Australian securities regulator ASIC on Wednesday said Brussels-based settlement provider Euroclear Bank SA/NV has a material connection to Australia through its Australian activities, triggering a requirement for the firm to transition into Australia’s clearing and settlement facility licensing regime.
Euroclear has until 26 May 2027 to lodge a CS facility licence application. ASIC granted a temporary exemption to avoid disruption for market participants during the transition.
The declaration is the legal mechanism that brings an offshore clearing and settlement facility inside the Australian licensing perimeter. Once inside, the facility falls under ongoing supervision by ASIC and the Reserve Bank of Australia, which co-regulate licensed CS facilities. ASIC said the assessment of Euroclear’s Australian operations was conducted in consultation with the RBA.
The move affects Euroclear’s role in settling Australian Government bond transactions and cross-border custody services touching that market.
Euroclear is the second of the world’s two major international central securities depositories to face Australian licensing requirements. Clearstream Banking S.A. obtained a CS facility licence in June 2025.
The action relies on expanded powers introduced under the Financial Market Infrastructure reforms, which received Royal Assent in September 2024. ASIC’s use of the material-connection test on Euroclear follows the Clearstream precedent and signals continued application of those powers to offshore FMIs servicing Australian markets.
