The ASX Cash Equities Clearing and Settlement Code of Practice (Code of Practice) sets out ASX’s commitments to comply with the Council of Financial Regulators’ Regulatory Expectations for the Conduct of Cash Equity Clearing and Settlement Services in Australia, and its commitment to users in managing cash equities clearing and settlement infrastructure and services for the Australian market. This includes the role of the Business Committee as a mechanism for input into ASX’s governance framework. In April 2024 the Code of Practice was updated to also reflect the function of the ASX Cash Equities Clearing and Settlement Advisory Group (Advisory Group) convened in September 2023 as a further stakeholder forum for input on strategic matters relating to clearing and settlement services and associated infrastructure, the associated regulatory expectations introduced at that time, and the interaction of the Business Committee with the new Advisory Group.
Role of the Business Committee
The role of the Business Committee is to provide:
- input for consideration by ASX Management and the Boards of ASX Clear and ASX Settlement on the ongoing operation of cash equities clearing and settlement infrastructure and services provided by ASX;
- input for consideration by ASX Management and the Boards of ASX Clear and ASX Settlement on setting the ASX investment strategy for cash equities clearing and settlement infrastructure and services development, and the system design, operational arrangements and implementation plan for new cash equities clearing and settlement infrastructure and services provided by ASX;
- advice to ASX Management to assist in progressing cash equities clearing and settlement initiatives of interest to the industry, with the aim of facilitating service innovation and improving overall market efficiency; and
- a mechanism for ASX Management and the Boards of ASX Clear and ASX Settlement to consult clearing participants, settlement participants and other market operators regarding their strategic plans and investment decisions in relation to the design, operation and development of the core clearing and settlement infrastructure and services for the Australian cash equities market.
The Business Committee comprises representatives of clearing participants, settlement participants, approved market operators, other relevant stakeholders and their associated industry organisations. The objective for the Business Committee is for it to comprise executives with a deep understanding of clearing and settlement, for example, Chief Operating Officers.
