Wednesday July 2 2025
News Source: Global Exchanges
Focus: Clearing & Settlement
Type: General
Country: Australia
On 30th June 2025, the Reserve Bank of Australia (RBA) released a consultation paper on proposed guidance for the Australian Clearing and Settlement (CS) Facility Resolution Regime.
In September 2024, the Australian Parliament passed the Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Act 2024 (the Amending Act). This amended the Corporations Act 2001 to provide the RBA with crisis resolution powers (resolution powers) with respect to domestically incorporated CS facilities. These powers enable the RBA to manage or respond to a threat posed to the continuity of critical CS facility services or the stability of the financial system in Australia arising in relation to a domestic CS facility licensee.
This guidance is intended to provide information and transparency about when and how the RBA would generally expect to use these resolution powers. It aims to assist CS facilities, their users, market operators and other stakeholders to understand the RBA’s general approach to resolution and the potential impacts on them if the RBA decides to use a resolution power.
The Australian Securities and Investment Commission (ASIC) has primary responsibility for licensing CS facilities and for granting exemptions from the requirement to hold a CS facility licence. Holders of Australian CS facility licences are co-regulated by ASIC and the RBA.
The RBA has regulatory responsibilities in relation to financial system stability and supervises CS facility licensees with the goal of ensuring that CS facilities are operated in a way that is consistent with financial stability and, where possible, reduces systemic risk. Among other things, the RBA has powers to set and enforce Financial Stability Standards (FSS) and to promote the stability of the Australian financial system.
The RBA and ASIC work closely to supervise CS facility licensees and will closely coordinate their actions during incidents or crises. Any crisis response will also involve active coordination between Australia’s Council of Financial Regulators (CFR) members.
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