Australian regulators suggest clearing exemption for foreign exchange

Financial regulators in Australia have recommended exempting foreign exchange swaps and forwards from any impending central counterparty clearing obligations in a discussion paper published by the Reserve Bank of Australia (RBA) last week.

In response to international reform of the over-the-counter derivatives market, regulators in Australia have considered the logistics and challenges of central clearing in a 49-page discussion paper.

The most-actively traded contracts in Australia's domestic