Response to Australian CFR on Bond and Repo Clearing

On September 4, ISDA submitted a response to a consultation by the Australian Council of Financial Regulators (CFR) on the central clearing of bonds and repos in Australia. In response to changes in the size and structure of the Australian bond and repo markets, the CFR sought feedback on the costs and benefits of introducing a central counterparty (CCP) in the Australian bond and repo market. It also sought views on the circumstances under which a bond and repo CCP could be operated safely and efficiently by an overseas operator and what additional protections may be required in Australia.

ISDA welcomes the fact that the CFR is not considering the introduction of a clearing mandate as part of this consultation. In the response, ISDA sets out the costs and benefits of voluntary central clearing for the Australian bond and repo markets. ISDA also provides comments on participation and other key factors to consider for a bond and repo clearing offering to be viable. On location, the response states it is not uncommon for an overseas operator to provide clearing services related to non-domestic markets and ISDA does not see any increased risk for an overseas operator to provide clearing services for the Australian bond and repo markets, as long as the overseas CCP is appropriately supervised and risk managed.

Documents (1) for Response to Australian CFR on Bond and Repo Clearing

ISDA Omnibus Canadian Representation Letter

On September 2, ISDA published the Omnibus Canadian Representation Letter, which combines previously published representation letters drafted to assist firms in compliance with Canadian trade reporting, business conduct, regulatory margin and clearing classification rules. The Omnibus Canadian Letter is designed...

Joint Response on Cross-margining

On August 31, ISDA and FIA submitted a letter to the US Commodity Futures and Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) on the agencies’ joint request for comment on the implementation of portfolio margining and cross-margining...