In July 2017 ASX issued a consultation paper on draft amendments to the ASX Clear Operating Rules, ASX Clear Operating Rules Procedures, Capital Liquidity Handbook and revised Business Activities Return (BAR) in relation to the proposed changes to the approach for clearing participant minimum core capital requirements (MCCR). ASX received 3 responses from clearing participants however none of these provided feedback on the proposed amendments to the Rules and Procedures and other documents.
ASX will now proceed with the proposed changes to the MCCR. The Rule and Procedure amendments to implement this change will be effective on 15 December 2017. Participants will not be required to meet any increased core capital requirement under the new approach until 1 January 2019.
The changes to the ASX Clear Operating Rules and Procedures can be found here. The updated Capital Liquidity Handbook will be issued in early January 2018.
Participants are also advised that the BAR is now a prescribed return under ASX Clear Operating Rule S1.3.1. Participants are required to provide ASX with a completed BAR within 15 business days after the end of each quarter ending in March, June, September and December. As the rule amendments become effective on 15 December 2017, all participants that are subject to the Risk Based Capital Requirements are required to provide ASX with their BAR for the December 2017 quarter by 22 January 2018. This return will form part of ASX’s formal assessment of each participant’s new core capital requirement during the initial 12 months following the rule amendments taking effect. Due dates of BARs for the next 12 months can be found in the implementation timeline of the MCCR approach which was included in the July 2017 consultation paper and is re-attached here.
ASX Clear Participants that are subject to the Risk Based Capital Requirements should familiarise themselves with these rule and procedure amendments and submit a BAR for the December 2017 quarter to ASX by 22 January 2018. The BAR should be emailed to CRAteam@asx.com.au. The BAR can be found here.
Colm Grace, General Manager, Clearing Risk Policy Management
Marisa Khan, Danica Zagorsky
1800 636 850