The Reserve Bank of Australia’s Payments System Board published an update from its August 2025 meeting focused on operational resilience across clearing, settlement and payments. It reviewed the regulatory response to ASX’s December 2024 CHESS batch failure, noted early progress in ASX’s plans to adequately operate, maintain and support the current CHESS, but agreed significant concerns remain and set further regulatory steps aimed at ensuring CHESS Replacement is designed with an appropriate level of resilience for critical financial market infrastructure. The Board endorsed the RBA’s annual Assessment of the ASX clearing and settlement facilities against the Financial Stability Standards, with publication planned after it has been provided to ASX, the Treasurer and the Australian Securities and Investments Commission. Members observed limited progress over the past year in addressing fundamental concerns on operational resilience and risk management, and said ASX must take urgent steps to improve governance and risk culture, with delivery of ongoing risk management, technology and transformation initiatives viewed as crucial to continuity of critical services. Discussion also covered oversight of international financial market infrastructures including LCH SwapClear, CME, Clearstream Banking, Euroclear Bank, CLS and Swift, highlighting the need for strong project governance, testing and migration strategies, and risks from growing reliance on a small number of critical third-party service providers. ASIC’s decision to grant Clearstream Banking a clearing and settlement facility licence was welcomed, alongside an emphasis on sufficient joint oversight by the RBA and ASIC. On system-wide payments resilience, the Board endorsed ongoing research on interoperability, third-party and concentration risks, resilience arrangements for high-value payments, and vulnerability to utilities outages, and discussed challenges in cash distribution and a proposed regulatory framework for cash distribution service providers consulted on by the CFR and ACCC. For the Review of Merchant Card Payment Costs and Surcharging, members noted initial stakeholder feedback on potential impacts on small issuers and fintechs and began considering options to reduce regulatory burden as consultation continues. Members also discussed global stablecoin growth and emerging regulatory frameworks, and welcomed the Government’s proposed reforms to place stored-value facilities, including stablecoins, under a regulatory and licensing regime.
Reserve Bank of Australia 2025-08-28
Reserve Bank of Australia Payments System Board agrees further regulatory steps on ASX CHESS resilience and endorses annual clearing and settlement assessment
The Reserve Bank of Australia's Payments System Board reviewed operational resilience in clearing, settlement, and payments, noting limited progress in addressing ASX's operational resilience and risk management concerns, and emphasized the need for improved governance and risk culture. The Board also discussed system-wide payments resilience, global stablecoin growth, and welcomed the Government's proposed reforms for stored-value facilities, including stablecoins, under a regulatory regime.