RBA Keeps Pressure on ASX Over Clearing and Settlement Shortcomings

The Reserve Bank of Australia (RBA) has expressed ongoing concerns over the ASX's clearing and settlement facilities, citing shortcomings in governance, risk management, and technology resilience.

In its latest assessment, the RBA found that one or more of the ASX's facilities only 'partly observed' requirements relating to governance, comprehensive risk management, credit risk, and operational risk.

The RBA noted that Austraclear, the ASX's debt securities settlement facility, was rated 'partly observed' against operational risk standards, with further work needed across the ASX clearing and settlement facilities to ensure critical services can be maintained during severe or prolonged disruptions.

ASX has established a Transformation Portfolio to address these deficiencies, but the RBA remains concerned that the exchange operator is still not meeting its expectations in several key areas.