ASIC Brings Euroclear Under Australian Licensing Regime Using New Powers

The Australian Securities and Investments Commission (ASIC) has utilized new powers to declare that Euroclear Bank SA/NV has a material connection to Australia through its local activities. This move requires the international settlement provider to transition to Australia's clearing and settlement (CS) facility licensing regime.

The decision follows an assessment of Euroclear's Australian operations and consultation with the Reserve Bank of Australia (RBA). ASIC employed expanded powers introduced under recent financial market infrastructure (FMI) reforms.

Applying these powers ensures offshore providers with a material Australian connection are subject to appropriate regulatory oversight. This supports 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 prevent disruption for market participants during the transition, ASIC has granted Euroclear a temporary exemption while its 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.