On 25 February 2016, the Australian Prudential Regulation Authority (APRA) published a discussion paper and a draft prudential standard setting out APRA’s proposals for implementing margin requirements and other risk mitigation standards for non-cleared OTC derivatives in Australia (the APRA Proposals). The new requirements are proposed to take effect from 1 September 2016, subject to a phase-in schedule which broadly aligns with equivalent international proposals.

This briefing paper highlights some of the key points arising out of the APRA Proposals, with comparisons to the proposals of other G-20 countries and some suggested practical steps for market participants to take.