Licensed and exempt clearing and settlement facilities
Anyone who operates a CS facility in Australia must be licensed or exempted by the Minister.
A clearing and settlement (CS) facility is a facility that clears and settles transactions in financial products.
ASIC and the Reserve Bank of Australia are responsible for the supervision of operators of CS facilities and their participants. ASIC’s main functions are to:
- advise the Minister about CS facility licence applications, licence exemptions, changes to operating rules and other matters relating to CS facilities
- assess, report on and enforce licensees’ compliance with their obligations, and
- enforce the prohibition on a person operating, or holding out that they operate, a CS facility in Australia, if they are not licensed or exempt.
We will only advise the Minister to grant a CS facility licence if we consider that all the relevant criteria are met. The Minister may grant or refuse to grant a CS facility licence, or exempt a facility from the requirement to hold a CS facility licence.
- RG 211 Clearing and settlement facilities: Australian and overseas operators
- Licensed CS facilities operating in Australia
- Exempt CS facilities
- Assessment reports
- Implementing the CPSS –IOSCO Principles for financial market infrastructures in Australia, a joint statement from ASIC and RBA, 15 February 2013
- Council of Financial Regulators advice on competition in clearing of the cash equity market, 11 February 2013
- COFR paper: Application of the regulatory influence framework for cross-border central counterparties, March 2014
- RBA's Clearing and Settlement page