Eligible Counterparties
To be eligible to participate in the Reserve Bank’s open market operations, counterparties must be members of RITS, subject to an appropriate level of regulation, and able to ensure efficient and timely settlement of transactions with membership of the Austraclear system.
Membership of RITS currently requires counterparties to be incorporated or registered in and carrying on business in the Commonwealth of Australia.
An appropriate level of regulation is as determined by the Reserve Bank. In general, the Bank will require the counterparty to be:
- an Authorised Deposit-Taking Institution (ADI), regulated by APRA; or
- the holder of an Australian financial services licence and regulated by ASIC; or
- subject to an exemption from the requirement to hold an Australian financial services licence, as determined by ASIC and subject to any conditions specified by ASIC in that exemption; or
- where established under State or Territory legislation, subject to adequate controls as deemed appropriate by the Reserve Bank.
Any difficulties encountered by the Reserve Bank in settling transactions with a counterparty may lead to that counterparty’s eligibility status being revoked.
