Clearing and Settlement of Cash Equities in Australia

Code of Practice

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.

The ASX Cash Equities Clearing and Settlement Code of Practice sets out ASX’s commitment to comply with the Regulatory Expectations, and its commitments 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.