On Feb. 25, 2025, AST ASIC said the new rules require ASX to provide its CS services on a fair basis, and publish a comparison of fees against international providers.
Highlighted key features of the rules detailed above and said they support the long-term confident and informed participation of investors in Australian financial markets, by establishing clear obligations to promote competitive outcomes in CS services.
ASIC has also published a report titled Response to submissions on CP 379 ASIC CS services rules (REP 808), highlighting key feedback from the submissions on CP 379.
On Jul. 30, AST ASIC proposed clearing and settlement services rules.
AST ASIC released a consultation paper on proposed rules to facilitate competitive outcomes in cash equity clearing and settlement (CS) services by the ASXGroup.
In respect of governance requirements, including user input to governance; transparent, non-discriminatory, and fair and reasonable pricing of CS services.
In addition, commercial, transparent, and non-discriminatory access to CS services.
Impose additional requirements in key areas, i.e. interoperability of core systems; management of intragroup conflicts of interest; international pricing comparison.
Coverage of associated entities; commitments regarding Clearing House Electronic Subregister System (CHESS) replacement; publication of management accounts.
Plus, external review of CS service provider’s model for the internal allocation of costs.
According to the explanatory statement, the submissions on the consultation above were broadly supportive of CS services rules; revised rules reflect feedback received.
Instrument commences 3 months post registration day, i.e. commences May 24, 2025.
Transitional provision that CS service provider does not need to comply with rules 2.1.3, 2.4.4, until 6 months after day this instrument is registered, i.e. Aug. 24, 2025.
Feb. 25, 2025 AST ASIC Comments
On Feb. 25, 2025, AST ASIC said the new rules require ASX to provide its CS services on a fair basis, and publish a comparison of fees against international providers.
Highlighted key features of the rules detailed above and said they support the long-term confident and informed participation of investors in Australian financial markets, by establishing clear obligations to promote competitive outcomes in CS services.
ASIC has also published a report titled Response to submissions on CP 379 ASIC CS services rules (REP 808), highlighting key feedback from the submissions on CP 379.
