Clearing and Settlement of Cash Equities in Australia

Access

How to become an ASX participant

The ASX Customer Management function is the central point of contact for any enquiries relating to participation, including new or existing participants. The Customer Management team can be contacted on +61 2 9227 0787 or participants@asx.com.au.

The Customer Management team facilitates the admission process by liaising with relevant internal and external stakeholders to ensure all obligations under the ASX Operating Rules are satisfied.

The following participant options are available: 


 

Summary of the admission process

The admission process is non-discriminatory and will only proceed once all rules and conditions have been satisfied under ASX’s licence as a Market Operator. The following is a high-level overview of this admission process.

Participant Admission Process
 

  1. Potential applicants should review ASX’s Guide to Becoming a Participant and discuss the participant options with the ASX Customer Management team. 
  2. Potential applicants will need to decide which participant type is appropriate for their business and decide their preferred access model. 
  3. Applicants should then prepare and submit an ASX Group Participant Application Form (the Support Guide provides guidance to applicants). 
  4. Applicants will need to liaise with ASX (and ASIC) throughout the application assessment process to ensure their ability to meet the obligations under the rules upon admission. Trading Participants are supervised under ASIC’s Market Integrity Rules (MIRs) upon admission. As such, participants should ensure awareness of their obligations under the MIRs.
  5. Applicants will be admitted and be in a position to commence operations as an ASX participant.

The timeline for admission as a participant is dependent on many factors including participant type, access model, risk management and regulatory clearance (ASIC, APRA, RBA). The applicant’s own readiness is a key factor in determining the admission timeframe.

The ASX Customer Management team will manage your needs and assist you in lodging a participant application.

Factors for participants to consider when applying

  • Regulatory obligations – AFSL requirements, corporate governance, ASX/ASIC Operating Rules.
  • Technical provisioning – network connectivity, infrastructure procurement, system configuration, testing and training requirements. 
  • Compliance and risk management obligations – development and implementation of policies and procedures to be reviewed and approved by ASX.  
  • Third-party arrangements – whether front, middle or back-office will be supported by a third-party and, if so, whether arrangements and agreements are in place.

Application fees and annual fees vary according to the participant type. However, a high level summary of these fees is provided below.  

 

   ASX (Equities)
 ASX ASX Clear  ASX Settlement 
Application fee  $100,000  $200,000  $10,000 
Annual fee  $2,500 $7,500  $5,000 

 

The operational costs - transactions, market information and infrastructure - can be found in the relevant Fee Schedules.

Once admitted as an ASX participant, the ASX Customer Management team will undertake a formal handover to your dedicated ASX Account Manager and Compliance Adviser to assist you with any queries.

To amend your participation at any time in the future, please contact the ASX Customer Management team.

Should you have any serious concerns please contact Danielle Henderson, Head of Relationship Management for ASX, on +61 2 9227 0535 or danielle.henderson@asx.com.au.

Services for Approved Market Operators

Trade Acceptance Service

A trade execution venue for ASX-quoted securities can use ASX’s Trade Acceptance Service (TAS) to put in place the clearing and settlement arrangements it needs to obtain an Australian market licence. ASIC is responsible for the granting of Australian market licences.

The TAS provides non-discriminatory access to clearing and settlement arrangements for Approved Market Operators (AMOs). AMOs are typically licensed market operators, such as Chi-X.

The TAS enables trades in CHESS-eligible ASX-listed or quoted securities executed on any Australian licensed trading platform to be cleared and settled by ASX Clear and ASX Settlement in an identical fashion to trades executed on ASX’s own cash equity market.

Standard access is currently provided to Chi-X Australia under the TAS.

If you have an interest in being provided with the TAS, please contact Danielle Henderson, Head of Relationship Management for ASX, on +61 2 9227 0535 or danielle.henderson@asx.com.au.

Contractual framework and service fees

The TAS is made available to AMOs in accordance with a published set of contractual terms of service, which include fees for the TAS, an application form, operational and technical standards, and an information handling standard.

An initial application fee of $10,000 (excluding GST) and an annual service fee based on the AMO's nominated term of service will apply to the TAS. The TAS is available with pricing options for one, three or five-year terms.

Services for Approved Listing Market Operators

Settlement Facilitation Service

ASX Settlement provides settlement arrangements for approved listing venues (Approved Listing Market Operators or ALMOs) in respect of CHESS-eligible financial products listed on the markets of those ALMOs. There are two options for the settlement arrangements:

  1. A Transfer Facilitation Service where CHESS-eligible ALMO-listed financial products can be transferred in real-time by ASX Settlement participants through CHESS. Payment is handled bilaterally by participants outside of CHESS or 
  2. A DvP Facilitation Service where CHESS-eligible ALMO-listed financial products can be settled on a delivery versus payment (DvP) basis by ASX Settlement participants through the CHESS settlement batch.

ASX Settlement has also put in place arrangements for ALMO-listed issuers to use the ASX Primary Market Facility, which enables them to use DvP settlement for certain capital raisings.

The following listing market operators have been approved under the ASX Settlement Operating Rules to use the Transfer Facilitation Service, the DvP Facilitation Service and the ASX Primary Market Facility:

  1. Asia Pacific Exchange Limited (APX)
  2. National Stock Exchange of Australia Limited (NSX)
  3. SIM Venture Securities Exchange Limited (SIM).

If you are interested in being provided with settlement arrangements as a listing market operator, please contact Karen Webb, ASX’s Manager, Settlement Services, on +61 2 9227 0445 or karen.webb@asx.com.au.

Contractual framework and service fees

ASX Settlement makes the Transfer Facilitation Service and the DvP Facilitation Service available to ALMOs on a fair and non-discriminatory basis under a Settlement Facilitation Service Agreement. The terms and conditions of these services are included in the standard form Settlement Facilitation Service Agreement.

An ALMO that seeks approval under the ASX Settlement Operating Rules to acquire either service must meet minimum technical and operational standards. Those standards are set out in section 4.1A of the ASX Settlement Operating Rules.

An initial application fee, annual fees and other fees apply to each service. An ALMO which takes up the DvP Facilitation Service will inherit the functionality of the Transfer Facilitation Service (ie the submission of demand-transfer settlement instructions by ASX Settlement participants in CHESS). Fees are also payable by the issuers of CHESS-eligible financial products for the set-up and maintenance of securities and sub-registers in CHESS, together with other fees that are equivalent to current CHESS issuer fees.

Schedule 4 of the standard form Settlement Facilitation Service Agreement sets out the fees applicable to each service, the initial application fee and the annual fees.