ASX Welcomes Clearing And Settlement Facility Bill

ASX notes and welcomes the Government's announced intention to introduce legislation that will facilitate the reforms to ASX's clearing infrastructure that were foreshadowed in November 2002. These reforms will include the creation of a new body, the Australian Clearing House, which will serve as a more capable and more flexible counterparty, better able to manage risks across markets.

The legislation, the Taxation Laws (Clearing and Settlement Facility Support) Bill 2003, concerns the proposed transfer of funds from the National Guarantee Fund under Section 891A of the Corporations Act.

As foreshadowed by ASX in November 2002, ASX has sought Ministerial approval for the transfer to ACH commensurate with the clearing guarantee liabilities it will be taking on.

ASX also understands a period of public consultation will occur before any Ministerial decision is made.