Media Release Payments System Board Update: February 2016 Meeting

At its meeting today, the Payments System Board discussed a number of issues including:

• Review of Card Payments Regulation: the Board discussed the submissions received in response to its Consultation Paper, focusing on issues that Bank staff will be addressing in meetings with relevant stakeholders to discuss their submissions in more detail. On surcharging, the Board noted that the Government's legislation relating to excessive surcharging has passed the House of Representatives and is scheduled to go to the Senate in the autumn sittings. The Board discussed a possible timeline for concluding the Review, with the expectation that it would be able to make a decision at the May 2016 meeting. The Board recognised that an implementation period will be necessary for any changes to its Standards, and noted that stakeholder submissions have included a wide range of suggestions for an appropriate transition time.
• 2014/15 Assessment of Chicago Mercantile Exchange Inc (CME): The Bank's 2014/15 assessment of CME will be published once the Bank has shared the report with overseas counterparts with a supervisory interest in CME, and after the assessment has been provided formally to the Assistant Treasurer and the Australian Securities and Investments Commission. This is the Bank's first assessment of CME since it was licensed in Australia to clear over-the-counter derivatives and certain exchange traded futures in September 2014.
• ASX recovery planning: Further to a recommendation in the Bank's 2014/15 Assessment of licensed clearing and settlement facilities in the ASX group, ASX recently consulted on enhancements to its plans for replenishment of financial resources should they be drawn down in a default event. The Board considered the staff's assessment of ASX's proposed enhancements. This assessment will be reflected in the Bank's advice to the Minister on associated rule changes.