APRA's prudential standard CPS 226 applies to authorised deposit-taking institutions (ADIs) and other banks, general insurers, life companies, and RSE licensees, among others, and sets margin requirements for non-centrally cleared OTC derivatives1.

CPS 226 is made under section 11AF of the Banking Act 1959, section 32 of the Insurance Act 1973, section 230A of the Life Insurance Act 1995 and section 34C of the Superannuation Industry (Supervision) Act 1993.

APRA is a separate regulator from ASIC, which sets the reporting and clearing obligations. For the same OTC derivative, ASIC covers reporting and clearing, and APRA covers margin.

Notes

  1. APRA "Prudential Standard CPS 226", the "Authority" and "Application" sections (Prudential Handbook version). ↩