The Reserve Bank of Australia (RBA) has released its Guidance on the Australian Clearing and Settlement (CS) Facility Resolution Regime after consulting with industry stakeholders. The RBA also published a Response to Consultation, which outlines feedback from respondents and explains how it was addressed in the final Guidance.
In June 2025, the RBA issued a consultation paper to gather views on its draft Guidance for the CS Facility Resolution Regime. The document is intended to clarify when and how the RBA might use its resolution powers over Australian CS facilities. It aims to help participants and stakeholders understand the RBA’s general approach to resolution and what potential impacts could arise if these powers are used. The Guidance does not have legal force and does not bind or restrict the RBA from taking any particular action. In cases where there is inconsistency between the Guidance and legislation, the law takes precedence.
Clearing and settlement facilities play a key role in post-trade processes for financial market transactions in Australia. These facilities are licensed by the Australian Securities and Investments Commission (ASIC), which also grants exemptions from licensing requirements. ASIC co-regulates these facilities with the RBA.
Legislative changes occurred in September 2024 when Parliament passed amendments giving new crisis resolution powers to the RBA regarding domestically incorporated CS facilities. These powers allow the central bank to respond if there is a threat to critical clearing and settlement services or financial system stability posed by domestic licensees.
The Reserve Bank of Australia serves as Australia’s central bank, managing gold and foreign exchange reserves, issuing durable banknotes, setting monetary policy targets for inflation, supporting full employment, promoting economic welfare, and overseeing payments system safety through its Payments System Board established in 1998 (official website). Michele Bullock has been governor since September 18, 2023 (official website).
