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ASIC CP 387 Series

Australia’s ASIC CP 387’s Biggest Plot Twist?

Your derivatives can now “count” even when you don’t own a single share.

Say hello to the “deemed economic interest” (DEI) — the headline act of CP 387. The big idea: just holding the bought side of an equity derivative now means you’re treated as having an interest in the underlying stock. No shares required. 👀 Here’s how it breaks down: 📈 Linear derivatives (think cash-settled swaps) — easy math. You’re deemed to carry the full notional value. No wiggle room. 📊 Non-linear derivatives (like options) — a bit more nuanced. You’re deemed to carry delta × notional, calculated using a “generally accepted standard pricing model.” And that pricing model isn’t just pulling a number out of thin air — it has to juggle:

Interest rates
Dividends
Time to maturity
Underlying price
Volatility

Which is exactly why this number refuses to sit still. It moves as the inputs move. The takeaway: your derivative book isn’t a side dish anymore — it feeds straight into your substantial holding position, right alongside your share register. 👉 Next week: we dig into why that delta-driven half of the equation is trickier than it looks — in not one, but two different ways. Stay tuned.

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Artius Global:

Artius Global is a Regtech that is Simplifying Regulatory Disclosures. Our proven solutions are by practitioners for practitioners. Our Shareholding Disclosure solution is a complete automated end-to-end solution with form filling. It overcomes the complex and onerous process of complying with shareholding disclosure with ease. The solution aggregates, monitors, and generates disclosure forms covering the regimes of Substantial Shareholding, Short Selling, Sensitive Industries, and Issuer Limits across 100+ capital markets to meet mandatory regulatory requirements for financial institutions. For more information, visit ArtiusGlobal.com or request a demo.

REG-INSIGHT

Australia’s ASIC CP 387’s Biggest Plot Twist?

Your derivatives can now “count” even when you don’t own a single share.

Artius Global selected by Challenger Limited for Global Shareholder Disclosure Reporting

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