Media Release Release of Guidance for the Australian Clearing and Settlement Facility Resolution Regime

Following consultation with industry, the Reserve Bank of Australia (RBA) has published its Guidance on the Australian Clearing and Settlement (CS) Facility Resolution Regime. The RBA has also published a Response to Consultation which summarises the feedback received from respondents and sets out how the RBA has addressed it in the Guidance.

In June 2025, in response to stakeholders’ requests, the RBA released a consultation paper seeking views on its draft Guidance on the Australian CS Facility Resolution Regime (the Guidance). The Guidance is intended to provide further information about when and how the RBA would generally expect to use its resolution powers over Australian CS facilities. It aims to assist CS facility participants and other stakeholders to understand the RBA’s general approach to resolution and the potential impacts on them if the RBA decides to use a resolution power. The Guidance does not have the force of law, nor does it pre-commit or otherwise bind the RBA to, or prevent the RBA from taking, a particular course of action. If there is any inconsistency between the Guidance and the legislation, the legislation prevails.

Background

Clearing and settlement facilities provide post-trade clearing and settlement services for transactions that occur in financial markets. In Australia, the Australian Securities and Investments Commission (ASIC) has primary responsibility for licensing CS facilities and for granting exemptions from the requirement to hold a CS facility licence. These facilities are co-regulated by ASIC and the RBA.

In September 2024, the Australian Parliament passed the Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Act 2024. This amended the Corporations Act 2001 to provide the RBA with crisis resolution powers¹ with respect to domestically incorporated CS facilities². These powers enable the RBA to manage or respond to a threat posed to the continuity of critical CS facility services or the stability of the financial system in Australia arising in relation to a domestic CS facility licensee.