Regulation Impact Statement Updates

Official website for publishing regulatory impact analysis information for regulatory decisions announced by the Australian Government, COAG and COAG Councils.

Removal of impediments to margining

Aust Gov
31st May 2016

Regulation Impact Statement – Department of the Treasury

On 16 March 2016, the Government introduced the Financial System Legislation Amendment (Resilience and Collateral Protection) Bill 2016. The bill amends the Payment Systems and Netting Act 1998 to enable financial institutions in Australia to comply with internationally-agreed margining requirements when dealing in over-the-counter derivatives. The bill also provides legal certainty about the operation of Australian law in relation to termination rights (close out rights) under certain financial market transactions and approved Real Time Gross Settlement systems, approved netting arrangements and netting markets (netting market contracts) in all market conditions.

A Regulation Impact Statement (RIS) was prepared and certified by the Treasury, and was assessed as compliant and consistent with best practice by the Office of Best Practice Regulation (OBPR).

The RIS estimates the measures will reduce regulatory costs by $3.9 million per annum. The OBPR has agreed to the regulatory cost estimate.

Back to all Updates