Assessment of ASX Clearing and Settlement Facilities – September 2019 Appendix C2. Financial Stability Standards for Securities Settlement Facilities

The Financial Stability Standards for Securities Settlement Facilities (SSF Standards) are made up of 19 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 SSF Standards, the Reserve Bank takes into account associated guidance.^[1]

The following provides details of how ASX Settlement and Austraclear observe each of the SSF Standards (including sub-standards). It also sets out the Bank's assessment of how well ASX Settlement and Austraclear complied with each of the SSF 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: Liquidity risk
• Standard 7: Settlement finality
• Standard 8: Money settlements
• Standard 9: Central securities depositories
• Standard 10: Exchange-of-value settlement systems
• Standard 11: Participant default rules and procedures
• Standard 12: General business risk
• Standard 13: Segregation and portability
• Standard 14: Operational risk
• Standard 15: Access and participation requirements
• Standard 16: Tiered participation arrangements
• Standard 17: FMI links
• Standard 18: Disclosure of rules, key policies and procedures, and market data
• Standard 19: 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/securities-settlement-facilities/2012/>. [1]

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