REVIEW OF SETTLEMENT PRACTICES FOR AUSTRALIAN EQUITIES – MAY 2008

Contents

Executive Summary

Introduction

Background

The Events of 29 and 30 January

Issues Arising from these Events

Possible Modifications to Existing Arrangements

The settlement model

Improving the functioning of the existing batch settlement model

The settlement fails regime

Transparency and disclosure of securities lending

Conclusion

Attachment 1: Overview of the Australian Equities Securities Lending Market

Attachment 2: Clearing and Settlement Arrangements for ASX Trades

© Reserve Bank of Australia 2008. All rights reserved.

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ISBN 978-0-9804751-3-5 (ONLINE)