ASIC’s New Reporting Standard Takes Effect on July 1

Forex and CFD businesses will have to adhere to new rules starting on July 1, 2019 in accordance with the Australian Securities and Investments Commission (ASIC).

New reporting comes into effect

Instead of using end-of-day snapshot method for standard contracts for difference (CFDs), margin foreign exchange (forex) and equity-over-the-counter (OTC) derivatives, companies will now be required to report using the life cycle method. Why does this matter? Now, the changes are to help improve the market’s transparency, detect and prevent market abuse while promoting financial stability. Moreover… It will also be useful in monitoring misconduct and abuse in certain derivatives market. With the regulator’s focus on a strong, fair and efficient financial system, the ASIC believes that the changes will help avoid instances of risky conduct and protect investors against losses.

Reminder about the changes to firms

Today, ASIC covered highlights from their Market Integrity Report which was compiled during the second half of 2018. In addition to that… It also has reminders on rules and future regulations that were recently introduced. In a reminder to firms about the changes to CFD and margin FX transactions reporting by ASIC, they stressed the importance of the entity identifier requirement for the OTC derivative transaction reporting rules. Which are:
  • Legal Entity Identifier (LEI)
  • If there isn’t available LEI or interim entity identifier for the entity, then an international business entity identifier issued by Avox Limited (AVID).
  • In the case that there is no AVID is available, a Business Identifier Code (BIC).
According to Quinn Perrott, co-CEO at Traction Fintech, firms will now be mandated to report the entry into and the exit of all OTC derivative which will include any modifications made to transactions from the previous business day which is intraday reporting. We can’t emphasize enough… There is a necessity of trading with a trusted and authorized dealer who is regulated by ASIC for your protection. Leading global forex/CFDs brokers like Plus500, eToro and Pepperstone are authorized by ASIC adhering to the strict conditions imposed and deliver the highest standards to their clients. And you know what?
  • Plus500 is regulated by various regulators, FCA (UK), ASIC (Australia), CySEC (Cyprus).
  • eToro the leading social networking provider is regulated by CySEC (Cyprus), FCA (UK) and ASIC.
  • While Pepperstone whose head office is in Melbourne Australia is regulated by both ASIC (Australia) and the FCA (UK).

Bottom Line?

The number one concern amongst traders is safety, honesty, and reliability of their brokers where they can feel safe to trade without the fear of being ripped off. The best part? Today, you can safely get on with the business of trading and investing without fear at any of the top brokers: Plus500, eToro and Pepperstone. They have you covered!
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