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OTC Clearing

The natural home of Australian and New Zealand OTC liquidity

The natural home of Australian and New Zealand OTC liquidity

We provide the ability for Banks, Funds and end-users across the globe to clear A$ and NZ$ OTC Interest Rate Derivatives 24 hours per day between Monday morning and Saturday (7:00am AEST).  Since launching in 2013, the ASX OTC Clearing Service has cleared over A$40 trillion in OTC notional value.

ASX's OTC Clearing service is tailor made to meet the risk management needs of the Australian and New Zealand market and the highest globally regulatory standards.

 

Australian and New Zealand focus

We have over 700 staff dedicated to business, technology, operations and management. This focus means we understand Australian and New Zealand regulation, onshore default management, collateral custody and bankruptcy treatment, as well as the deepest connections into the local markets, to take effective and efficient action.

Platform efficiency

ASX OTC Clearing is focused on delivering market-aligned best practice, including:

  • 24-hour clearing between Monday 12:01 am and 7:00 am Saturday (AEST)
  • Cross-product margin offsets between interest rate futures and OTC derivatives delivering significant initial margin reductions
  • Industry approved margining model based on a historical Value at Risk (VaR) methodology
  • Distribution via OTC trading platforms.
  • Large range of acceptable collateral with access to centralised Collateral Management through ASX Collateral.
  • Austraclear connectivity

Broad product offering

AUD Interest Rate Swaps
  • BBSW 1m vs. Fixed (10yrs)
  • BBSW 3m, 6m vs. Fixed (30yrs)
AUD BOB Swaps
  • BBSW 1m vs. AONIA (10yrs)
  • BBSW 3m vs. AONIA (10yrs)
  • BBSW 6m vs. AONIA (10yrs)
AUD Overnight Index Swaps (3yrs)
NZD Interest Rate Swaps
  • BKBM 3m vs. Fixed (15yrs) 
AUD Single Currency Basis Swaps
  • BBSW 1m vs. BBSW 3m (10yrs)
  • BBSW 3m vs. BBSW 6m (30yrs)
NZD Overnight Index Swaps (NZ OIS) (2yrs)

A detailed ASX OTC Clearing trade eligibility matrix is available here.

International regulatory authorisations

United States

ASX Clear (Futures) holds Exempt DCO status under U.S. regulations, allowing it to clear proprietary swap positions for its U.S. Clearing members and their affiliates.

The U.S. Commodity Futures Trading Commission (CFTC) issued an Order of Exemption from registration as a derivative clearing organisation to ASX Clear (Futures) on 18 August 2015, as amended on 28 January 2016. Subject to the terms of the Order, ASX Clear (Futures) is permitted to clear proprietary swap positions for its U.S. clearing members (including transactions of a parent or affiliate of a U.S. clearing member).
 

 

 

 

Europe

ASX Clear (Futures) is a recognised third-country (non-EU) CCP under European Regulations. 

ASX Clear (Futures) obtained recognition as a third-country CCP by the European Securities and Markets Authority (ESMA) with effect from 27 April 2015. Recognition status permits ASX Clear (Futures) the following:

  • Provision of clearing services: CCPs established in third countries can provide clearing services in the EU if they have been granted recognition by ESMA.
  • QCCP status: Under EU law, CCPs must have QCCP status for European Banks to apply concessional risk weightings to their group’s novated exposures to recognised third-country CCPs. 
  • EU clearing obligation: Users can satisfy their clearing obligation by clearing mandated products offered by recognised third-country CCPs. 

Operating Rules

Prospective Dealers, Clients and Clearing Participants of the ASX OTC Client Clearing Service can access a comprehensive listing of ASX OTC Operating Rules and information below:

Enhanced Client Protection structures

ASX's Client Protection Model supports the Client Clearing service and creates a higher level of customer protection in two key areas:

Account Segregation - The Model introduces the Individual Client Account (ICA) alongside the Client Omnibus (or traditional 'pooled') account, offering customers a choice of clearing accounts. The ICA's structure segregates an individual customer's gross positions and associated collateral value from those of the Client Omnibus account. The ICA structure can also identify customer's specific collateral and protect excess collateral.

Account Portability - The Model affords further protection to those customers who opt for an ICA account by giving them the opportunity to transfer ('port') their positions to a named alternate clearer, if their current clearer defaults. If porting cannot occur, and ASX are required to terminate the contracts in the ICA, any remaining collateral value will be returned directly to the customer.

Interest Rates Team

Email: Rates@asx.com.au

Contact us