Any clearing house that seeks to provide clearing services to U.S. persons with respect to swaps must register with the U.S. Commodity Futures Trading Commission (the "Commission") as a Derivatives Clearing Organization ("DCO") before it can begin providing such services.
The Commission issued an Order of Exemption from registration as a DCO to ASX Clear (Futures) Pty Limited on 18 August 2015. An Amended Order of Exemption to reflect an additional reporting requirement was issued on 28 January 2016.
The Order of Exemption was the first issued by the Commission based on the authority under Section 5b(h) of the Commodity Exchange Act. The provision permits the Commission to exempt a clearing organisation from DCO registration for the clearing of swaps to the extent that the Commission determines that such clearing organisation is subject to comparable, comprehensive supervision by appropriate government authorities in the clearing organisation’s home country.
Subject to the terms of the Order, ASX Clear (Futures) Pty Limited is permitted to clear proprietary swap positions including but not limited to interest rate swaps denominated in U.S dollars, Euros, Japanese yen, British pounds, Australian dollars and New Zealand dollars for its U.S. clearing members (including transactions of a parent or affiliate of a U.S. clearing member).