This Market Notice advises Austraclear Participants that the new Linked Settlement functionality and Market repo enhancements will be available from 1 March 2021. Amendments to the Austraclear Regulations required to introduce the new Linked Settlement functionality and Market Repo enhancements have received regulatory clearance and will take effect on this date.

Austraclear Participants are advised that the new Linked Settlement functionality and Market repo enhancements will be available from 1 March 2021. Amendments to the Austraclear Regulations required to introduce the new Linked Settlement functionality and Market Repo enhancements have received regulatory clearance and will take effect on this date. A copy of the amendments to the Austraclear Regulations is attached.

The Linked Settlement functionality will allow Austraclear Participants to link a group of eligible transactions in a linked settlement group for simultaneous settlement by transfer of the net amount of cash and securities required to settle all transactions in that linked settlement group.  The linked settlement functionality will require the same two Participants to be a party to all transactions in a linked settlement group, and for both Participants to agree for it to proceed to simultaneous settlement. Linked settlement functionality will only be offered for transactions in Australian currency at this time.

The market repo enhancements will provide Austraclear Participants with additional flexibility in entering instructions in the Austraclear system to settle the second leg of a market repo transaction (otherwise known as the ‘unwind’ of the market repo transaction). The two enhancements are as follows:   

·         Automatic unwind: This functionality will allow a Participant to make an election in the system so that on the Settlement Date for the second leg of a market repo, the system will automatically enter a settlement instruction for that second leg on behalf of the Participant if it has not already received a manual settlement instruction from the Participant. Participants can elect to use this functionality within the Austraclear GUI.

·         Instruct unwind with future close date: This functionality will allow a Participant to enter an instruction to settle the second leg of a market repo transaction either before or after the first leg of that same market repo transaction has settled. In practice, we expect that Participants will use this functionality to enter a settlement instruction for the first leg and second leg of a market repo at the same time.

Austraclear Participants are also advised that a revised Austraclear System User Guide, that includes the Linked Settlement functionality and Market Repo enhancements, will take effect on 1 March 2021. A copy of the revised Austraclear System User Guide is attached and will also be published on the ASX website on 1 March 2021.   

Need more information?

Issued by

John Pearce, Head of Settlement & Collateral

Contact information

Should you have additional queries, please direct these through to the Austraclear Service Desk on 1300 362 257 or via email to Austraclear@asx.com.au

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