Financial market infrastructure regulatory reforms: Response to Consultation and Advice to Government

The Treasurer announced today that the Government will introduce reforms to the regulation of financial market infrastructures (FMI). FMIs are the key entities that enable, facilitate and support trading in Australia's capital markets. FMIs include financial market operators, benchmark administrators, clearing and settlement facilities and derivative trade repositories.

The Council of Financial Regulators (CFR) strongly supports these reforms. They include enhancements to the licensing regimes for FMIs and stronger supervision and enforcement powers for the regulators, the Australian Securities and Investments Commission and the Reserve Bank. The reforms also include crisis management and resolution powers over Australian clearing and settlement facilities.

In 2019, the CFR consulted on a range of measures to enhance the regulation of FMIs: Financial Market Infrastructure Regulatory Reforms – Consultation Paper. Following the consultation process, the CFR provided advice to the Government recommending a package of reforms so that the Australian financial system is supported by resilient, efficient and stable FMIs.

The CFR's Advice to Government and its Response to Consultation are now available on the CFR website.