ASIC today released regulatory guidance on its approach to the licensing and regulation of clearing and settlement (CS) facilities.

ASIC’s Regulatory Guide 211 Clearing and settlement facilities: Australian and overseas operators (RG 211) has been released in anticipation of more CS facilities seeking to operate in Australia. It responds to international regulatory developments promoting the use of central counterparty (CCP) clearing and settlement of over-the-counter (OTC) derivative transactions.

RG 211 provides guidance on:

• when an Australian CS facility licence will be required;
• how to apply for a CS facility licence; and
• ASIC's approach to exemptions.

ASIC believes that more specific guidance on the approach we will take to the regulation of CS facilities will assist entities who provide, or who may want to provide, CS facilities in Australia.

A consistent and clear policy is appropriate to give prospective CS facility licence applicants guidance on what we are looking for in considering their applications, providing advice to the Minister and helping entities comply with their obligations after they obtain a licence.

Further details are available at ASIC.