Austraclear Advisory Committee

Austraclear has established the Austraclear Advisory Committee to allow Austraclear participants to provide the Boards of ASX Clear and ASX Settlement with user input in relation to the design, operation and development of Austraclear, to provide a mechanism for ASX to report to users on its strategic plans in relation to the design, operation and development of Austraclear; and to provide business and operational input on the forward work program for Austraclear.

The Committee comprises representatives of major Austraclear participants with a view to achieving a balance among the interests of Austraclear’s different users; this in turn enables the Committee to function as an effective process for providing user input to ASX.

The Committee meets at least four times a year.

The Committee provides user input to Austraclear’s forward work program; the current work program is as follows:

List of enhancements to Austraclear ahead of Exigo insourcing
Priority Enhancement Notes
1 Same day cash market ISIN file Now in production
2 128F indicator to flag whether issues are exempt from non-resident withholding tax Will be implemented mid 2014
List of enhancements to Austraclear as part of Exigo insourcing
3a Pre-matching of debt securities, including introduction of a match-hold concept and generation of a limited but meaningful suite of SWIFT MT548 messages
3b Use of SWIFT MT578 for allegement of transactions To be delivered as a second stage of item 3a if possible; if not, to be delivered post Exigo insourcing
3c Automation of authorisation of settlements To be delivered as a third stage of item 3a if possible; if not, to be delivered post Exigo insourcing
4 Enhancement of the MT564 Corporate Actions notification message to include a unique corporate action identifier, ideally in COAF format, and to flag the event as unconfirmed until such time as the rate is confirmed
Automation of margin payments:  current process is manual and outsourced by local brokers to banks; concept would be to automate this by matching payment instructions via SWIFT
Ability to identify in series setup whether the first coupon payment is a full first coupon or using a short interpolated rate Low priority
List of enhancements to Austraclear post Exigo insourcing
Enhancements to issue management functionality to enable issuers to send notices direct to their holders and holders to respond (e.g. proxy voting), and to include standards for provision of notices and instructions
New message – MT536 (Statement of Transactions)
9 Pre-allocated ISINs for deposits and withdrawals:  Austraclear would pre allocate a block of ISINs to discount issuers (sell side) so that the ISIN is known to them at deal confirmation stage
10 STP for corporate actions (extension of host-to-host):  enhancement to enable more accurate calculation of entitlements on FRNs/MBS.  Alternative would be to amend issuer rules to ensure provision of accurate information on projected income by the morning of PD-1
11 Automation via a SWIFT message (MT5xx) of the bulk transfer of securities from one mnemonic to the other when owned by same participant
12 Enhancements to MT535 (Statement of Holdings) enabling users to select the frequency of this message (e.g. daily, weekly, or monthly)  Low priority
13 Automated billing Low priority

Enquiries relating to the Austraclear Advisory Committee should be directed to:

Andrew White
General Manager – Settlement Services
Telephone:  +612 9227 0596
Email:  andrew.white@asx.com.au