AUSTRALIA: ASX commits to Code of Practice for cash equities clearing and settlement

Monday February 11 2013

ASX has welcomed the announcement by the Deputy Prime Minister and Treasurer, the Hon Wayne Swan, which retains the current market structure for clearing and settlement of cash equities, and requests ASX to put in place a Code of Practice for Clearing and Settlement of Cash Equities in Australia.

ASX is making substantial investments in its clearing and settlement infrastructure. The ASX investments will strengthen Australia’s position in the Asian region and globally, and support Australia’s G20 commitments. The innovations to be launched in calendar year 2013 include the clearing of OTC-traded derivatives and a new service that allows ASX clients to optimise the use of their available collateral.

ASX will work in consultation with industry stakeholders and Australia’s regulators to put in place a Code of Practice for its cash equities clearing and settlement services within the next six months. In accordance with the Treasurer’s announcement, the operation of the Code will be reviewed after two years.

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