ASIC has exercised new powers to declare that Euroclear Bank SA/NV (Euroclear) 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 (24-208MR).

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’s approach is consistent with its commitment to promote confident and informed participation in fair and effective markets, supporting economic growth in Australia.

As a significant global economy, Australia needs sophisticated and resilient market infrastructure providers and participants.

Background

ASIC was granted expanded licensing, supervisory and enforcement powers under the FMI reforms passed in September 2024 (24-208MR).

Euroclear is a key participant in Australia’s debt securities market, providing cross-border settlement and custody services for assets including Australian Government bonds. It is headquartered in Brussels and is owned by Euroclear Holding.

CS facilities play a critical role in financial markets by ensuring transactions are completed safely and efficiently.

In June 2025, ASIC granted a CS facility licence to Clearstream Banking S.A., a multinational entity with a similar role in the Australian bond market.

The RBA and ASIC are co-regulators of licensed CS facilities and have separate, but complementary, responsibilities for the licensing and supervision of CS facilities licensees.

Effective oversight is essential to maintaining resilient, well-functioning financial markets.

A list of all CS facilities licensed to operate in Australia is available on ASIC’s website.