Corporations Regulations 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS  

PART 7.3 - LICENSING OF CLEARING AND SETTLEMENT FACILITIES  

Division 4 - The Australian CS facility licence: applications (general)  

REGULATION 7.3.10  

7.3.10   INFORMATION  
For paragraph 824A(1)(a) of the Act, the following information is required as part of an application by the body corporate for an Australian CS facility licence:

(a)    the body corporate ' s name, address and contact details;

(b)    the name, address and contact details of any person who will act on behalf of the body corporate in relation to the application;

(c)    details of the body corporate ' s major shareholders and organisation, including:

(i) the name, address and contact details of each director; and

(ii) the name, address and contact details of each secretary; and

(iii) the name, address and contact details of each executive officer of the body corporate; and

(iv) whether any director, secretary or executive officer is, or has been, disqualified from managing a corporation under a law of this jurisdiction or another jurisdiction;

(d)    a description of the body corporate ' s business or functions, other than the operation of the clearing and settlement facility;

(e)    the services in respect of which the Australian CS facility licence is sought, including details of:

(i) the financial products for which clearing and settlement facilities are to be provided; and

(ii) the nature of each interest in a financial product that is to be transferred using the clearing and settlement facility; and

(iii) the mechanisms to be used by the body corporate to operate the clearing and settlement facility, including (if applicable) arrangements to limit the risk of default by a party to a transaction;

(f)    

whether the body corporate has applied, or intends to apply, to become a prescribed CS facility;

(g)    details of the technological resources that will be used in the operation of the clearing and settlement facility, including details of:

(i) the purpose of the resources; and

(ii) how the resources are to be supplied, managed, maintained and upgraded; and

(iii) how the security of information technology systems is to be protected;

(h)    details of the arrangements for dealing with conflicts between the body corporate ' s commercial interests and its obligations to supervise and monitor the clearing and settlement facility;

(i)    details of the arrangements for the supervision of employees of the body corporate who have duties and responsibilities of a kind that supervision of the employees is necessary to protect the integrity of the operation of the clearing and settlement facility;

(j)    details of the arrangements for managing counterparty risk, including the risks arising from a counterparty being unable to meet its obligations arising out of clearing, settlement or clearing and settlement transactions using the facility;

(k)    if the ACCC has made a decision in relation to the clearing and settlement facility that the body corporate will operate - details of the decision.

Example of interests in a financial product

Legal title or an equitable interest.

Example of mechanisms to operate the clearing and settlement facility

1. The way in which transfers are to be effected.

2. The way in which payment obligations are to be settled.