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Council of Financial Regulators Working Group

Financial Market Infrastructure Regulation

On 8 April 2011 the Deputy Prime Minister and Treasurer, the Hon. Wayne Swan MP, referred a number of issues relating to financial market infrastructure regulation to the Council of Financial Regulators (the Council).

The Treasurer asked the Council for advice on measures which could be introduced to ensure Australia’s regulatory system for financial market infrastructure continues to protect the interests of Australian issuers, investors and market participants, including under a scenario where ASX is part of a foreign-domiciled group.

To this end, a Working Group has been established, chaired by the Treasury, and comprising representatives of the Australian Prudential Regulation Authority, Australian Securities and Investments Commission, and Reserve Bank of Australia.

The issues to be addressed include but are not limited to the adequacy of oversight, powers of direction and crisis management arrangements for market operators and clearing and settlement facilities. The Working Group will not be addressing the regulation of payment systems or of trade repositories.

The Working Group released a Consultation Paper seeking stakeholder views on 21 October 2011.

Submissions closed on 2 December 2011. Twenty-two submissions were received, of which 18 were public and 4 were confidential.

On 30 March 2012 the Deputy Prime Minister and Treasurer released the Council’s letter of advice in relation to the review. Treasury sought further comments from stakeholders and interested parties to inform the development of a final policy framework based on the Council recommendations.