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Competition in the clearing and settlement of the Australian cash equity market

Key documents

The Deputy Prime Minister and Treasurer has released a Council of Financial Regulators (Council) discussion paper which examines competition in the clearing and settlement of the Australian cash equity market.

The paper has been prepared with contributions from the Australian Securities and Investments Commission (ASIC), the Reserve Bank of Australia (RBA), the Commonwealth Treasury and the Australian Competition and Consumer Commission (ACCC).

In the course of the Council review of Financial Market Infrastructure regulation, the issue of competition in clearing and settlement (CS) arose. The Council subsequently invited the ACCC to work with ASIC, the RBA and the Commonwealth Treasury to further develop analysis on the competition aspects of clearing and settlement.

The paper sets out a preliminary assessment of the issues that might need to be addressed to ensure that competition between providers of clearing and settlement services does not adversely impact the effective functioning of the market for ASX securities or the stability of the Australian financial system. The paper also discusses competition and access issues that could arise when considering the existing post trade market structure for ASX securities, and how these might, in principle, be addressed.

The Council will be conducting stakeholder meetings during an eight-week consultation period. Should you wish to arrange a meeting, contact Treasury by 29 June 2012.

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