CLF Notifications

Last updated: 28 June 2018

This page is where the Reserve Bank publishes amendments to the CLF Terms and Conditions and/or the CLF Operational Notes, and the dates upon which they come into effect.

Notice – 28 June 2018

A minor amendment to Attachment A: Form of Utilisation Request in the CLF Operational Notes will be made effective 30 July 2018. In order to further clarify what information is required in Section 3. ii Purchase Price of the Request the guidance note has been revised as follows:

ii. Purchase Price: [  ]

[Note: the proposed Purchase Price (payment amount) for the SF Repo must be in Australian dollars and must not exceed the Reserve Bank's Commitment]

has been replaced with:

ii. Purchase Price: [  ]

[Note: the proposed Purchase Price for the SF Repo must be in Australian dollars and must not exceed the Reserve Bank's Commitment. The proposed Purchase Price is the proposed price at which the CLF Participant will sell the Purchased Securities to the Reserve Bank (i.e. the Australian dollar amount the CLF Participant proposes will be paid by the Reserve Bank to the CLF Participant to purchase the Purchased Securities). It is not the Fair Value of the Purchased Securities]

Notice – 1 March 2017

On 1 March 2017, the following notice was provided to CLF Participants as a result of updates to the Technical Notes for Domestic Market Operations relating to reporting requirements for asset-backed securities:

  • Prior to 1 March 2018, for asset-backed securities to satisfy the mandatory reporting requirements for RBA eligible securities, reporting through the Securitisation System must be lodged within 7 calendar days of the monthly anniversary of the distribution date for asset-backed securities. From 1 March 2018, reporting through the Securitisation System must be lodged by the monthly anniversary of the distribution date for the asset-backed securities. Any asset-backed securities that do not meet this requirement will be considered ineligible for repo with the Reserve Bank. Securities that lose eligibility due to late reporting will remain ineligible until all submissions outstanding related to that security have been made and a subsequent submission has been lodged successfully by the due date.

Notice – 23 January 2017

Minor amendments to the CLF Terms and Conditions and the CLF Operational Notes have been made in response to the upcoming adoption of a revised version of the RITS Regulations. The amendments were announced on 23 January 2017 and are effective from the later of: (a) 23 February 2017 and (b) the ‘Rewrite Adoption Date’ as defined in the revised version of the RITS Regulations. The amendments are:

  • All references to ‘RBA Repo’ have been replaced with ‘SF Repo’. Following the first reference to ‘SF Repo’ in each document, ‘(Standing Facility Repo)’ has been added.
  • All references to ‘Approved Security’ have been replaced with ‘Eligible Security’.
  • All references to ‘TBMA/ISMA Agreement’ have been replaced with ‘SIFMA/ICMA Agreement’.
  • In CLF Terms and Conditions Clause 1.3: the definition of ‘Approved Security’ has been replaced with:

    Eligible Security means a Security that the Reserve Bank has determined it is prepared to purchase or sell under a Reciprocal Purchase Transaction to which Annexure A of the RITS Regulations applies and that satisfies any other criteria determined by the Reserve Bank from time to time as set out in the CLF Operational Notes for this purpose.

    the definition of ‘Master Agreement’ has been replaced with:

    Master Agreement means the SIFMA/ICMA Agreement as amended and supplemented by Annex I in section 3 of Annexure A of the RITS Regulations and clause 6 of these Terms and Conditions.

    the definition of ‘RITS Participating Bank Facilities Agreement’ has been deleted.

  • CLF Terms and Conditions Clause 3.1 has been replaced with:

    3.1 Amount

    The commitment of the Reserve Bank to the CLF Participant on any day is, subject to clause 3.2, an amount in Australian Dollars which is equal to the Australian Dollar amount of CLF commitment of the Reserve Bank to the CLF Participant which, on or prior to that day, APRA has most recently advised the CLF Participant and the Reserve Bank in writing that the CLF Participant may count towards the CLF Participant's LCR on that day.

  • In CLF Terms and Conditions Clause 4.2, ‘RITS Regulations, the Conditions of Operation and the Master Agreement’ has been replaced with ‘RITS Membership Documents’.
  • In CLF Terms and Conditions Clause 6.3, ‘clause 2(c) in Annex I set out in Exhibit A of the RITS Regulations, for the purposes of paragraph 2(cc) of the Master Agreement’ has been replaced with ‘paragraph 1(e) in Annex I in section 3 of Annexure A of the RITS Regulations, for the purposes of paragraph 2(ee) of the Master Agreement’.
  • In CLF Terms and Conditions Clause 11.1(a), ‘its RITS Membership Agreement and RITS Participating Bank Facilities Agreement’ has been replaced with ‘each RITS Membership Document it has executed and delivered to the Reserve Bank’.
  • In CLF Terms and Conditions Clause 20.4, ‘the CLF Operational Notes, the RITS Regulations, the Conditions of Operation, the RITS Membership Agreement and the RITS Participating Bank Facilities Agreement’ has been replaced with ‘the CLF Operational Notes and the RITS Membership Documents’.
  • In CLF Terms and Conditions Clause 20.6, ‘RITS Regulations’ has been replaced with ‘RITS Membership Documents’.
  • In CLF Operational Notes, Section 1, ‘The Reserve Bank is providing a Committed Liquidity Facility (CLF) as part of Australia's implementation of the Basel III liquidity standards from 1 January 2015. Consistent with the standards, certain authorised deposit-taking institutions (ADIs)…’ has been replaced with ‘The Reserve Bank provides a Committed Liquidity Facility (CLF) to certain authorised deposit-taking institutions (ADIs) as part of Australia's implementation of the Basel III liquidity standards. Consistent with the standards, certain ADIs…’.
  • In CLF Operational Notes, Section 5, ‘Exhibit B of the RITS Regulations’ has been replaced with ‘Annex I in section 3 of Annexure A of the RITS Regulations’.

Notice – 22 September 2016

On 22 September 2016, the following notice was provided to CLF Participants as a result of updates to the Technical Notes for Domestic Market Operations:

  • The Reserve Bank will not accept securities after a call notice has been issued. For CLF purposes, this change to the criteria for ‘approved securities’ will come into effect from 22 September 2017.

Notice – 8 April 2015

The following amendments to the CLF Terms and Conditions and the CLF Operational Notes were announced on 8 April 2015 and are effective from 8 May 2015:

  • CLF Terms and Conditions Clause 14 has been amended to clarify that the CLF Participant only indemnifies the Reserve Bank regarding technological failures directly related to the CLF. Specifically, in paragraph (a)(ii), ‘any technological failure of any sort (including the failure of any communications, computer, software or electrical failure);’  was replaced with: ‘any technological failure of any sort (including the failure of any communications, computer, software or electrical failure) directly related to the CLF;’
  • In Schedule 1 to the CLF Terms and Conditions, paragraph (c) ‘acknowledge that the Commitment of the Reserve Bank will not become effective until 1 January 2015’ has been deleted, as it has become redundant. The subsequent paragraphs have been renumbered accordingly.
  • In the CLF Operational Notes, a new Section 12 on Privacy has been added:

    12. Privacy

    All ADIs which apply for and/or enter into a CLF with the Reserve Bank are responsible for ensuring that a copy of the following notice is given to all relevant employees within their organisation.

    The Reserve Bank collects personal information regarding the contacts (including CLF authorised signatories) for an ADI in respect of a CLF including their name, title and position, work telephone number, work email address and/or specimen signature (the Information). The Reserve Bank collects the Information in order to: identify and verify the contacts for the ADI; communicate with the ADI in respect of the CLF; and check the due execution of communications from the ADI (including any Utilisation Requests). If the Information were not collected, the Reserve Bank would not be able to establish a CLF with the ADI or, in respect of that CLF, communicate with the ADI, maintain contact information for the ADI or ensure requests and instructions received from the ADI are correctly authorised. The Information is of a kind which the Reserve Bank does not usually disclose to persons or organisations outside the Reserve Bank. Individuals are entitled under Australian privacy law in certain circumstances to access, and seek correction of, personal information about them held by the Reserve Bank. If you wish to access the personal information the Reserve Bank holds about you, or if you have an enquiry or complaint about how the Reserve Bank handles personal information, you can contact the Reserve Bank's Privacy Officer by email to privacy@rba.gov.au or by phone on 02 9551 8111. The personal information of a contact (including a CLF authorised signatory) for an ADI should be updated by notice given in accordance with the CLF Terms and Conditions and these CLF Operational Notes. More information about access, correction and complaints is in the Reserve Bank's Privacy Policy available on its website at www.rba.gov.au/privacy/.

Notice – 1 December 2014

On 1 December 2014, the following minor amendments were made to the CLF Operational Notes as a result of updates to the Technical Notes for Domestic Market Operations:

  • In Section 7, the link to the ‘Liquidity Facilities’ page was replaced with a link to the ‘Standing Facilities’ page.
  • In Section 9, the link to the ‘Eligible Securities’ page was replaced with a link to the ‘Eligible Securities and Margin Ratios’ page.
  • In Section 9, the sentence ‘The Reserve Bank will provide guidance on its approach to valuing asset-backed securities without observed market prices on its website by the end of 2014.’ was replaced with the sentence: ‘For guidance on the Reserve Bank's approach to valuing asset-backed securities without observed market prices, please see the Reserve Bank website: Valuing Asset-Backed Securities Without Observed Market Prices.’