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Basel Committee on Banking Supervision

The Australian Prudential Regulation Authority (“APRA”) implemented Basel III capital reforms in Australia through revisions to ‘Prudential Standard APS 112 Capital Adequacy: Standardised Approach to Credit Risk’ (“APS 112”) that took effect on 1 January 2013.  APRA, the Reserve Bank of Australia and the Australian Securities and Investments Commission have each confirmed that both ASX Clear and ASX Clear (Futures) are ‘Qualifying CCPs’ as defined under APS 112.

This means that, where an Authorised Deposit-taking Institution (ADI) satisfies all applicable conditions under APS112, the ADI may apply concessional risk weightings for centrally cleared transactions, as prescribed by APS112, to eligible trade exposures that are cleared through ASX Clear or ASX Clear (Futures).