AUSTRALIA: ASX Announces Amendments to Settlement Operating Rules

Wednesday August 27 2025

On 26^th August 2025, Australian Securities Exchange (ASX) announced amendments to ASX Settlement Operating Rules – removal of rules and procedures related to registering as a Securities Lending Participant and reporting of certain securities lending activity.

ASX Settlement has formally lodged with ASIC amendments to the ASX Settlement Operating Rules (ASXSORs) to remove certain requirements on Settlement Participants relating to securities lending activity undertaken by them or their related body corporates.

Those requirements were introduced in 2009 and support the publication by ASX Settlement on an aggregated basis of securities lending data in compliance with obligations under the Financial Stability Standards for Securities Settlement Facilities (FSS), specifically Standard 18.3.

The rule amendments are intended to become effective on 22 September 2025 (subject to regulatory clearance). As from that time, ASX Settlement Participants that engage in, or have non-participant related body corporates that engage in, securities lending activity will no longer be required to:

• be registered as a Securities Lending Participant (ASXSOR 6.8A.4);
• report daily loaned and borrowed positions (ASXSOR 6.8A.5);
• report quarterly committed positions (ASXSOR 6.8A.5).

ASX Settlement is retaining requirements that messages submitted to Clearing House Electronic Subregister System (CHESS) by Settlement Participants to transfer financial products must identify if the transfer relates to a securities lending transaction (ASXSOR 6.8A.1).

ASX Settlement engaged with its Settlement Participants on the ongoing appropriateness and relevance of its existing securities lending reporting requirements and publications.

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