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Notice
Amendments to ASX Settlement Operating Rules – removal of rules and procedures related to registering as a Securities Lending Participant and reporting of certain securities lending activity.
ASX Settlement has formally lodged with ASIC amendments to the ASX Settlement Operating Rules (ASXSORs) to remove certain requirements on Settlement Participants relating to securities lending activity undertaken by them or their related body corporates.
Those requirements were introduced in 2009 and support the publication by ASX Settlement on an aggregated basis of securities lending data in compliance with obligations under the Financial Stability Standards for Securities Settlement Facilities (FSS), specifically Standard 18.3.
The rule amendments are intended to become effective on 22 September 2025 (subject to regulatory clearance). As from that time, ASX Settlement Participants that engage in, or have non-participant related body corporates that engage in, securities lending activity will no longer be required to:
• be registered as a Securities Lending Participant (ASXSOR 6.8A.4);
• report daily loaned and borrowed positions (ASXSOR 6.8A.5);
• report quarterly committed positions (ASXSOR 6.8A.5).
ASX Settlement is retaining requirements that messages submitted to CHESS by Settlement Participants to transfer financial products must identify if the transfer relates to a securities lending transaction (ASXSOR 6.8A.1).
The amendments to the ASXSORs are shown in mark-up below:
Industry engagement
ASX Settlement engaged with its Settlement Participants on the ongoing appropriateness and relevance of its existing securities lending reporting requirements and publications.
Feedback received from industry confirmed significant technology investment to support the securities lending reporting requirements, compliance challenges with the securities lending reporting requirements, non-utilisation by the industry of ASX published securities lending data, and alternative settlement risk indicators and data sources preferred by industry.
Noting the alternative settlement risk indicators and data sources being used, ASX is modifying the ASXSORs to relieve Settlement Participants from the burdens and challenges identified by them in connection with the existing securities lending reporting requirements.
ASX publication of Securities Lending Data
As a result of the rule amendments, ASX Settlement will no longer publish outstanding borrowed and loaned positions, history of daily market reports, and securities lending participation reports on an aggregated basis across Settlement Participants.
ASX will continue to publish data based on transfer messages submitted to CHESS that have been tagged as relating to a securities lending transaction.
What do I need to do by when?
Effective 22 September 2025 (subject to regulatory clearance), ASX Settlement Participants that engage in, or have non-participant related body corporates that engage in, securities lending activity will no longer submit daily and quarterly securities lending reporting to ASX Settlement.
Settlement Participants must continue to identify if transfer messages submitted to CHESS relate to a securities lending transaction.
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Issued by
Participants Compliance