Although largely invisible to market users, clearing and settlement services are critical to the operation of Australia’s financial markets. They help reduce counterparty and systemic risk, and provide transaction efficiency and certainty for end investors.
Backed by significant capital and collateral, and overseen by Australian regulators, ASX’s clearing and settlement infrastructure supports the world-class reputation of Australia's financial markets.
The clearing of executed trades performs a critical role in the operation of Australia’s financial markets. ASX’s clearing services help reduce counterparty and systemic risk, and provide transaction efficiency and certainty for end investors.
ASX Clearing Corporation operates two Clearing Houses as licensed facilities under the Corporations Act.
ASX Clear is the central counterparty (CCP) for the trading of shares, warrants and exchange-traded funds traded on ASX Trade or via an Approved Market Operator (AMO).
ASX Clear (Futures) is the central counterparty (CCP) for all futures and options products traded on ASX Trade24 and OTC products affirmed on an approved Affirmation platform.
As the central counterparty, the Clearing House becomes the seller to every buyer and the buyer to every seller, making it liable for completing all cleared transactions on the relevant market. This occurs through a contractual process known as novation, in accordance with the operating rules of each Clearing House.