RESERVE BANK OF AUSTRALIA
 

Corporations Act 2001

Notification of revocation and determination of Standards 7.3, 7.9, 13.1, 13.2 and 13.3 of the Financial Stability Standards for Central Counterparties

The Reserve Bank of Australia (Reserve Bank) gives notice:

1. under paragraph 827D(9)(a) of the Corporations Act 2001 (the Act) that the Reserve Bank has, pursuant to subsection 827D(8) of the Act, revoked Standards 7.3, 7.9, 13.1, 13.2 and 13.3 (Existing Sub-Standards) of the Financial Stability Standards for Central Counterparties determined on 10 December 2012 (CCP Standards), with effect on  20 February 2013; and

2.      under paragraph 827D(7)(a) of the Act that on 20 February 2013 pursuant to subsection 827D(1) of the Act, the Reserve Bank determined financial stability standards identical in content to the Existing Sub-Standards (New Sub-Standards) which are each incorporated into the CCP Standards in the place indicated by their numbering.

In accordance with paragraph 827D(5)(a)(ii) of the Act, the New Sub-Standards come into effect on 31 March 2014.

Purpose and effect

The Existing Sub-Standards were due to come into force on 29 March 2013. Upon the application of the existing clearing and settlement (CS) facility licensees that operate a central counterparty, the Reserve Bank agreed to grant transitional relief in respect of the Existing Sub-Standards such that the date they come into effect is deferred until 31 March 2014. The Reserve Bank granted this relief on the basis that compliance with the Existing Sub-Standards necessitates significant, industry-wide change as well as there being external dependencies to achieving compliance.  

The purpose of the revocation of the Existing Sub-Standards (the Revocation) and the determination of the New Sub-Standards (the Determination) is to implement the Reserve Bank’s decision to grant transitional relief in respect of the Existing Sub-Standards. The Revocation and Determination are necessary due to the operation of subsection 827D(5) of the Act which determines when a financial stability standard comes into force.

The combined effect of the Revocation and Determination is that the date on which the Existing Sub-Standards come into effect is delayed by approximately 12 months to 31 March 2014. The Revocation and Determination do not have the effect of changing the substantive obligations of CS facility licensees under the CCP Standards.

The New Sub-Standards are incorporated into the CCP Standards in the place of the Existing Sub-Standards. Copies of the CCP Standards (incorporating the New Sub-Standards) and associated guidance are available on the Reserve Bank’s website at www.rba.gov.au.

Signed

Glenn Stevens
Governor
Reserve Bank of Australia

22 February 2013