An important consideration is how any international services would be adapted to the Australian market and time zone, including in relation to the provision of operational support, valuation methodology, margin collection and collateral eligibility criteria. The tax treatment of payments to an overseas-based central counterparty has also been identified as a potential issue.
Ultimately, any central counterparty offering services to Australian-domiciled institutions will need to meet the needs of the Australian market place, the requirements for cross-border regulatory influence articulated by the Council, and possible future requirements that might be set out in derivative transaction rules in support of any mandatory clearing obligations.