The Australian Securities and Investments Commission is backing a push by Australian banks for relief from new global derivative regulation, according to a report in the Australian Financial Review. In March, the banks wrote to the International Organisation of Securities Commissions warning that the country's banking system would be "severely impacted" by proposed new derivative rules. They said the new regulation would add hundreds of millions of dollars to their funding costs and may lead to higher interest rates. Under the rule, banks would have to pay a margin of six per cent on their cross-currency swaps. The AFR report quoted an ASIC spokesman, who said the regulator "recognised the concerns" of the local industry and would be raising the issue later this month.