The decision by the RBA to cease providing electronic settlement services for CGS transactions and the subsequent transfer of these portfolios to SFE Austraclear is in keeping with the industry-wide trend of consolidation of major clearing providers globally. In Australia it means that all wholesale electronic transactions in Australian debt securities are now carried out on the Austraclear System.
"The transfer of CGS to SFE has followed a lengthy period of consultation with market participants," said Martin Stockely-Smith - General Manager of SFE Clearing. "Now the process of moving the securities is completed we look forward to delivering the benefits of this consolidation to our customers."
These potential benefits include lower fees, greater processing efficiencies and improved settlement management through SFE Clearing. The move also facilitates the use of new products and services made available from SFE, such as Bond and Repo Clearing (the utilisation of Central Counter Party Clearing (CCP) for Australian Bonds and Repos.) These developments also have considerable national significance. "Australia has consistently been placed in the top five providers of clearing and settlement services in the world," commented Mr Robert Elstone, CEO and Managing Director of SFE Corporation Limited. "The transfer of Commonwealth Government Securities to Austraclear is significant in that it provides an important building block to ensure the continued competitiveness of SFE as a leading service provider within the global clearing community."
Importantly the RBA will continue to provide real-time gross settlement facilities for interbank payments through RITS, conduct tenders for CGS and provide registry services for these securities.
