The Australian Securities Exchange (ASX) has said that eight key dealers representing approximately 90% market share of the country’s A$ 15 trillion OTC derivatives business are now clearing trades using ASX’s OTC derivatives clearing service.
ASX’s OTC derivatives clearing service became available in July 2013. ASX announced this week that the participants now include Australia and New Zealand Banking Group, Commonwealth Bank of Australia, Citi, Deutsche Bank, JP Morgan, National Australia Bank, UBS and Westpac Banking Corporation. They now possess the status of ‘Foundation Customers’, having all successfully applied to the clearing house to become OTC clearing participants.
The ASX OTC Derivatives Clearing Service aligns with Australia’s G20 commitments on central counterparty clearing. Collateral is kept onshore and is subject to Australian laws and regulations.
ASX said that its next priority is to focus on building liquidity, increasing the product offering, and extending service to its end-clients, which it plans to complete by April 2014.