Document ID: chunk:federal_register_of_legislation:F2024C00507:body:0:p21
Version: federal_register_of_legislation:F2024C00507
Segment Type: other
Provision Reference: 
Character Range: 56842–59854

by the Reserve Bank from time to time.

Standard 21: Regulatory reporting

A central counterparty should inform the Reserve Bank in a timely manner of any events or changes to its operations or circumstances that may materially impact its management of risks or ability to continue operations. A central counterparty should also regularly provide information to the Reserve Bank regarding its financial position and risk controls on a timely basis.

   21.1 A central counterparty should inform the Reserve Bank as soon as reasonably practicable if:

      (a) it breaches, or has reason to believe that it will breach:

        (i) a CCP Standard; or

        (ii) its broader legislative obligation to do, to the extent that it is reasonably practicable to do so, all things necessary to reduce systemic risk;

      (b) it becomes subject to external administration, or has reasonable grounds for suspecting that it will become subject to external administration;

      (c) a related body to the central counterparty becomes subject to external administration, or if the central counterparty has reasonable grounds for suspecting that a related body will become subject to external administration;

      (d) a participant becomes subject to external administration, or if the central counterparty has reasonable grounds for suspecting that a participant will become subject to external administration;

      (e) a participant fails to meet its obligations under the central counterparty's risk control requirements or has its participation suspended or cancelled because of a failure to meet the central counterparty's risk control requirements;

      (f) it fails to enforce any of its own risk control requirements;

      (g) it plans to make significant changes to its risk control requirements or its rules, policies and procedures;

      (h) it or a service it relies on from a third party or outsourced provider experiences a significant operational disruption, including providing the conclusions of its post-incident review;

      (i) any internal audits or independent external expert reviews are undertaken of its operations, risk management processes or internal control mechanisms, including providing the conclusions of such audits or reviews;

      (j) its operations or risk controls are affected, or are likely to be affected, by distress in financial markets;

      (k) it has critical dependencies on utilities or service providers, including providing a description of the dependency and an update if the nature of this relationship changes;

      (l) it proposes to grant a security interest over its assets (other than a lien, right of retention or statutory charge that arises in the ordinary course of business);

      (m) it proposes to incur or permit to subsist any loans from participants or members unless such loans are subordinated to the claims of all other creditors of the central counterparty; or

      (n) any other matter arises which has or is likely to have a