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The Reserve Bank of Australia - Financial Stability Standards

The RBA is a member of CPSS and therefore jointly responsible for implementing the CPSS-IOSCO Principles for Financial Market Infrastructures in Australia.

The RBA published new FSS which apply to central counterparties ("CCPs") and securities settlement facilities ("SSFs") in Australia, effective from 29 March 2013. The FSS are aligned with the requirements in the CPSS-IOSCO Principles that address matters relevant to financial stability.

The RBA has responsibility for assessing whether licensed CS facilities, including those operated by ASX Group, have complied with the FSS and done all things necessary to reduce systemic risk.

The RBA's Payments System Board has granted transitional relief from several FSS relating to recovery and resolution. These FSS, which will not come into force until 31 March 2014, are delayed given their dependence on the finalisation of policy work and legislative change. ASX has applied for additional transitional relief in respect of various FSS, which would require significant industry-wide change, and domestic legislative change in some cases, prior to compliance with those FSS being considered feasible.

On 16 August 2013, the RBA advised ASX of supplementary interpretive guidance for the application of the FSS to ASX Clear (Futures) because it is a domestically licensed facility, which provides services to clearing participants established in the European Union.  ASX responded to the RBA with details of the actions that will be taken to address the supplementary interpretive guidance for the standards.  Refer to ASX response.

 

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