The Australian Securities and Investments Commission (ASIC) has exercised new powers to declare that Euroclear Bank SA/NV has a material connection to Australia through its Australian activities, triggering requirements for the international settlement provider to transition to Australia’s clearing and settlement (CS) facility licensing regime.

This follows an assessment of Euroclear’s Australian operations and consultation with the Reserve Bank of Australia (RBA), using expanded powers introduced under the financial market infrastructure (FMI) reforms.

Applying these powers ensures that offshore providers whose Australian activities have a material connection with Australia are subject to appropriate regulatory oversight, supporting the resilience and integrity of Australia’s financial markets, including its debt securities market and cross-border settlement activity.

ASIC expects Euroclear to transition to the licensing regime and lodge a CS facility licence application within 12 months, by 26 May 2027.

To avoid any disruption for market participants during the transition, ASIC has granted Euroclear a temporary exemption while a licence application is progressed.

Euroclear has indicated it will engage constructively with ASIC during this process.

ASIC was granted expanded licensing, supervisory and enforcement powers under the FMI reforms passed in September 2024.