RLM is the system that ASX Clear and ASX Clear (Futures) participants must use to prepare and lodge capital returns as required under the ASX Clear and ASX Clear (Futures) Operating Rules.  The system has been in use since April 2010.

ASX has now commenced a project to replace the RLM system.  The driver for this is to provide additional benefits to both clearing participants and ASX’s CCPs whilst retaining the core features of the current RLM system which include:

·       Provision of a secure platform for the creation, authorisation and submission of returns;

·       In built validation features to help reduce the number of reporting errors;

·       Versioning control functionality to enable an audit trail to be maintained of all submitted versions of returns;

·       System generated emails upon return submission or rejection.

While the detailed requirements for the new system are still being determined, ASX can advise that the following operational changes are likely:

·       User access will be managed via the ASX Online customer portal.  This will enable a user to have a single login regardless of how many participant entities they represent (whereas with RLM a separate account is required for each participant entity the user represents).  An additional benefit is that ASX Online passwords do not expire (whereas passwords for RLM accounts expire every 90 days).

·       The business activities return (for ASX Clear participants) will be incorporated in the new system to replace the current paper-based return.

·       Changes to signatory requirements for ASX Clear (Futures) net tangible asset (NTA) returns to align with the signatory requirements for ASX Clear returns.  Only company directors will be able to sign off on returns; authorised signatories will no longer be accepted.  Monthly and ad hoc NTA returns will need to be signed off by one director, while annual audited NTA returns will need to be signed off either by two directors or by one director in accordance with a board resolution (in which case the date of the board resolution must be specified).

·       Ability to submit other documents to ASX that are currently submitted via email (eg auditor’s reports and statutory accounts that form part of annual reporting requirements).

In addition, functionality to enable automated data input is being explored with the intention that, after go-live of the new system, participants will be able to start assessing and planning for its use on an opt-in basis.

Changes to the content of returns are also likely:

·       For ASX Clear participants, the ad hoc return will be expanded to include more data fields and the summary capital liquidity return will be discontinued.  The returns for ASX Clear participants will also be changed such that they incorporate the rule amendments (moving to a single capital measure) as outlined in the January 2022 response to consultation.  Changes to the income statement, balance sheet, balance sheet details and some of the risk requirement screens in the capital liquidity return and annual audited return are also anticipated.

·       For ASX Clear (Futures) NTA returns, significant changes are likely such as the inclusion of an income statement, restructured NTA summary screen and removal of certain sections such as those requiring details of directors and shareholders.  The system will also be changed such that it will no longer be necessary to go into each screen and save even if there is no data to be entered.

ASX Clear participants will note ASX’s advice in the January 2022 response to consultation paper that implementation of the rule amendments to move to a single capital measure was subject to regulatory clearance but was also dependent on RLM system changes to support the new rules.  Once regulatory clearance has been obtained, ASX intends to publish the rules for participants’ awareness.  However, ASX’s intention is that the new rules will not take effect until the later of six months after publication and the implementation date of the new returns system.  In this way, participants will be given a minimum of six months’ notice before having to comply with the new rules, as originally flagged in the October 2020 consultation paper.

The timing for implementation of the new system is not yet confirmed but is currently targeted to be in the second quarter of 2024.

ASX intends to provide participants with updates on this project via market notice or email as appropriate.

What do I need to do by when?

N/A

Need more information?

Issued by

Colm Grace
General Manager, Clearing Risk Management & Policy

Contact information

Marisa Khan
+61 (02)  9227 0633
CRAteam@asx.com.au

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