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RESERVE BANK OF AUSTRALIA

Clearing and Settlement Facilities

Standards

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Clearing and settlement (CS) facilities are systems that clear and settle transactions in securities such as bonds and equities, and in derivative instruments such as options and futures. The Reserve Bank of Australia has formal responsibility for ensuring that licensed CS facilities conduct their affairs in a way that is consistent with financial system stability.

Current Standards

The Bank determined Financial Stability Standards for licensed CS facilities, in accordance with subsection 827D(1) of the Corporations Act 2001 on 10 December 2012. These came into force on 29 March 2013, in accordance with subsection 827D(5) of the Corporations Act 2001[1]. There are two sets of standards that apply to different types of licensed CS facility:

  • the Financial Stability Standards for Central Counterparties (CCP Standards) and
  • the Financial Stability Standards for Securities Settlement Facilities (SSF Standards).

The current standards replace previous standards for clearing and settlement facilities determined in 2003, and varied in 2005 and 2009.

Financial Stability Standards
+ In interpreting CCP Standards 3.5, 4.8, 7.9, 14.3 and 14.5, and SSF Standards 3.5, 4.5, 6.9, 12.3 and 12.5, the Bank will apply the guidance in the report, Recovery of Financial Market Infrastructures, issued by CPMI and IOSCO in October 2014. This report is available at: <http://www.bis.org/cpmi/publ/d121.pdf>.
^ See supplementary interpretation for domestically licensed CCPs that provide services to clearing members that are either established in the EU or subject to EU bank capital regulations.
* For details of standards that came into force on 31 March 2014, see endnote.
Documents Commencement Date Date of Gazettal Media Release
Central Counterparties
Standards and Guidance+ ^ 29 Mar 2013* 10 Dec 2012
Gazettal Notice [PDF 75K]
2012-37
Revocation of Standards 7.3, 7.9, 13.1, 13.2 and 13.3 (transitional relief)   22 Feb 2013
Gazettal Notice [PDF 80K]
 
Determination of Standards 7.3, 7.9, 13.1, 13.2 and 13.3 (transitional relief) 31 Mar 2014 22 Feb 2013
Gazettal Notice [PDF 80K]
 
Securities Settlement Facilities
Standards and Guidance 29 Mar 2013* 10 Dec 2012
Gazettal Notice [PDF 75K]
2012-37

 

Assessing the Sufficient Equivalence of an Overseas Regulatory Regime

The Reserve Bank's Approach to Assessing Clearing and Settlement Facility Licensees

Principles for Financial Market Infrastructures
BIS Committee on Payment and Settlement Systems and International Organization of Securities Commissions
April 2012


Endnote
  1. The following standards came into force on 31 March 2014: CCP Standards 3.5, 4.8, 7.3, 7.9, 13.1, 13.2, 13.3, 14.3 and 16.11; and SSF Standards 3.5, 4.5, 12.3 and 14.11.