ASIC has released a Consultation Paper (CP 120) Clearing and settlement facilities: Australian and overseas operators containing proposed guidance on the regulation of clearing and settlement (CS) facilities.

The Corporations Act requires that operators of a CS facility in Australia have a CS facility licence or have been granted an exemption from the licence requirement by the Minister.

The Consultation Paper outlines when an Australian CS facility license is required and how Australian and overseas operators can apply for a licence. The guidance also details ASIC’s approach to advising the Minister about applications for exemption from the requirement to hold a licence.

Submissions close on 13 November 2009.