New returns system

ASX advised in a market notice published on 8 September 2023 that it was working on replacement of the Return Lodgement and Monitoring (RLM) system.  RLM is the system that non-bank 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. ASX advises that the go-live date for the replacement to RLM, named Financial Returns Application (FRA), will be 21 February 2025.

The commencement dates for use of FRA for the various return types are as follows:

·   Monthly returns (capital liquidity return for ASX Clear participants or NTA return for ASX Clear (Futures) participants) – February 2025 return  will be the first return submitted using FRA.

·   Annual returns – all returns dated 21 February 2025 onwards are to be submitted using FRA.  December 2024 annual returns are to be submitted using RLM in order to facilitate comparison with the corresponding monthly return.

·   Ad hoc returns – all returns dated 21 February 2025 onwards are to be submitted using FRA.

·  Business activities returns (only relevant for ASX Clear participants) – returns for the March 2025 quarter and onwards are to be submitted using FRA. A participant that has self-declared materiality for both own account business and non-ASX client activity prior to the implementation of FRA will not be required to submit the business activities returns in FRA.

There will be no change to the due dates for returns.

There will be no change to the signatory requirements for ASX Clear returns.  Signatory requirements for ASX Clear (Futures) returns will change in FRA such that 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).

Training sessions for FRA are being organised, details of which have been communicated separately to participants.  Details on how user access is to be obtained will be provided in late January/early February.

ASX intends to deactivate RLM user accounts after submission of each participant’s final return in the RLM system.  The timing of this will vary depending on the participant’s financial year end.  Participants that wish to save PDF copies of their RLM returns for their records are encouraged to start doing so.

ASX is in the process of updating guidance documents such as the Capital Liquidity Handbook and Capital Requirements Guidance to reflect the introduction of FRA and the ASX Clear rule amendments noted below.  It is anticipated that these documents will be published on or around 21 February 2025.

ASX Clear rule amendments

As previously advised, implementation of the amendments to the capital rules to implement a single capital measure for non-bank ASX Clear participants was dependent on implementation of the RLM system.  Therefore, these rule amendments will now take effect on 21 February 2025.

Full details of these rule amendments are available in the market notice published on 13 December 2023.

What do I need to do by when?

All non-bank clearing participants should ensure they continue their preparation and planning so as to be able to complete returns in the new formats, as per the spreadsheet mock-ups previously provided via email.

ASX Clear participants should ensure they take action as necessary to ensure compliance with the new rules effective from 21 February 2025 and to update any systems, spreadsheets or documentation as needed.

Need more information?

Issued by

Colm Grace, General Manager, Clearing Risk Policy & Credit

Contact information

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

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