LEGAL FRAMEWORK

The legal framework of RITS is contractual, based on the RITS Regulations (PDF 403K) and Conditions of Operation (PDF 179K) and associated legal agreements. The Regulations set out the rules for the operation of RITS and the rights and obligations of Members, the Member's Bank and the RBA. More information is available in the RITS Regulations and Conditions of Operation Information Paper (PDF 91K). Reciprocal Purchase Transactions and RBA Repos are governed by TBMA/ISMA Global Master Repurchase Agreement (2000), as amended by the RITS Regulations.

Standard agreements are executed between the Member, the Member's bank and the RBA to bind each party to the Regulations. RITS Members that hold an ESA enter into two standard agreements with the RBA:

• The Membership Agreement (PDF 316K) binds the Member, the Member’s Bank and the (RBA) to the RITS Regulations; and
• The Participating Bank Facilities Agreement (PDF 370K) relates to the RBA as Participating Bank for interbank ESA transactions across the Member’s Exchange Settlement Cash Account (ESCA) within RITS and nominates the ESA as the external bank account to which the RBA will, each day, post the net movement in the ESCA. This agreement stipulates that ESAs and ESCAs may not go into debit.

A supplementary Membership Agreement is executed where an ESA is subject to special conditions. This includes Banks that have been approved by the RBA and the Australian Prudential Regulation Authority (APRA) to make their RTGS transactions through an agent, rather than directly through their own ESA.

Members of RITS that do not have an ESA are called Non-Transaction Members. These Members belong to RITS for the purpose of being a Batch Administrator or being an eligible counterparty of the RBA in its domestic market operations. These Members enter into a Membership Agreement (Non-Transaction Member) (PDF 237K) with the RBA. Members who are approved Batch Administrators also enter into a Batch Administrator Agreement (PDF 310K).

All Members are required to provide the RBA with an up-to-date list of RITS Authorised Signatories. This list contains the names and specimen signatures of the persons authorised to sign in the name and on behalf of the Member. When notifying the RBA of their Authorised Signatories, Members must also complete and attach an Authorised Signatories Cover Sheet (PDF 78K). Terms used in this cover sheet are explained in the Guidance Notes (PDF 24K).