In June, as you know, the Council of Financial Regulators6 released a discussion paper setting out these issues in detail and calling for submissions from interested parties. To help focus discussion, the Council paper put forward four propositions.
In summary, these were:   that in the absence of Australian regulatory action, domestic CCP solutions may not emerge;    that where a market is of systemic importance to Australia, a move to offshore central clearing might introduce risks to the Australian financial system that do not currently exist;    that the Council agencies considered the market for Australian dollar interest rate swaps to be systemically important within Australia; and    that in light of this, the Council agencies were considering the case for a requirement that those instruments be centrally cleared, and as part of that were considering whether such clearing should take place domestically.