Document ID: chunk:federal_register_of_legislation:F2024C01249:reg:3:p7
Version: federal_register_of_legislation:F2024C01249
Segment Type: reg
Provision Reference: reg 3 (pt 7/43)
Character Range: 718265–721267

entity in relation to derivative transactions to which it is a party otherwise than in a representative capacity.
 (2) An entity is a foreign clearing entity in relation to a derivative transaction to which it is a party in a representative capacity in the circumstances set out in the derivative transaction rules.

7.5A.63  Clearing requirements—prescribed facilities
 (1) This regulation is made for paragraph 901A(7)(b) of the Act.
 (2) Each facility in the following list is prescribed in relation to all derivatives:
 (a) CME Clearing Europe Limited;
 (b) Eurex Clearing AG;
 (c) Japan Securities Clearing Corporation;
 (d) NASDAQ OMX Clearing AB;
 (e) OTC Clearing Hong Kong Limited.
 (3) A facility determined by ASIC for the purposes of this subregulation is prescribed in relation to the class of derivatives specified in the determination.
 (4) ASIC may, by notifiable instrument, determine a facility for the purposes of subregulation (3) in relation to a specified class of derivatives, but only if ASIC is satisfied that:
 (a) the facility's principal place of business is located in a foreign country; and
 (b) the facility is authorised to operate as a central counterparty for the specified class of derivatives in that country; and
 (c) the regulatory regime in the facility's principal place of business has substantially implemented the CPSS‑IOSCO Principles applicable to the regulation of central counterparties; and
 (d) adequate arrangements exist for ASIC and the Reserve Bank of Australia to have access to information about the level of clearing activity by participants that are incorporated or formed in Australia, in relation to derivatives that are subject to clearing requirements under the derivative transaction rules.
 (6) In this regulation:
CPSS‑IOSCO Principles means the principles for financial market infrastructures:
 (a) issued in April 2012 by the Committee on Payment and Settlement Systems (the CPSS) and the International Organization of Securities Commissions (the IOSCO); and
 (b) as supplemented, superseded or modified from time to time by principles, recommendations or standards issued by the CPSS or IOSCO (or a successor of the CPSS or IOSCO).

7.5A.64  Persons on whom clearing requirements cannot be imposed
 (1) This regulation is made for paragraph 901D(a) of the Act.
 (2) The derivative transaction rules cannot impose clearing requirements in relation to a derivative transaction on a person who is not:
 (a) an Australian clearing entity in relation to the transaction; or
 (b) a foreign clearing entity in relation to the transaction.
Example: This regulation prevents the derivative transaction rules imposing clearing requirements on, among other things, a range of foreign public entities including the following (subject to paragraphs (2)(a) and (b)):
(a) central banks;
(b) Government debt offices;
(c) multilateral development banks;
(d) the Bank for International Settlements and other similar international organisations.

7.5A.65