Review of Settlement Practices for Australian Equities 1. Introduction

On two occasions in late January 2008, there were significant delays in the settlement of Australian equities. Following these delays, the Payments System Board has undertaken a review of settlement practices for the equity market. The Review has drawn on extensive consultation with industry participants and ASX as well as overseas central banks and regulators. It has paid particular attention to practices in the securities lending market, given that the settlement delays were in part the result of a participant's failure to meet its delivery obligations in respect of securities lending transactions. This document presents the results of the Review.