ASIC has been increasing supervision over the Australian Derivatives market over the past years. In 2013, they introduced the ASIC Derivative Transaction (Reporting) Rules (F2015C00262), which require counterparties to OTC derivative transactions to identify the various parties (except individuals) to the transaction. This can be achieved via several mechanisms, of which an LEI code is the preferred identifier. The ASIC Corporations Instrument 2015/884 Derivative Transaction Reporting Exemption extended relief from these requirements to the relevant parties. From 1 April 2019, parties are required to comply with these reporting rules.
ASIC also introduced the ASIC Derivative Transaction Rules (Clearing) 2015 (F2015L01960) that introduced a clearing mandate for parties transacting in OTC interest rate derivatives in various currencies, including Australian and US dollars, Euros, British Pounds and Japanese Yen. This mandate affects Australian and foreign financial institutions that meet the clearing threshold requirements.
APRA also requests LEIs from authorised deposit-taking institutions with regard to their largest exposures as well as any exposures that are equal to or greater than 10 of their Tier 1 Capital. Government-related entities are requests to provide LEIs for their largest exposures and all other exposures equal to or greater than 5% of their Tier 1 Capital. The requirements don’t go as far as mandating the use of LEIs, however, they simply instruct that they should be provided if the counterparty has an LEI.
Australian entities transacting in the European market were required to obtain an LEI in 2018 in order to continue operating within that jurisdiction. Apply for LEI number to your company.