ASX advises that it is revising Key Requirement 4.6 – Recovery time objective as set out in Guidance Note 10 Business Continuity and Disaster Recovery (‘GN 10’), published on 20 December 2019.

ASX conducted a GN 10 Gap Analysis Review (‘Review’) to assess how participants of ASX Clear, ASX Clear (Futures) and ASX Settlement have aligned their arrangements with GN 10 and to obtain details on participants’ plans to meet the recovery time objectives (‘RTO’). As part of the review, ASX received feedback that some participants are facing challenges with meeting the RTO due to a range of factors, including the impact of the COVID-19 pandemic on resources and projects.

While some participants have aligned their arrangements with the RTO, or have plans in progress to work towards the RTO, other participants indicated they needed additional time to complete their respective changes. Additionally, a small number of participants advised that the global, interconnected nature of their infrastructure and frameworks create significant challenges with meeting the RTO.

In response to the feedback, and acknowledging the impact of COVID-19 on the industry, ASX has determined that it is appropriate to revise the RTO requirements and GN 10 Key Requirement 4.6 has been updated accordingly. The changes increase the RTO from 2 hours for Tier 1 participants to a minimum standard of 4 hours, while encouraging participants to target a 2 hour RTO for critical ASX related operations. For Tier 2 participants, the RTOs are a minimum standard of 6 hours and a target of 4 hours respectively.

ASX will revisit Key Requirement 4.6 again following the completion of the CHESS Replacement system and in the meantime, will engage in further discussions with regulators as part of the increasing global focus on maintaining and improving operational resilience of financial markets.

Key Requirement 4.15 – Notification requirements (for participants of ASX Clear, ASX Settlement and ASX Clear (Futures) has also been updated to assist participants to identify the correct ASX Online Participant Form for notifying ASX of breaches of, or non-compliance with, the disaster recovery and business continuity requirements in GN 10, or the capacity to communicate reliably with CHESS or the Derivatives Clearing System.

Please see the revised GN 10 for the following:

• ASX Settlement
• Austraclear
• ASX Clear
• ASX Clear Futures

What do I need to do by when?

We encourage participants to read the relevant Guidance Note and plan to work towards a target RTO of 2 hours for ASX critical operations for Tier 1 participants and 4 hours for Tier 2 participants.

Need more information?

Issued by

Lyn Allsop-Guest
Manager, Participants Review

Contact information

Lyn Allsop-Guest
participants.review@asx.com.au
+61 (02) 9227 0000

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