SFE Clearing House Appoints New Chairman - Clearing House Granted An Exchange Settlement Account

Mr Ian Payne is the new Chairman of the Sydney Futures Exchange Clearing House (SFECH), a wholly owned SFE subsidiary. Mr Payne, 57, joined the SFECH Board as an Independent Director in April 1998. He replaces Michael Sheehan in the chair. Mr Payne is a Director and Chairman of a number of corporations. In July 1997 he retired from the position of Executive Director and Deputy Chief Executive of the Commonwealth Bank of Australia (CBA). His career at CBA spanned 38 years. Mr Payne also joins the Board of SFE, replacing Mr Bruce Hudson as an Independent Director. Mr Hudson has stepped down after 16 years service on SFE group boards, including a 10-year reign as SFE Chairman from October 1989 to April 1999. Mr Payne assumes the SFECH chairmanship at a time when the integrity and faultless reputation of the Clearing House are being recognised. Last week, the Reserve Bank of Australia approved SFECH's application to operate an Exchange Settlement Account (ESA). ESAs are the means by which providers of payments services settle obligations which they have accrued in the clearing process. Those seeking approval must demonstrate operational capacity and adequate liquidity. The award of an ESA to SFECH is a first. Until now, only banks or special service providers for building societies and credit unions have held such accounts. With an ESA, SFECH can receive funds directly into its own account, avoiding the need for intermediary banks, thereby reducing operational costs and improving clearing efficiency.