ASX clearing may go local The Australian Securities Exchange is trying to open its proposed clearing service for over-the-counter derivatives to local fund managers and investors. If the plan goes ahead, it means local investors' collateral will be regulated under Australian law, rather than some other jurisdiction, if a participant to an OTC contract defaults. The plan has the backing of a large group of fund managers and state government treasuries, including the Future Fund, NSW Treasury Corporation, AMP Capital and Colonial First State Global Asset Management. Collectively the group manages about $750 billion, representing nearly 40 per cent of total Australian investor funds under management. David Dixon, chief investment officer at Colonial First State Global Asset Management, said the idea was a good one. "We believe that Australian clients should have a choice of being able to use an Australian clearing service where their collateral is protected and governed by the Australian regulatory authority," he said. After the GFC there has been a move around the world to reduce risk in the global financial system.