Consultation on New Financial Stability Standards August 2012

The Reserve Bank has published a consultation paper on a proposal to determine new Financial Stability Standards (FSSs) for central counterparties and securities settlement facilities. The proposed new FSSs aim to align the Australian regime for regulation of clearing and settlement (CS) facilities with new international standards, while upholding the standards to which licensed CS facilities are held under the current FSSs. The proposed FSSs also implement key elements of the Council of Financial Regulators' framework for ensuring that Australian regulators have appropriate influence over cross-border CS facilities.

The consultation paper includes draft guidance, based on the Principles, to aid in interpreting the proposed FSSs, as well as details of the Bank's proposed approach to assessing facilities against the new FSSs.

The Bank is seeking written submissions from interested parties on the proposed FSSs. In addition, the Bank will be conducting stakeholder meetings for parties wishing to discuss their views on the proposal in person.