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CS Services Rules and Code of Practice

ASX is committed to ensuring Australia’s clearing, settlement and issuer services infrastructure is efficient, well capitalised and well governed. ASX recognises the importance of working collaboratively with customers and other stakeholders to deliver world-class financial infrastructure and clearing, settlement and issuer services that meet the needs of a diverse range of users in the Australian cash equities market. 

In September 2017, the Council of Financial Regulators released an update to the ‘Regulatory Expectations for the Conduct of Cash Equity Clearing and Settlement Services in Australia’ (Regulatory Expectations).

The Regulatory Expectations provide a framework for ASX’s conduct in operating its cash equities clearing and settlement services while it remains the sole provider of these services.  They relate to key governance, pricing and access matters.

In August 2023, ASIC and the RBA issued a joint letter to ASX ‘Regulatory Expectations for ASX Cash Equities Clearing and Settlement Advisory Group’ (Letter of Expectations) outlining regulatory expectations for the new ASX Cash Equities Clearing and Settlement Advisory Group (Advisory Group) convened in September 2023 as a further stakeholder forum for input to the Boards of ASX Clear and ASX Settlement on strategic matters related to cash equities clearing and settlement services and associated infrastructure, operating alongside existing stakeholder forums, including the Business Committee.

The ASX Cash Equities Clearing and Settlement Code of Practice (Code of Practice) sets out ASX’s commitments to comply with the Regulatory Expectations and the Letter of Expectations, and its commitment to customers and other stakeholders in managing cash equities clearing and settlement infrastructure and services for the Australian market.

ASX’s core commitments under the Code of Practice include providing transparent and non-discriminatory pricing of and access to its CS services, protecting the confidential information of users, and establishing mechanisms for meaningful user input into the development of cash equity CS services.  ASX has also made additional commitments, including to retain at least 50% non-executive directors on the Boards of ASX Clear and ASX Settlement who are independent of ASX Limited.

The ASIC CS Services Rules were made in February 2025. These rules implement the Regulatory Expectations as enforceable obligations on ASX and impose a number of additional obligations.  

 

Further information

ASX Clear and ASX Settlement have introduced a new Cash Equities Clearing, Settlement and Issuer Services Pricing Policy (Pricing Policy) for its cash equity clearing, settlement and issuer services, which provides greater transparency to customers and introduces additional processes for ensuring compliance with ASX’s regulatory obligations including the ASIC CS Services Rules 2025.

A key element of the Pricing Policy is a new pricing methodology that is widely used in other essential infrastructure industries, that caps the revenue that ASX can receive for cash equities clearing, settlement and issuer services to the amount required to efficiently deliver those services, plus a reasonable rate of return. This is achieved through the use of the ‘Building Block Method’ and an annual review of actual revenue against an annual revenue requirement. An efficiency scheme has also been incorporated into the Pricing Policy to ensure that operating costs are minimised.

Reviews of the fee schedules for cash equities clearing, settlement and issuer services can only be conducted when specific trigger events occur, and ASX will consult with stakeholders to seek their feedback following a fee review trigger being hit. 

Development of the Pricing Policy

In September 2024, ASX released a consultation paper on the new Pricing Policy, seeking feedback from customers on how and when ASX should take action to reimburse customers for any excess revenue or recover any revenue shortfalls, how and when ASX should take action to review the associated fee schedules for the services, and the proposed commencement date of the new Pricing Policy.

ASX also held two industry webinars in September and October 2024 to discuss the Pricing Policy Consultation Paper in further detail and provide the opportunity for stakeholders to ask questions.

In May 2025, ASX published its response to consultation, which included an updated draft of the Pricing Policy and the non-confidential submissions received.

 

 

In 2025, ASX updated its policy which sets out the principles to be applied for cost, revenue and net interest income allocation when preparing the financial profitability and financial metrics for a section of the ASX Group.

ASX’s historical internal cost allocation and transfer pricing policy between ASX group entities for clearing and settlement of cash equities in Australia is available here. This policy has been superseded by the 2025 ASX Cost and Revenue Allocation Policy.

Background to the development of the Code

In developing the Code, ASX undertook a comprehensive public consultation process involving a call for written submissions and over 40 bilateral consultation meetings, 2 industry briefing sessions in Sydney and Melbourne and roundtables with the members of the Australian Financial Markets Association (AFMA) and Stockbrokers Association of Australia (SAA).

On 10 April 2013, a draft Code of Practice for Clearing and Settlement of Cash Equities in Australia (draft Code) was released for comment.

A range of consultation meetings were held with interested stakeholders in Sydney and Melbourne throughout April and early May. Industry briefings were held on 17 April 2013 in Sydney and 22 April 2013 in Melbourne.

Consultation roundtables were held with members of the Australian Financial Markets Association (AFMA) in Sydney on 29 April 2013 and with members of the Stockbrokers Association of Australia (SAA) in Sydney on 6 May 2013.

The consultation period formally closed on 8 May 2013.  ASX received 10 written submissions, 2 of which were provided on a confidential basis.  The non-confidential submissions are available below.

The consultation feedback demonstrated strong support for the draft Code and the establishment of an advisory forum (the Forum) to provide user input to the Boards of ASX Clear and ASX Settlement.  

Consultation feedback has been incorporated into the final version of the Code. 

Revisions to the draft Code following consultation

The draft Code exposed for comment on 10 April 2013 was revised to incorporate a number of changes to address consultation feedback.

ASX received 10 written submissions in 2013 on the draft Code. Two submissions were provided on a confidential basis. The non-confidential submissions received are as follows. The submissions are in alphabetical order by name of the entity making the submission.

No.  Organisation Date Received Pages
1.Australian Custodial Services Association09/05/20132
2.Australian Financial Markets Association08/05/20132
3.Association of Superannuation Funds of Australia08/05/20133
4.Commonwealth Bank of Australia Group Participants08/05/20133
5.Chi X Australia14/05/20136
6.Computershare08/05/20131
7.Stockbrokers Association of Australia09/05/20133

2014 consultation on the TAS and SFS

Chi-X submission
PDF - 470KB
APX submission
PDF - 596KB

In accordance with its Code of Practice commitments, ASX consulted in H1 2014 on enhancements to its service level commitments and Information Handling Standards for the protection of confidential information, including conflict sensitive information, received in connection with the Trade Acceptance Service (TAS) and the Settlement Facilitation Service (SFS).  ASX also consulted on the operational and technical standards / procedures for the Trade Acceptance Service and the Settlement Facilitation Service.

In response to the Consultation Paper Clearing and Settlement Services for Approved Market Operators and Approved Listing Market Operators: enhanced service levels and information handling standards, ASX received written submissions from Chi X Australia (Chi X) and Asia Pacific Stock Exchange (APX).  

2014 public consultation on proposed operational improvements

In December 2014, ASX consulted on proposed operational improvements to the Code of Practice for Clearing and Settlement of Cash Equities in Australia (Code of Practice).  This consultation was undertaken ahead of the review of the market structure for cash market clearing by regulators and Government.

ASX identified a small number of operational improvements to increase the effectiveness and efficiency of the Code of Practice following its first year of operation.  The operational improvements related to the frequency of meetings of advisory mechanisms established by ASX under the Code of Practice (the Forum and the Business Committee), and measures to simplify the administration of the Code of Practice.

Publication of global cost benchmarking report and internal cost allocation and transfer pricing policy

In 2014, ASX commissioned a report to benchmark the fees for cash equity post-trading (clearing and settlement) services against those provided by financial market infrastructure providers in other financial centres, which concluded that the fees for post-trading services in Australia are in line with fees for similar services provided in financial centres of comparable size.

ASX also published an internal cost allocation and transfer pricing policy for clearing and settlement of cash equities.

2016 updates to the Code of Practice to align with regulatory expectations

In October 2016, ASX updated its Code of Practice. 


Background to the changes

On 12 October 2016, the then Treasurer, the Hon Scott Morrison MP, announced the release of two policy statements by the Council of Financial Regulators on clearing and settlement for the cash equity market:

  • Regulatory Expectations for Conduct in Operating Cash Equity Clearing and Settlement Services in Australia (Regulatory Expectations)
  • Minimum Conditions for Safe and Effective Competition in Cash Equity Clearing in Australia (Minimum Conditions)

The development of the two policy statements by the Council of Financial Regulators was endorsed by the Government as part of its announcement on cash equities clearing competition on 30 March 2016. The Treasurer announced a reform package that would be developed to provide the path for competition in cash market clearing. The Treasurer also released the Council of Financial of Regulators’ ‘Review of Competition in Clearing Australian Cash Equities: Conclusions’ (CFR Review Conclusions Paper).  The Council of Financial Regulators’ review was commenced in February 2015 with the release of the Consultation Paper ‘Review of Competition in Clearing Australian Cash Equities'. 

In March 2017, the Council of Financial Regulators and the Australian Competition and Consumer Commission released a consultation paper, ‘Safe and Effective Competition in Cash Equity Settlement in Australia’. Following this consultation the agencies released a policy statement setting out minimum conditions for safe competition in cash equities settlement and also made minor and consequential changes to update the Regulatory Expectations and Minimum Conditions (Clearing). The updated documents can be found here.

The Council of Financial Regulators previously undertook a review of competition in cash equities clearing in 2012 (2012 Review). The 2012 Review recommended to government that a decision on any licence application from central counterparty seeking to compete in the Australian cash equity market be deferred for a period of two years. The 2012 Review also recommended that ASX be encouraged to work with industry to develop a Code of Practice. The government endorsed the recommendations of the 2012 Review in February 2013. 

External audit: Year ended 30 June 2025

PwC were engaged to provide a reasonable assurance audit in relation to ASX’s compliance with the Regulatory Expectations in accordance with the Australian Standard on Assurance Engagement 3100 – Compliance Engagements issued by AASB for the year ended 30 June 2025. 

PwC assessed ASX’s compliance with the Regulatory Expectations by reference to the Compliance Framework developed by ASX, which comprises the ASX Code of Practice and related policies and procedures.

The assurance report sets out PwC’s unqualified audit opinion that “ASX has complied, in all material respects, with the Regulatory Expectations as evaluated against the Compliance Framework for the year ended 30 June 2025.

Historical audits

In the ‘Regulatory Expectations for Conduct in Operating Cash Equity Clearing and Settlement Services in Australia’ (CFR Policy Statement), there is a requirement for ASX to commit to submitting an annual external audit of its governance, pricing and access arrangements against the Regulatory Expectations.  In the Code of Practice, ASX committed to annually commission an external audit of its compliance with the Regulatory Expectations to be conducted by an independent assurance firm.

The first audit of ASX’s compliance with the Regulatory Expectations since the Council of Financial Regulators (CFR) released the Regulatory Expectations in October 2016 was released in 2017.  Prior to the release of the Regulatory Expectations, ASX has been subject to an independent annual audit in relation to its compliance with the Code of Practice for Cash Equities Clearing and Settlement in Australia for financial years 2014, 2015 and 2016.

Past reviews
PwC external audit report 2024 is available here
PwC external audit report 2023 is available here
PwC external audit report 2022 is available here
PwC external audit report 2021 is available here
PwC external audit report 2020 is available here
PwC external audit report 2019 is available here
PwC external audit report 2018 is available here
PwC external audit report 2017 is available here
ASX internal review report 2016 is available here
PwC external review report 2016 is available here
ASX internal review report 2015 is available here
PwC external review report 2015 is available here
ASX internal review report 2014 is available here
PwC external review report 2014 is available here

 

The Regulatory Expectations for Conduct in Operating Cash Equity Clearing and Settlement Services in Australia (‘Regulatory Expectations’), published by the Council of Financial Regulators (CFR), provide a framework for ASX’s conduct in operating its cash equities clearing and settlement services while it remains the sole provider of these services. They relate to key governance, pricing and access matters.


The history of the Regulatory Expectations

The Regulatory Expectations were first published in October 2016 and revised in September 2017. For the history of the development of the Regulatory Expectations and related documents, refer to:

In October 2020, the Council of Financial Regulators and the Australian Competition and Consumer Commission published the Application of the Regulatory Expectations for Conduct in Operating Cash Equity Clearing and Settlement Services in Australia.

In August 2023, ASIC and the RBA issued a joint letter to ASX outlining the regulatory expectations for a new advisory group. The Cash Equities Clearing and Settlement Advisory Group was convened in September 2023 as a further stakeholder forum for input to the Boards of ASX Clear and ASX Settlement on strategic matters related to cash equities clearing and settlement services and associated infrastructure, operating alongside existing stakeholder forums, including the Business Committee.

 

ASX publishes management accounts for cash equities clearing, settlement and issuer services in Australia annually.

Cash Market Clearing, Settlement and Issuer Services Management Income Statements

Name
Cash Market Clearing, Settlement and Issuer Services Management Income Statement for the year ended 30 June 2025

Cash Market Clearing Management Income Statements

Name Size
Cash Market Clearing Management Income Statement for the year ended 30 June 2024
432KB
Cash Market Clearing Management Income Statement for the year ended 30 June 2023
605KB
Cash Market Clearing Management Income Statement for the year ended 30 June 2022
693KB
Cash Market Clearing Management Income Statement for the year ended 30 June 2021
826KB
Cash Market Clearing Management Income Statement for the year ended 30 June 2020
973KB
Cash Market Clearing Management Income Statement for the year ended 30 June 2019
982KB
Cash Market Clearing Management Income Statement for the year ended 30 June 2018
6MB
Cash Market Clearing Management Income Statement for the year ended 30 June 2017
789KB
Cash Market Clearing Management Income Statement for the half-year ended 31 December 2016
17KB
Cash Market Clearing Management Income Statement for the year ended 30 June 2016
2MB
Cash Market Clearing Management Income Statement for the half-year ended 31 December 2015
67KB
Cash Market Clearing Management Income Statement for the year ended 30 June 2015
739KB
Cash Market Clearing Management Income Statement for the half-year ended 31 December 2014
16KB
Cash Market Clearing Management Income Statement for the year ended 30 June 2014
1MB
Cash Market Clearing Management Income Statement for the half-year ended 31 December 2013
16KB
Cash Market Clearing Management Income Statement for the year ended 30 June 2013
315KB

Cash Market Settlement Management Income Statements

Name Size
Cash Market Settlement Management Income Statement for the year ended 30 June 2024
431KB
Cash Market Settlement Management Income Statement for the year ended 30 June 2023
587KB
Cash Market Settlement Management Income Statement for the year ended 30 June 2022
623KB
Cash Market Settlement Management Income Statement for the year ended 30 June 2021
483KB
Cash Market Settlement Management Income Statement for the year ended 30 June 2020
949KB
Cash Market Settlement Management Income Statement for the year ended 30 June 2019
965KB
Cash Market Settlement Management Income Statement for the year ended 30 June 2018
6MB
Cash Market Settlement Management Income Statement for the year ended 30 June 2017
784KB
Cash Market Settlement Management Income Statement for the half-year ended 31 December 2016
17KB
Cash Market Settlement Management Income Statement for the year ended 30 June 2016
2MB
Cash Market Settlement Management Income Statement for the half-year ended 31 December 2015
67KB
Cash Market Settlement Management Income Statement for the year ended 30 June 2015
726KB
Cash Market Settlement Management Income Statement for the half-year ended 31 December 2014
16KB
Cash market settlement management income statement for the year ended 30 June 2014
1MB
Cash market settlement management income statement for the half-year ended 31 December 2013
20KB
Cash Market Settlement Management Income Statement for the year ended 30 June 2013
310KB

 

Consistent with ASX’s obligations under the ASIC CS Services Rules 2025, ASX will publish an independent expert report comparing the pricing of its Covered Services with the price of similar services in other comparable international markets in 2026, and subsequently at least every five years.

In 2014, ASX Clear and ASX Settlement commissioned Oxera, a leading independent European economics consultancy, to benchmark the costs of using ASX’s cash equity post-trading (clearing and settlement) services against the costs of using the services provided by financial market infrastructure providers (FMIs) in other financial centres. On 23 June 2014, ASX released the Oxera Global Cost Benchmarking of Cash Equity Clearing and Settlement Services report.

Ahead of the commencement of the Code of Practice in August 2013, ASX commissioned Oxera to update its earlier analysis, which was presented in the CFR December 2012 report. The note prepared for ASX by Oxera in April 2013 updated the results from its earlier analysis in 2012 using international pricing schedules from early 2013 and by incorporating user/intermediary profiles that are more representative of the Australian market.