There are a number of regulatory changes that will impact clearing and settlement in Australia. The Australian Securities and Investments Commission (ASIC) is drafting an updated regulatory framework for clearing and settlement in Australia. The new guidance will address international principles and cross-border policy. It is expected to take effect at the end of 2012.

A key change that will affect clearing and settlement in Australia is the introduction of distributed ledger technology. Australian regulators have recently issued a paper addressing the issue. The paper proposes a graduated approach to the regulation of CS facilities. The first step is to establish requirements for CS facilities based on their importance, such as meeting the financial stability standards of the Reserve Bank of Australia. A second step involves imposing additional controls on CS facilities that are systemically important.

Among the clearing facilities in Australia. Finclear provides clearing management for derivatives traded on its Finclear 24 market. It also provides clearing services for commodities, interest rate, and equity futures and options. The clearing house is the central counterparty for the trading of the securities. It is required to have adequate financial resources to meet the needs of clearing participants. Finclear also conducts daily testing of its financial resources.