Guidance for the Australian Clearing and Settlement Facility Resolution Regime June 2025

Clearing and settlement (CS) facilities provide post-trade clearing and settlement services for transactions that occur in financial markets. In Australia, the Australian Securities and Investment 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 Reserve Bank of Australia (RBA).

In September 2024, the Australian Parliament passed the Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Act 2024 (the Amending Act). This amended the Corporations Act 2001 to provide the RBA with crisis resolution powers^[1] (resolution powers) with respect to domestically incorporated CS facilities.^[2] 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.

During the exposure period for the Amending Act, several stakeholders sought more information as to the circumstances in which resolution could occur, and how resolution powers and tools could be used.

In response to stakeholders' requests, the RBA has developed draft guidance on the Australian CS Facility Resolution Regime (the Guidance).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.

The RBA is seeking views from interested parties on the Guidance before it is finalised. The Guidance is provided in Appendix A.

Interested parties are invited to make submissions by email or post by 11 August 2025. All correspondence should be sent to:

cssubmissions@rba.gov.au
or
Head of Payments Policy Department, Reserve Bank of Australia
GPO Box 3947, Sydney NSW 2001

For further information on making a submission, please refer to the RBA Submission Guidelines in Appendix B. Those making submissions may request a meeting to discuss their views with RBA staff and the RBA will endeavour to accommodate such requests. The RBA may also contact respondents if it wishes to discuss any aspect of their submission.