Clearing and Settlement of Cash Equities in Australia

Council of Financial Regulators' Review

On 11 February 2013, the former Deputy Prime Minister and Treasurer announced a decision to defer a decision on any licence application from a central counterparty seeking to offer cash equities clearing services in Australia for a period of two years.

In making this decision, the former Deputy Prime Minister and Treasurer accepted in full the recommendations of the Council of Financial Regulators (the Council) in relation to competition in the clearing and settlement of the Australian cash equity market.  The Council's advice was based on the work carried out by the Reserve Bank of Australia, the Australian Treasury, and the Australian Securities and Investments Commission in collaboration with the Australian Competition and Consumer Commission, and followed consultation on the Council discussion paper 'Competition in the Clearing and Settlement of the Australian Cash Equity Market'.