Clearing and Settlement of Cash Equities in Australia

Settlement Pricing

ASX Settlement operates a settlement system and a fully electronic securities depository for products traded on ASX, other Approved Market Operators and Approved Listing Market Operators.

ASX Settlement charges participants for holdings transfers and DvP settlement to meet novated obligations between the participant and ASX Clear and non-novated obligations directly between participants.

Cash market settlement fees

Headline cash market settlement fees

Service  Explanation  Charge 
Batch Settlement DvP  Market settlement of Delivery versus Payment obligations per line of stock  $0.30 
DvP Settlement   Delivery versus Payment between two participants $1.30 

Cash market settlement fee schedule

A detailed fee schedule for cash market settlement services is available here. The fee schedule sets out the fees for cash market settlement services for ASX Settlement participants and a brief service description for each of the services.  It also provides the details of the ASX cash market settlement revenue sharing scheme.

Participants with queries on the fee schedule should contact their ASX Account Manager.

Worked examples - headline settlement fees

Example 1: Exchange traded transaction, cleared and settled

A transaction is traded on exchange (ASX or Chi-X) involving two participants.  This trade will be novated by ASX Clear and it will be automatically included in the Delivery versus Payment (DvP) settlement batch.  For this service, ASX Settlement will charge each settlement participant $0.30 for DvP batch settlement confirmation (full DvP only, per 156 message).

Diagram 1: Exchange traded transaction, cleared and settled

Example 2: Bilateral transaction off exchange, settled

A bilateral transaction conducted off exchange (or conducted on an ALMO) involving two participants and which is settled by ASX Settlement.  This transaction is not novated by ASX Clear and, as such, does not incur a clearing fee.  Each participant sends a dual entry settlement notification (101 message) to CHESS and CHESS will then match the instructions ready for settlement.  For this service, ASX Settlement charges each participant $1.30 (per 101 message).  If the transaction is full DvP, it is included in the DvP settlement batch.  For this service, ASX Settlement will charge each participant $0.30 for DvP batch settlement confirmation (full DvP only, per 156 message generated from a 101 message).  This fee will not be charged if the transaction is free of payment.

Diagram 2: Bilateral transaction off exchange, settled

 

For a full description of the settlement service offering for cash equities, please refer to ASX Settlement.

Transparency in relation to fee changes

Participants are notified of any fee changes by way of market circular.

If ASX changes cash market clearing and/or settlement fees, participants will be provided with information to assist in their analysis of the impact of clearing and settlement price changes on their total service costs. In the event that fees are changed, participants will be notified individually of the pricing changes and the implications for their businesses.

Market circulars are available in the Participant Library of ASX Online.  For access to the Participant Library, please contact the ASX Online Help Desk on 1800 682 484 or participants.online@asx.com.au.

Non-discrimination - fee waivers and discounts

ASX Clear and ASX Settlement do not discriminate between different participant types with respect to fees and charges.

Under new Financial Stability Standard guidelines, ASX is required to publish its policies with respect to any available fee waivers and discounts.  Under the Code of Practice for Clearing and Settlement of Cash Equities in Australia, ASX is also required to provide the details of the applicable terms, conditions and eligibility criteria of any rebates, revenue sharing arrangements and discounts applicable to each cash market clearing and settlement service.

Fee and billing process

ASX Clear and ASX Settlement are wholly-owned subsidiaries of ASX Limited (ASX) and are responsible for the provision of clearing and settlement services to ASX participants.

Fees are invoiced by ASX Operations (which is also a wholly-owned subsidiary of ASX) on behalf of ASX Clear and ASX Settlement. Invoices are issued monthly in arrears.

ASX Settlement will provide settlement participants with individual analytical quarterly reports setting out their cash market settlement activity and their transaction fees. A sample of the quarterly report that settlement participants will receive for settlement only is available here.