ASX Clear Receives AA- S&P Rating
ASX also announced that ASX Clear will be held to a higher regulatory standard for its financial resources. This reflects its application for regulatory recognition in the European Union (EU), which requires that ASX Clear holds a larger default fund. ASX Clear’s default fund is already sufficient to meet the higher standards.
The commitment by ASX Clear to meet the standards will particularly benefit European-headquartered banks, which will be able to operate in Australia and serve their customers in an efficient way. This helps maintain the global relevance and competitiveness of Australia’s financial markets.
Elmer Funke Kupper, ASX Managing Director and CEO, said: “Our commitment to meet the highest standards in both clearing houses is important for end-investors and for domestic and international investment banks that operate in Australia. It provides them with the confidence that they are operating within a world-class and well-capitalised infrastructure, which is based in Australia and governed under Australian law. The ‘AA-’ credit rating that S&P assigned to ASX Limited and both our clearing houses, confirms the strength of ASX’s balance sheet and risk management practices.