Book Description
Derivatives are listed and traded on financial markets (like the Sydney Futures Exchange), or they are traded person to person over-the-counter (OTC). Due to the world financial crisis of 2007/2008, derivatives have become household words, with calls for improved OTC regulation.There is no direct Australian regulation of OTC financial products. Instead, OTC derivatives are regulated indirectly by Australia's quot;three peaksquot; system of market regulation by the Australian Securities and Investments Commission (ASIC), the Australian Prudential Regulation Authority (APRA) and the Australian Competition and Consumer Commission (ACCC). In addition, there is industry self-regulation through the standards of trade associations like the Australian Financial Markets Association (AFMA) and ISDA. This regulation is underpinned with provisions for market misconduct at common law and under the relevant legislation. Data from the Australian Treasury confirms that Australian financial markets and financial products including OTCs are well-regulated, and that they may be less affected by the financial crisis than equivalent markets in some other countries.