Survey of the OTC Derivatives Market in Australia – May 2009 1. Introduction

One of the recommendations in the Financial Stability Forum's (FSF's) April 2008 report was to ensure a sound settlement, legal and operational infrastructure for the OTC derivatives market.

To support an assessment of the conduct of business in the Australian over-the-counter (OTC) derivatives market against the FSF recommendations, the three financial authorities – the Australian Prudential Regulation Authority (APRA), the Australian Securities and Investment Commission (ASIC), and the Reserve Bank of Australia – recently surveyed a range of market participants. A particular focus of the Survey was risk management and post-trade processing practices, complementing regular surveys of trading volumes and outstanding positions published by the Australian Financial Markets Association (AFMA) and the Bank for International Settlements (BIS).

This report details some of the key findings of the Survey and concludes with the authorities' assessment of current practices.