Corporations Regulations 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS  

PART 7.5A - REGULATION OF DERIVATIVE TRANSACTIONS AND DERIVATIVE TRADE REPOSITORIES  

Division 2 - Regulation of derivative transactions: derivative transaction rules  

Subdivision 2.1B - Phase 3 reporting entities - exemption from OTC derivative reporting requirements  

REGULATION 7.5A.73   APPLICATION OF EXEMPTIONS  

New phase 3 reporting entities

7.5A.73(1)    
For the purposes of regulations 7.5A.71 and 7.5A.72 , this regulation applies to a new phase 3 reporting entity, in relation to an OTC derivative transaction or an OTC derivative position, at all times during a period:

(a)    starting on the day the entity becomes a phase 3 reporting entity; and

(b)    ending at the end of the quarter day that next follows 2 successive disqualifying quarter days for the entity.

Example:

An entity becomes a phase 3 reporting entity on 1 November 2015. However, 31 December 2015 and 31 March 2016 are both disqualifying quarter days for the entity.

This regulation applies to the entity during a period starting on 1 November 2015 and ending at the end of 30 June 2016 (the quarter day that next follows the disqualifying quarter days on 31 December 2015 and 31 March 2016).

Continuing phase 3 reporting entities

7.5A.73(2)    
For the purposes of regulations 7.5A.71 and 7.5A.72 , this regulation applies to a continuing phase 3 reporting entity, in relation to an OTC derivative transaction or an OTC derivative position, at all times during a period:

(a)    starting on the day after the quarter day that next follows 2 successive qualifying quarter days for the entity; and

(b)    ending at the end of the quarter day that next follows 2 successive disqualifying quarter days for the entity.

Example:

An entity becomes a phase 3 reporting entity on 1 November 2015. However, 31 December 2015 and 31 March 2016 are both disqualifying quarter days for the entity, so this regulation stops applying under subregulation (1) at the end of 30 June 2016.

30 June 2016 and 30 September 2016 are qualifying quarter days for the entity. This regulation applies to the entity again during the period starting on 1 January 2017 (the day after the quarter day that next follows the qualifying quarter days) and ending as provided for by paragraph (2)(b).

7.5A.73(3)    

In this regulation:

continuing phase 3 reporting entity
means:

(a) an entity that was a phase 3 reporting entity on 30 September 2015; or

(b) a new phase 3 reporting entity for which the period mentioned in subregulation (1) has ended.

Note: For when this regulation first applies to an entity that was a phase 3 entity on 30 September 2015, see regulation 10.21.01 .

disqualifying quarter day
, for an entity, means a quarter day at the end of which the total gross notional outstanding positions held by the entity in the relevant capacity is 5 billion Australian dollars or more.

new phase 3 reporting entity
means an entity that becomes a phase 3 reporting entity on or after 1 October 2015.

qualifying quarter day
, for an entity, means a quarter day at the end of which the total gross notional outstanding positions held by the entity in the relevant capacity is less than 5 billion Australian dollars.

quarter day
(Repealed by FRLI No F2022L01689, Sch 1 [ 4] (effective 15 September 2023).)

relevant capacity
: a position is held by the entity in the relevant capacity , for the purpose of the definition of qualifying quarter day or disqualifying quarter day in this subregulation, if:

(a) the position is held by the entity otherwise than in a representative capacity, in the following circumstances:

(i) in a case in which the relevant definition is applied in relation to an OTC derivative transaction to which the entity is a party otherwise than in a representative capacity;

(ii) in a case in which the relevant definition is applied in relation to an OTC derivative held by the entity otherwise than in a representative capacity; or

(b) the position is held by the entity in a representative capacity in relation to a particular registered scheme, notified foreign passport fund, trust or CCIV, in the following circumstances:

(i) in a case in which the relevant definition is applied in relation to an OTC derivative transaction to which the entity is a party in that capacity;

(ii) in a case in which the relevant definition is applied in relation to an OTC derivative held by the entity in that capacity.