New OTC reporting rules: what do property fund managers need to know now?
Property fund managers often enter into International Swaps and Derivatives Association (ISDA) Master Agreements with their financier to manage risks related to currency and interest rates. The ISDA Master Agreement sets out the terms and conditions governing over-the-counter (OTC) derivative transactions between two parties.
Property fund managers and others entering ISDA Master Agreements, and other OTC derivatives, should carefully consider whether the transactions executed under these agreements need to be reported under the OTC reporting rules. It is critical to stay up to date with the OTC reporting rules to avoid unintentional non-compliance, as changes to the rules can expand or modify reporting obligations.
- Property fund managers and others entering ISDA Master Agreements should carefully consider whether transactions executed under these agreements need to be reported under the OTC reporting rules.
- The new ASIC Derivative Transaction Rules (Reporting) 2024 (2024 Reporting Rules) include changes to the definition of exchange-traded derivatives (ETDs), foreign entity reporting, and alternative reporting.
- AISC announced it will take a ‘measured’ approach to compliance until March 2025 for entities who make reasonable efforts to comply with the 2024 Reporting Rules.
- Consider your OTC reporting obligations under the 2024 Reporting Rules and any impact the changes to the rules will have on your business.
The new Reporting Rules introduced on 21 October this year replaced the ASIC Derivative Transaction Rules (Reporting) 2022 (2022 Reporting Rules). The changes to the reporting scheme sought to:
- align with international standards;
- tie in transitional provisions and exemptions; and
- update reporting standards to ensure they remain fit for purpose.
In a media statement earlier this month, AISC announced it would take a ‘measured’ approach to compliance until March 2025 for entities captured by the scheme who make reasonable efforts to comply with the 2024 Reporting Rules. ASIC has also updated its Regulatory Guide 251: Derivative transaction report to help reporting entities comply with the new 2024 Reporting Rules.
A comparison between the 2022 Reporting Rules and the 2024 Reporting Rules is available on ASIC’s website. Further changes to the reporting scheme will take effect from 20 October 2025 and a comparison between the 2024 Reporting Rules now in effect and the 2024 Reporting Rules as at 20 October 2025 is available here.
Some of the key changes to the rules are set out below.
Topic | New reporting rules |
|---|---|
| ETDs | A generic definition of ETDs has been inserted to permanently exclude ETDs from the reporting regime. Nevertheless, ASIC will have the power to determine whether a particular derivative is an ETD or OTC derivative. In effect now. |
| Foreign entity reporting | Foreign reporting entities (apart from foreign entities that are clearing and settlement (CS) facility licensees) will now have to report all OTC derivative transactions which are ‘nexus derivatives’. Commencing 20 October 2025. |
| Alternative reporting | The alternative reporting method for foreign reporting entities in rule 2.2.1(3) of the 2024 Reporting Rules will be removed. As a result, foreign reporting entities will be required to report derivative transaction information to a licensed repository. Commencing 20 October 2025. |
You should consider your OTC reporting obligations under the 2024 Reporting Rules and any impact the changes to the rules will have on your business. If you have any questions regarding your obligations, then please reach out to Emma Donaghue, Kate Dart or a member of the HW Funds team.
