ASIC Moves Euroclear Toward Australian Clearing and Settlement Licensing

ASIC said on 27 May that it has used new financial market infrastructure powers to declare Euroclear Bank SA/NV has a material connection to Australia through its local activities. The declaration requires Euroclear to transition into Australia’s clearing and settlement facility licensing regime.

The regulator said Euroclear is a key participant in Australia’s debt securities market, providing cross-border settlement and custody services for assets including Australian Government bonds. ASIC expects Euroclear to lodge a clearing and settlement facility licence application within 12 months, by 26 May 2027.

ASIC granted Euroclear a temporary exemption while the application process moves forward, with the stated aim of avoiding disruption for market participants during the transition. The action follows consultation with the Reserve Bank of Australia and uses expanded powers introduced under Australia’s 2024 financial market infrastructure reforms.

Why it matters

Cross-border settlement infrastructure sits behind bond liquidity, broker access and institutional execution. Bringing Euroclear into the Australian licensing framework gives regulators more direct oversight of a systemically important provider used in debt-market settlement and custody workflows.

What to watch next

The main deadline is 26 May 2027. Traders and market participants should watch whether Euroclear’s application changes operational disclosures, access arrangements or settlement resilience requirements for Australian debt securities.