Consultation on Central Clearing of Bonds and Repos in Australia – July 2024

The Council of Financial Regulators (CFR) has today released a consultation paper on reassessing the case for central clearing of bonds and repos in Australia.

There have been considerable changes in the size and structure of the Australian bond and repo markets in recent years. Recent analysis by Reserve Bank of Australia (RBA) staff indicates that the potential benefits of central clearing in these markets has increased, and that the case for central clearing may be stronger than previously assessed by the RBA in 2015.

The CFR is seeking feedback from stakeholders on the magnitude of any costs and benefits that may accrue from the introduction of a CCP in the Australian bond and repo markets. Feedback is also sought from stakeholders to understand the circumstances under which a bond and repo CCP could be operated safely and efficiently by an overseas operator and what additional protections may be required in such a scenario.

Interested parties are invited to make submissions on the issues raised in the consultation paper or any other matters they consider to be relevant. The closing date for submissions is 4 September 2024. Submissions can be sent to: CSSubmissions@rba.gov.au