The natural home of Australian and New Zealand OTC liquidity
We provide the ability for Banks, Funds and end-users across the globe to clear A$ and NZ$ OTC Interest Rate Derivatives 24 hours per day between Monday morning and Saturday (7:00am AEST). As of December 2017, the ASX OTC Clearing Service has cleared over A$10 trillion in OTC notional value.
ASX's OTC Clearing service is tailor made to meet the risk management needs of the Australian and New Zealand market and the highest global regulatory standards.
Australian and New Zealand focus
We have over 500 staff dedicated to business, technology, operations and management. This focus means we understand Australian and New Zealand regulation, onshore default management, collateral custody and bankruptcy treatment, as well as the deepest connections into the local markets, to take effective and efficient action.
ASX OTC Clearing is focused on delivering market-aligned best practice, including:
- 24 hour clearing between Monday 12.01am and 7:00am Saturday (AEST)
- Cross-product margin offsets between interest rate futures and OTC derivatives delivering significant initial margin reductions
- Industry approved margining model based on a historical Value at Risk (VaR) methodology
- Distribution via OTC trading platforms.
- Large range of acceptable collateral with access to centralised Collateral Management through ASX Collateral.
- Austraclear connectivity
Broad product offering
- AUD Interest Rate Swaps
- BBSW 1m vs. Fixed (10yrs)
- BBSW 3m, 6m vs. Fixed (30yrs)
- AUD Overnight Index Swaps (3yrs)
- AUD Single Currency Basis Swaps
- BBSW 1m vs. BBSW 3m (10yrs)
- BBSW 3m vs. BBSW 6m (30yrs)
- AUD BOB Swaps
- BBSW 1m vs. AONIA (10yrs)
- BBSW 3m vs. AONIA (10yrs)
- BBSW 6m vs. AONIA (10yrs)
- NZD Interest Rate Swaps
- BKBM 3m vs. Fixed (2yrs) – Extending to 15 years in February 2018
- NZD Overnight Index Swaps (NZ OIS) (2yrs)
A detailed ASX OTC Clearing trade eligibility matrix is available here.
Enhanced Client Protection structures
ASX's Client Protection Model supports the Client Clearing service and creates a higher level of customer protection in two key areas:
- Account Segregation - The Model introduces the Individual Client Account (ICA) alongside the Client Omnibus (or traditional 'pooled') account, offering customers a choice of clearing accounts. The ICA's structure segregates an individual customer's gross positions and associated collateral value from those of the Client Omnibus account. The ICA structure can also identify customer's specific collateral and protect excess collateral.
- Account Portability - The Model affords further protection to those customers who opt for an ICA account by giving them the opportunity to transfer ('port') their positions to a named alternate clearer, if their current clearer defaults. If porting cannot occur, and ASX are required to terminate the contracts in the ICA, any remaining collateral value will be returned directly to the customer.
Commodity Futures Commission
The U.S. Commodity Futures Trading Commission (CFTC) issued an Order of Exemption from registration as a derivatives clearing organisation to ASX Clear (Futures) on 18 August 2015, as amended on 28 January 2016. Subject to the terms of the Order, ASX Clear (Futures) is permitted to clear proprietary swap positions for its U.S. clearing members (including transactions of a parent or affiliate of a U.S. clearing member).
Prospective Dealers, Clients and Clearing Participants of the ASX OTC Client Clearing Service can access a comprehensive listing of ASX OTC Operating Rules and information below:
To provide prospective Clients and Clearing Participants an introduction to the ASX OTC Client Clearing Service, ASX has produced fact sheets for Client Clearing.
Dealer to Dealer Clearing
ASX currently has 8 OTC Clearing Participants that are major swap dealers in the Australian market, including ANZ, CBA, Westpac, NAB, J.P.Morgan, Citi, UBS and Deutsche Bank. For further information on becoming an ASX OTC Clearing Participant, contact ASX Business Development for further information.