I welcome the release today of the Council of Financial Regulators’ (CFR) policy statements on the regulation of Australian cash equities clearing and settlement services, developed in collaboration with the Australian Competition and Consumer Commission. This follows the Turnbull Government’s commitment to opening up competition in this important part of the financial system.
Reforms to the provision of clearing and settlement facilities are part of the Turnbull Government’s competition law reform agenda and will support the competitive settings for a modern, innovative, 21st century economy.
Today’s release of the CFR’s Minimum Conditions for Safe and Effective Competition in Cash Equity Settlement in Australia takes the next step by issuing further policy guidance on competition in financial market infrastructure.
These minimum conditions are designed to provide potential applicants for settlement facility licences with sufficient clarity on the measures that the regulators would consider necessary to support a licence application.
It is important that, as Australia keeps pace with technological developments, we ensure that financial markets operate safely and effectively while delivering world class infrastructure.
As part of reforms to this market, the Government remains committed to developing and consulting on legislation to provide the relevant regulators with rule-making and arbitration powers to apply to clearing and settlement facilities.
The CFR is also releasing its response to consultation on competition in cash equity settlement and revised policy statements on clearing and settlement, available on the CFR’s website.