Australia's Department of the Treasury issued the Australian Government’s response to a Parliamentary Joint Committee report on competition in clearing and settlement and the ASX CHESS Replacement Project, setting out its position on 12 recommendations to strengthen oversight of financial market infrastructure. The response confirms several measures have already been implemented, while supporting or noting other recommendations directed to the regulators. Key actions cited include ministerial determinations enabling the Australian Securities and Investments Commission (ASIC) to make clearing and settlement services rules, implemented via an instrument that entered into force on 14 May 2024 and specifies classes of services within scope and declared services subject to Australian Competition and Consumer Commission arbitration. The response also notes ASIC’s clearing and settlement services rules were released for consultation on 30 July 2024 and registered in February 2025, and that Parliament passed the Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Bill 2024 in September 2024. Interoperability is confirmed as a focus for ASIC and the Reserve Bank of Australia (RBA) in supervising ASX’s CHESS replacement and monitoring barriers in current arrangements, while self-assessments against the Principles for Financial Market Infrastructures are expected within the 2024-25 financial year. On capability and technology risk, the Government supports in principle enhancing skills and conducting an audit of critical financial services technology platforms through the Council of Financial Regulators’ Cyber and Operational Resilience Working Group. Next steps flagged include an independent review within three years following the commencement and initial operation of the competition in clearing and settlement legislation, with attention to ASIC’s rules and the arbitration regime. ASIC and the RBA are also expected to consider the frequency of future PFMI self-assessments and whether joint assessments of clearing and settlement facilities are warranted in light of reforms now in force.
Department of Treasury (Australia) 2025-02-01
Australia's Department of the Treasury publishes government response on CHESS replacement oversight and clearing and settlement competition reforms
Australia's Department of the Treasury responded to a Parliamentary Joint Committee report on competition in clearing and settlement and the ASX CHESS Replacement Project, addressing 12 recommendations. Key measures include ASIC's authority to make rules, the Treasury Laws Amendment Bill 2024, and a focus on interoperability by ASIC and the Reserve Bank. An independent review of competition legislation is planned within three years, alongside considerations for future assessments of clearing and settlement facilities.