Regulatory Developments

Code of Practice for clearing and settlement of cash equities in Australia

Clearing and settlement of cash equities information and details on the consultation process and upcoming consultation meetings on the draft Code of Practice are available here.

 

Recent Regulatory Developments

The International Committee on Payment and Settlement Systems (CPSS) and the Technical Committee of the International Organization of Securities Commissions (IOSCO) are responsible for the establishment of the broad international standards for the regulation and conduct of clearing and settlement facilities. These are set out in the CPSS-IOSCO Principles for Financial Market Infrastructures, which were released in April 2012.

CPSS-IOSCO Principles for Financial Market Infrastructures

In December 2012, the Reserve Bank of Australia published new Financial Stability Standards which will apply to central counterparties (CCPs) and securities settlement facilities. These standards aim to ensure that licensed clearing and settlement facilities conduct their affairs in a way that promotes the overall stability of the Australian financial system and, as such, incorporate the CPSS-IOSCO international standards.

RBA - New Financial Stability Standards: Final Standards and Regulation Impact Statement

As part of ASX’s CCPs’ obligations as a clearing and settlement facility licencees, both ASX Clear and ASX Clear (Futures) must, effective 29th March 2013, comply with these new Standards.

Please refer to FSS & CPSS IOSCO Principles to see ASX Group’s response to the CPSS-IOSCO Disclosure Framework for Financial Market Infrastructures, as required under the FSS.

 

ASX Consultation

In order to ensure ongoing compliance with the new standards, ASX’s CCPs are currently engaged in a programme of market consultation where aspects of the new regulatory requirements are likely to have significant market impact.

On 25th October 2012, ASX released a Market Discussion Document on Derivatives Account Segregation and Portability.

Derivatives Account Segregation and Portability Consultation Paper

Public responses to this paper may be found here.

Further consultation documents on these topics will be published in the near future.