this Term. We are aware that, following the release by the Australian Treasury of the single-sided reporting regulations, some entities have revised business decisions about whether they can rely on single-sided reporting or whether to establish other trade reporting arrangements, such as delegated reporting. As such, some of these entities may not have completed the steps needed to meet their reporting obligations for the 12 October 2015 deadline.

In light of this, ASIC has taken an in principle decision to extend the commencement date for phase 3B reporting to 4 December 2015.

This should provide sufficient time for those who require it, to put in place final arrangements for the last phase of trade reporting in Australia. This will not preclude those who are ready, from commencing reporting on Monday 12 October.

Whilst this may give Phase 3B entities some breathing room, these entities will do well to act now to ensure that they are ready to report in line with the new deadline.

For more information on this area, please see previous published articles by the authors:

23 August 2015 – “Australia – Will Single-Sided Reporting Relief Help OTC Derivative Issuers?”

6 September 2015 – “Australia – To Whom Should Australian OTC Derivative Issuers Report”

10 September 2015 – “Australia - October 12 Reporting Deadline Looming - Who needs to report under intermediary authorisation or authorised representative arrangements in relation to OTC derivatives?”

20 September 2015 – “Final Regulations on Single-Sided Reporting for OTC Derivatives”

24 September 2015 – “Australia – October 12 Reporting Deadline Looming -The Safe Harbour Benefits of Delegated Reporting”

30 September 2015 - "Australia - October 12 reporting deadline looming - What are the penalties for not reporting?"

2 October 2015 - "Australia - October 12 reporting deadline looming – Are you worried about providing sensitive data?

8 October 2015 - "Australia - October 12 reporting deadline looming – Are you ready?"