Assessment of ASX Clearing and Settlement Facilities – September 2019 Appendix C1. Financial Stability Standards for Central Counterparties

The Financial Stability Standards for Central Counterparties (CCP Standards) are made up of 21 headline standards, each of which is accompanied by a number of more detailed sub-standards. In assessing whether a facility has met each of the CCP Standards, the Reserve Bank takes into account associated guidance.^[1]

The following provides details of how ASX Clear and ASX Clear (Futures) observe each of the CCP Standards (including sub-standards). It also sets out the Bank's assessment of how well ASX Clear and ASX Clear (Futures) complied with each of the CCP Standards as at 30 June.^[2]

• Standard 1: Legal basis
• Standard 2: Governance
• Standard 3: Framework for the comprehensive management of risks
• Standard 4: Credit risk
• Standard 5: Collateral
• Standard 6: Margin
• Standard 7: Liquidity risk
• Standard 8: Settlement finality
• Standard 9: Money settlements
• Standard 10: Physical deliveries
• Standard 11: Exchange-of-value settlements
• Standard 12: Participant default rules and procedures
• Standard 13: Segregation and portability
• Standard 14: General business risk
• Standard 15: Custody and investment risks
• Standard 16: Operational risk
• Standard 17: Access and participation requirements
• Standard 18: Tiered participation arrangements
• Standard 19: FMI links
• Standard 20: Disclosure of rules, key policies and procedures, and market data
• Standard 21: Regulatory reporting

Footnotes

The standards and guidance are available at <https://www.rba.gov.au/payments-and-infrastructure/financial-market-infrastructure/clearing-and-settlement-facilities/standards/central-counterparties/2012/>. [1]

For an explanation of the Bank's Assessment approach and the ratings scale used, see the introduction to Appendix C. [2]