The Australian Securities and Investments Commission has ordered Euroclear Bank to apply for a clearing and settlement facility license by May 26, 2027, or lose access to the Australian government bond market. The Brussels-based international central securities depository now has one year to submit its formal application under expanded regulatory powers ASIC gained through legislation passed in September 2024.
Euroclear becomes the second major ICSD forced into Australian licensing, following Clearstream Banking which obtained its license in June 2025. Both firms dominate global cross-border settlement and provide critical custody and settlement services for institutional holders of Australian government debt securities. ASIC has granted Euroclear a temporary exemption during the application process to prevent market disruption.
The move represents ASIC’s second major deployment of new supervisory authority over offshore financial market infrastructure providers, conducted in coordination with the Reserve Bank of Australia. By mid-2027, both major ICSDs operating in Australia’s debt markets will be under direct regulatory oversight.
FXnCO Insight
Institutional traders holding Australian government bonds through Euroclear should verify contingency settlement arrangements before the May 2027 deadline to mitigate potential operational risk.
Source: Finance Magnates