Skip to content

New regulatory standards

Code of Practice for clearing and settlement of cash equities in Australia

Clearing and settlement of cash equities information and details on the consultation process and upcoming consultation meetings on the draft Code of Practice are available here.

Recent Regulatory Developments

The International Committee on Payment and Settlement Systems (CPSS) and the Technical Committee of the International Organization of Securities Commissions (IOSCO) are responsible for the establishment of the broad international standards for the regulation and conduct of clearing and settlement facilities. These are set out in the CPSS-IOSCO Principles for Financial Market Infrastructures, which were released in April 2012.
CPSS-IOSCO Principles for Financial Market Infrastructures

In December 2012, the Reserve Bank of Australia published new Financial Stability Standards which will apply to central counterparties (CCPs) and securities settlement facilities. These standards aim to ensure that licensed clearing and settlement facilities conduct their affairs in a way that promotes the overall stability of the Australian financial system and, as such, incorporate the CPSS-IOSCO international standards.
RBA - New Financial Stability Standards: Final Standards and Regulation Impact Statement

As part of their obligations as clearing and settlement facility licensees, both ASX Clear and ASX Clear (Futures) must, effective 29th March 2013, comply with these new Standards.

Please refer to FSS & CPSS IOSCO Principles to see ASX Group’s response to the CPSS-IOSCO Disclosure Framework for Financial Market Infrastructures, as required under the FSS. 

ASX Consultation

In order to ensure ongoing compliance with the new standards, ASX’s CCPs are currently engaged in a programme of market consultation where aspects of the new regulatory requirements are likely to have significant market impact.

On 25th October 2012, ASX released a Market Discussion Document on Derivatives Account Segregation and Portability.

Derivatives Account Segregation and Portability Consultation Paper

Public responses to this paper may be found here.

On 5th June 2013, ASX released a Market Feedback Statement to the Discussion Document. This summarised the responses received and outlined ASX’s next steps in relation to Derivatives Account Segregation and Portability.

A copy of the Feedback Statement can be found here.

On 29th July 2013 ASX released a Consultation Paper on the implementation of the Reserve Bank of Australia’s (RBA) Financial Stability Standards (FSS).

Financial Stability Standards Implementation Consultation Paper

Public responses to this paper may be found here.

On 13th November 2013, ASX released a Market Feedback Statement to the Consultation Paper. This summarised the responses received and outlined proposed cash equity market enhancements to improve client protection. Also discussed in this document are the next steps for the implementation of new liquidity arrangements in the event of an ASX Clear Participant default.

A copy of the Feedback Statement can be found here.

Further consultation documents on these topics will be published in the near future.