In what could be described as the most significant development in Australian derivatives since the first Australian interest rate swap in the 1980’s, the Australian Securities Exchange cleared Australia’s first interest rate swap late last week.
The creation of the Australian OTC derivatives clearing facility is a significant milestone for the ASX, and a key plank of Australia’s commitment to the G20 reform of the OTC derivatives market. The new clearing house will play a fundamental role in the new Australian financial market landscape, and is to perform a key role in Australia’s financial market infrastructure.
Scott Farrell, leader of the KWM Derivatives Team, said: “We are proud and delighted to have worked as the ASX’s legal adviser on this landmark development. On behalf of my team and my firm, I would like to congratulate the ASX on ensuring Australia remains at the forefront of financial markets infrastructure in the region. We are looking forward to continuing to assist the ASX with the next stage, as the facility evolves from dealer-to-dealer clearing to clearing with clients”.
The KWM team advised the ASX on all legal and regulatory aspects its new legal framework, including designing the structure for Australian and regional market needs, working with market participants and regional industry bodies, liaising with regulators as well as assisting with new facilitating legislation.
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