The Australian Government will press ahead with a framework for regulating over-the-court derivatives but will not - yet - mandate central clearing.Treasury released an exposure draft of legislation yesterday that will establish a framework to further regulate derivatives.The draft law will not spell out that framework, but will give the Minister for Financial Services the power to decide what mandatory obligations should apply to certain classes of over-the-counter derivatives.Even then it will be up to the Australian Securities and Investments Commission to determine what rules will apply.Precisely what those rules might be, and whether there will be any rules at all, will be subject to more consultation.One such consultation exercise concluded that there was no need for any more rules.In January the Corporations and Markets Advisory Committee advised the Government that both the on-exchange and over-the-counter derivatives markets were appropriately regulated.The CAMAC report also advised that the current definition of derivatives in the Corporations Act was both suitable and adequate.The Government, however, is seeking to develop a framework that will adhere to the principles for derivatives' regulation being championed by many global regulators and endorsed, at a political level, through the Group of 20.Treasury said it had received 37 submissions on a consultation paper published earlier this year, and noted divergent views on one central controversy: whether or not to mandate central clearing.