Review of Settlement Practices for Australian Equities 5. Possible Modifications to Existing Arrangements

As part of the Review, the Bank has considered a number of possible modifications to settlement arrangements that could potentially strengthen the system. These include changes to:

  • the basic settlement model, including settling non-novated and novated trades separately, and moving to trade-by-trade settlement;
  • the functioning of the existing batch settlement model;
  • the arrangements for dealing with trades that fail to settle, including the fees that apply; and
  • the transparency and disclosure of securities lending.