AUSTRALIA: Recovery Rules for ASX Clear and ASX Clear (Futures)

Thursday October 1 2015

ASX has announced the introduction of recovery rules for ASX Clear and ASX Clear (Futures) effective Thursday 1st October 2015.

New and amended operating rules which enhance the ability of ASX Clear and ASX Clear (Futures) to recover from extreme stress scenarios have become effective, including rules relating to:

• allocation of uncovered credit losses and liquidity shortfalls arising from a clearing participant default
• replenishment of their financial resources following a clearing participant default
• allocation of investment losses incurred by ASX Clear and ASX Clear (Futures).

These new and amended operating rules are required to comply with domestic and international regulatory requirements applicable to ASX Clear and ASX Clear (Futures). ASX developed the rules through extensive consultation with its customers and regulators.

Click on the link above for further details.