The Federal Government has released the final report of the Council of Financial Regulators (CFR), outlining the proposed next steps towards fully implementing Australia's G20 commitment to improve risk management and reduce systemic risk in the 'over-the-counter' (OTC) markets for financial derivative products.

 

The Government has also published a consultation paper seeking  stakeholder input over the coming months on legislative amendments of the Corporations Act to build a framework for complying with G20 obligations in the area.

 

"The global financial crisis highlighted the massive build-up of systemic risk in some advanced countries through the rapid growth of highly complex, leveraged derivative products which were traded outside appropriately regulated and transparent markets. In September 2009 the G20 endorsed a global transition of derivatives products," Parliamentary Secretary to the Treasurer Bernie Ripoll said in a statement.

 

"The Council has engaged extensively with domestic market participants since 2009 to identify the most appropriate policy settings for Australia in meeting our G20 commitments, including the release of a discussion paper in June 2011."

 

A copy of the Council's recommendations, the consultation paper and details on consultation are available on the Treasury website.