Trade Acceptance Service
On 3 March 2011, ASIC announced a timetable for the introduction of market competition for market operators. Prior to commencement of operations, a market operator needs to put in place adequate clearing and settlement arrangements.
ASX Group has developed the Trade Acceptance Service and makes it available to market operators so that trades executed on the trading platforms of those market operators can be cleared and settled by ASX Clear and ASX Settlement on the same basis as trades executed on ASX’s market.
The Trade Acceptance Service enables transactions in CHESS-eligible ASX-quoted securities effected through multiple approved trade execution platforms (Approved Market Operators or AMOs) to be accepted by ASX Clear and ASX Settlement (the ASX Clearing and Settlement Facilities) for clearing and settlement in an identical fashion to trades executed on ASX's cash equity market.
The Trade Acceptance Service is provided by the ASX Clearing and Settlement Facilities directly to AMOs. The Trade Acceptance Service is to be distinguished from the post-trade processing services which the ASX Clearing and Settlement Facilities provide to participants in those facilities in respect of transactions accepted by the facilities for clearing and settlement (Clearing and Settlement Services) and is illustrated below.