Govt flags clearing and settlement competition
The Federal Government has flagged legislation in 2023 aimed at opening up competition in the clearing and settlement of cash equities, including giving more powers to the Australian Securities and Investments Commission (ASIC) and the Australian Competition and Consumer Commission (ACCC).
Just weeks after the controversy surrounding the CHESS replacement regime for the Australian Securities Exchange (ASX), the Government said it would be providing the Reserve Bank with powers to step in and resolve a crisis at a domestic clearing and settlement facility.
The Government statement issued by the Treasurer, Jim Chalmers said the Albanese Government supported competition in the clearing and settlement of cash eq uities.
“We will introduce legislation to facilitate competitive outcomes, should a competitor emerge and in the event of ongoing monopoly provision, in clearing and settlement by providing ASIC and the ACCC with additional powers,” it said.
“Rule-making powers will allow ASIC, with ministerial approval, to quickly act to make rules to manage matters related to competition, such as pricing, access, governance arrangements and interoperability.
“Together, these powers will set minimum, enforceable conditions to facilitate a competitive environment for clearing and settlement.”
The statement said the Government would also be taking action to improve regulation of crypto service providers with the next steps in the Government’s ongoing ‘token mapping’ work to include the release of a consultation paper early next year to inform what digital assets would be regulated by financial services laws, and the development of appropriate custody and licensing setting to safeguard consumers.
“Rule-making powers will allow ASIC, with ministerial approval, to quickly act to make rules to manage matters related to competition, such as pricing, access, governance arrangements and interoperability.
This can’t be good