Financial Stability Standards for Securities Settlement Facilities – December 2012 Introduction for Guidance
Note: The headline standard and numbered ‘sub’-standards determined under section 827D(1) of the Corporations Act 2001 have been formatted in bold text while the guidance to these standards has been formatted as plain text. For more information see the Introduction for Standards and Introduction for Guidance. Although the Reserve Bank has taken due care in compiling this page, the published version of the Standards and Guidance should be used in the case of any differences between the two.
This guidance is issued in relation to the Financial Stability Standards for Securities Settlement Facilities (SSF Standards) determined under section 827D(1) of the Corporations Act 2001 (the Act). The SSF Standards apply to all holders of an Australian Clearing and Settlement (CS) Facility Licence, under Part 7.3 of the Act, that operate a securities settlement facility. Separate financial stability standards apply to CS facility licensees that operate a central counterparty. For the purposes of the SSF Standards, a securities settlement facility is a CS facility operated by an Australian CS facility licensee where the CS facility licensee enables its participants to transfer title to or other interests in securities, typically in return for payment. A securities settlement facility may also operate a central securities depository. Unless the contrary intention appears, obligations on a securities settlement facility arising from the SSF Standards should be interpreted as being obligations on the CS facility licensee, as operator of the securities settlement facility.
The objective of this document is to provide guidance to securities settlement facilities to assist in the interpretation and application of the SSF Standards, and to elaborate on matters that the Reserve Bank of Australia (Reserve Bank) considers relevant in meeting the SSF Standards. The guidance contains general information in relation to certain matters concerning the SSF Standards and applicable legislation, but is not intended to be exhaustive. It does not elaborate on all aspects of the SSF Standards, and should therefore be read in conjunction with the text of the SSF Standards to provide appropriate context. The guidance does not itself constitute a standard and is not intended to contain obligations that are binding on securities settlement facilities; nor does it constitute legal advice and should not be treated as such. The Reserve Bank encourages users to obtain independent professional advice in relation to the SSF Standards and relevant legislation as they apply to the users and their particular circumstances.
Note: This guidance is based largely on the Committee on Payment and Settlement Systems (CPSS) and the Technical Committee of the International Organization of Securities Commissions (IOSCO) Principles for Financial Market Infrastructures (FMIs) (the Principles).[1] The Reserve Bank has, in parts, added to and amended the text of the Principles and associated explanatory notes.[2]
Footnotes
CPSS-IOSCO (2012), Principles for Financial Market Infrastructures, CPSS Publications No 101, Bank for International Settlements, April, is available at <http://www.bis.org/publ/cpss101.htm>. [1]
A marked-up version of this guidance, indicating where additions and alterations have been made to the text of the Principles, will be made available at <https://www.rba.gov.au/payments-and-infrastructure/financial-market-infrastructure/clearing-and-settlement-facilities/standards/201212-new-fss-ris/> by end 2012. [2]