Clearing services and pricing
ASX is committed to the principles of transparency and non-discrimination in pricing its cash equities clearing and settlement services.
ASX Clear services are provided to clearing participants (who are typically brokers or clearing and custody service providers) and Approved Market Operators. The two key benefits to clearing participants are netting efficiencies and counterparty credit protection. Approved Market Operators benefit from clearing and settlement arrangements for transactions executed on their trading platforms.
ASX Clear is approved as a ‘netting market’ for the purposes of the Payment Systems and Netting Act. This enables the netting of settlement obligations in each individual security, providing greater market efficiency at the time of settlement and reducing participant transaction and funding costs.
The diagram to the right depicts participant A’s trading activity in a single stock. At a gross level, participant A has sold $100 of shares to, and bought $50 of shares from, participant B. Participant A has also sold $30 of shares to, and bought $50 of shares from, participant C. Post novation, participant A’s trades with participants B and C are replaced with trades between participant A and ASX Clear. Post netting, this becomes a net sale of shares for $30 from participant A to ASX Clear.
Through novation, ASX Clear provides protection to non-defaulting clearing participants (and, indirectly, their clients) from a defaulting clearing participant which does not meet its settlement obligations to ASX Clear. Different arrangements apply for different categories of financial product transactions.
Clients, typically investors, should be fully informed and satisfied with the creditworthiness and performance risk of their clearing participant. ASX Clear does not interpose itself between a clearing participant and its clients.
Novation does not change the exposure that clients have if their own clearing participant defaults and cannot meet its obligations to them.
ASX Clear is the central counterparty for products traded on Approved Market Operators. ASX Clear charges participants where a trade is submitted for registration and/or clearing. Different clearing fee rates apply to different categories of cash market products.
Headline cash market clearing fee
| Service | Explanation | Charge |
| Equities | Fee for registration and clearing of cash equity trades | Ad valorem of 0.225bp |
Worked example - headline clearing fee
A transaction of 1,000 shares at $15.15 involving 2 participants is novated by ASX Clear.
The transaction value = 1,000 × 15.15 = $15,150
ASX Clear will charge each participant a transaction clearing fee of 0.225bp of the transaction value.
The clearing fee = 15,150 × 0.00225% = $0.34 per participant.
The fee schedule sets out the fees for cash market clearing services for ASX Clear participants and a brief service description for each of those services. It also provides the details of the ASX cash market clearing revenue sharing scheme.
Participants with queries on the fee schedule should contact EquityPostTrade@asx.com.au
Participants are notified of any fee changes by way of market notice.
If ASX changes cash market clearing and/or settlement fees, participants will be provided with information to assist in their analysis of the impact of clearing and settlement price changes on their total service costs.
Market notices are available via the participant portal on ASX Online. For access contact the ASX Online Help Desk on 1800 663 053 or email.
ASX Clear and ASX Settlement do not discriminate between different participant types with respect to fees and charges.
Under Financial Stability Standard guidelines, ASX is required to publish its policies with respect to any available fee waivers and discounts. Under ASX’s Cash Equities Clearing and Settlement Code of Practice, ASX has committed to provide the details of the applicable terms, conditions and eligibility criteria of any rebates, revenue sharing arrangements and discounts applicable to each cash market clearing and settlement service.
ASX Clear and ASX Settlement are wholly-owned subsidiaries of ASX Limited (ASX) and are responsible for the provision of clearing and settlement services to ASX clearing and settlement participants.
Invoices for clearing and settlement services are issued to clearing and settlement participants monthly in arrears.
