Launch of Steerage for the Australian Clearing and Settlement Facility Decision Regime

Following session with trade, the Reserve Financial institution of Australia (RBA) has printed its
Steerage on
the Australian Clearing and Settlement (CS) Facility Decision Regime. The RBA has additionally printed a
Response to Session which summarises the suggestions obtained from respondents and units out how the RBA
has addressed it within the Steerage.

In June 2025, in response to stakeholders’ requests, the RBA launched a session paper looking for
views on its draft Steerage on the Australian CS Facility Decision Regime (the Steerage). The Steerage
is meant to supply additional details about when and the way the RBA would usually anticipate to make use of its
decision powers over Australian CS services. It goals to help CS facility contributors and different
stakeholders to know the RBA’s normal method to decision and the potential impacts on
them if the RBA decides to make use of a decision energy. The Steerage doesn’t have the power of regulation, nor does
it pre-commit or in any other case bind the RBA to, or forestall the RBA from taking, a specific course of
motion. If there may be any inconsistency between the Steerage and the laws, the laws prevails.

Background

Clearing and settlement services present post-trade clearing and settlement providers for transactions
that happen in monetary markets. In Australia, the Australian Securities and Investments Fee
(ASIC) has main duty for licensing CS services and for granting exemptions from the
requirement to carry a CS facility licence. These services are co-regulated by ASIC and the RBA.

In September 2024, the Australian Parliament handed the Treasury Legal guidelines Modification (Monetary Market
Infrastructure and Different Measures) Act 2024. This amended the Firms Act
2001 to supply the RBA with disaster decision powers¹ with respect to domestically included CS
services².
These powers allow the RBA to handle or reply to a menace posed to the continuity of essential CS
facility providers or the soundness of the monetary system in Australia arising in relation to a home
CS facility licensee.