Document ID: chunk:federal_register_of_legislation:F2024L00683:body:0:p1
Version: federal_register_of_legislation:F2024L00683
Segment Type: other
Provision Reference: 
Character Range: 0–3110

Financial Stability Standards for Securities Settlement Facilities Determination 2024

    1 Name

This instrument is the Financial Stability Standards for Securities Settlement Facilities Determination 2024.

    2 Commencement

    This instrument commences on 24 June 2024.

3 Authority

This instrument is made pursuant to subsection 827D(1) of the Corporations Act 2001 (the Act).

    4. Determination

The Reserve Bank of Australia determines the Financial Stability Standards for Securities Settlement Facilities set out in Annexure A (SSF Standards) that apply to the class of clearing and settlement facility licensees specified in the SSF Standards.

In accordance with paragraph 827D(5)(a)(ii) of the Act, the SSF Standards will come into force on 24 June 2024.

Signed

Michele Bullock
Governor
Reserve Bank of Australia

Dated:  13 June 2024

Financial Stability Standards for
Securities Settlement Facilities

Introduction

The Financial Stability Standards for Securities Settlement Facilities (SSF Standards) are determined under section 827D(1) of the Corporations Act 2001 (the Act). The SSF Standards apply to all holders of an Australian Clearing and Settlement (CS) Facility Licence, under Part 7.3 of the Act, that operate a securities settlement facility, unless:

      (a) Subject to paragraph (b), the value of financial obligations settled through the facility in a financial year, calculated on a gross basis, does not exceed a threshold value of $40 billion.

      (b) When this threshold is exceeded for the first time, the operator of the facility must notify the Reserve Bank of Australia (Reserve Bank) immediately. The operator of the facility must then meet the SSF Standards during the next and each subsequent financial year. Transitional arrangements will be discussed and agreed with the Reserve Bank or, failing agreement, determined by the Reserve Bank.

Separate financial stability standards apply to CS facility licensees that operate a central counterparty. For the purposes of the SSF Standards, a securities settlement facility is a CS facility operated by an Australian CS facility licensee that enables its participants to transfer title to or other interests in securities, typically in return for payment. A securities settlement facility may also operate a central securities depository. Unless the contrary intention appears, obligations on a securities settlement facility arising from the SSF Standards should be interpreted as being obligations on the CS facility licensee, as operator of the securities settlement facility.

Objectives of the SSF Standards

The objectives of the SSF Standards are to ensure that CS facility licensees identify and properly control risks associated with the operation of the securities settlement facility and conduct their affairs in accordance with the SSF Standards in order to promote overall stability of the Australian financial system. Primary responsibility for the design and operation of a securities settlement facility in accordance with the SSF Standards lies with a CS facility licensee's