In the area of resolution, a number of steps have been taken in recent years, including a strengthening in APRA’s crisis management powers in 2008 and 2010. So far as derivatives markets are concerned, legislation was passed in Australia in December 2012 to help meet emerging international standards.
Given uncertainties around both the final shape of key regimes internationally, and the broader market and economic effects of regulation in this area, the final legislative framework contains considerable flexibility. In particular, the legislation does not directly introduce any trade reporting, central clearing or trade execution obligations for OTC derivatives transactions.