Document ID: chunk:federal_register_of_legislation:F2024L00683:body:0:p19
Version: federal_register_of_legislation:F2024L00683
Segment Type: other
Provision Reference: 
Character Range: 51987–55085

control requirements or has its participation suspended or cancelled because of a failure to meet the securities settlement facility'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 securities settlement facility; or

      (n) any other matter arises which has or is likely to have a significant impact on its risk control arrangements (see also SSF Standards 1.6, 14.10 and 17.3).

   19.2 A securities settlement facility should also provide to the Reserve Bank, on a timely basis:

      (a) audited annual accounts;

      (b) management accounts on a regular basis, and at least quarterly;

      (c) risk management reports on a regular basis, and at least quarterly;

      (d) periodic activity, risk and operational data, as agreed with the Reserve Bank; and

      (e) any other information as specified by the Reserve Bank from time to time.

Glossary

Unless the contrary intention appears, the terms in the Financial Stability Standards for Securities Settlement Facilities (SSF Standards) have the meanings provided for in this Glossary. Wordings or terms used in this Glossary importing the singular shall include the plural and vice versa where the context requires.

Note: This Glossary is based largely on the glossary to the Principles, and the CPSS Glossary of Terms Used in Payments and Settlement Systems, added to and amended by the Reserve Bank as appropriate.[3]

Term                                    Definition
affiliate                               This term means 'associated entity' as defined in section 50AAA of the Corporations Act 2001.
book entry                              The transfer of securities and other financial assets which does not involve the physical movement of paper documents or certificates (for example, the electronic transfer of securities).
business continuity                     A state