Guidance released for Australian clearing and settlement resolution regime
The Reserve Bank of Australia has published guidance and a response to consultation on its Clearing and Settlement (CS) Facility Resolution Regime. This guidance clarifies how the RBA would generally use its resolution powers over Australian CS facilities.
RBA clarifies resolution approach
The Reserve Bank of Australia has released its Guidance on the Australian Clearing and Settlement (CS) Facility Resolution Regime.
This document provides information on when and how the RBA expects to use its resolution powers over Australian CS facilities.
It aims to help CS facility participants and other stakeholders understand the RBA's general approach to resolution and potential impacts.
A Response to Consultation, summarising industry feedback, was also published.
Legislative basis for crisis intervention
Clearing and settlement facilities are co-regulated by ASIC and the RBA, providing critical post-trade services.
In September 2024, the Australian Parliament passed the Treasury Laws Amendment Act 2024. This Act amended the Corporations Act 2001, granting the RBA crisis resolution powers over domestically incorporated CS facilities to manage threats to critical services or financial stability.