In the United States, the Dodd-Frank regulations on OTC clearing are likely to start taking effect around the second quarter of next year, and in Europe the corresponding regulations under EMIR5 are likely to take effect by around 2013. Even before then, market behaviour, and hence the environment for the Australian banks, will be influenced by the anticipation of those requirements.
In broad outline, then, these are some of the key considerations that will need to be taken into account in determining the way forward in Australia. This brings me to my third question: where does the policy process in Australia now stand?