ASIC Signs Memorandum of Understanding as OTC Market Reforms Loom

The Australian Securities and Investments Commission (ASIC) has signed a historic Memorandum of Understanding with Singapore's financial regulator, the Monetary Authority of Singapore (MAS). The agreement allows trade repositories licensed in one jurisdiction to provide relevant data to the authority in the other jurisdiction. However, the signed agreement is not legally binding and does not supersede any domestic laws.

Today's announcement (Wednesday) follows yesterday's news that ASIC has granted a derivative trade repository (ADTR) license to DTCC Data Repository (Singapore) Pte Ltd (DDRS). The ADTR license is the first of its kind granted by ASIC, and is a key step in ASIC's implementation of mandatory trade reporting requirements for over-the-counter (OTC) derivatives.

ASIC Commissioner Cathie Armour said, "The licensing of DDRS represents a milestone in Australia's implementation of our Group of Twenty (G20) OTC derivatives commitments and ensures that Australian businesses subject to 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 can report to a foreign trade repository which is licensed and supervised by ASIC."

The Memorandum of Understanding between Australia and Singapore is one of a number already signed by ASIC, as it is trying to enforce and secure compliance despite varying legislation and scope of Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term between the signing authorities.

In a joint statement, ASIC Chairman, Greg Medcraft and MAS Deputy Managing Director, Ong Chong Tee, said the signing of the MOU between ASIC and the MAS is a "world first for this type of arrangement and embodies the ongoing close co-operation between ASIC and MAS on financial market issues, including the implementation of the Group of Twenty (G20) over-the-counter (OTC) derivatives reforms."

Mr. Medcraft added, "ASIC is committed to ensuring these important reforms are implemented in a way that minimizes cost to Australian business and promotes the role of Australia as a financial center, by making use of international infrastructures where possible."