The Australia financial watchdog is proposing its clearing and settlement rules should take into account updated international standards from global regulatory body the International Organisation of Securities Commissions (IOSCO).
The Australian Securities and Investments Commission (ASIC) proposals seek to align oversight of clearing and settlement facilities with the recently released Principles for Financial Market Infrastructures, which were jointly developed by the Committee on Payment and Settlement Systems (CPSS) and IOSCO’s technical committee.
ASIC assert the proposals will also provide certainty and transparency on how it intends to implement measures and update existing guidance to ensure “appropriate regulatory influence” over cross-border clearing and settlement facilities.
In April, CPSS and IOSCO published new principles designed to ensure the infrastructure supporting global financial markets was robust and well placed to withstand financial shocks. The new principles apply to all systemically important payment systems, central securities depositories, securities settlement systems, central counterparties and trade repositories.