Amendment to SE Control Act 1, 1985 - Clearing and Settlement

The sophistication, security and efficiency of clearing and settlement in securities markets has evolved remarkably in recent years. Driven by the concerns of investors facing exposure pending final settlement, a number of eminent international bodies have worked for the introduction of mechanisms aimed at containing and minimising these risks. Of greatest importance has been the work completed by the Group of Thirty ("G30"). The G30 developed nine recommendations (Group of Thirty's International Standards on Clearing and Settlement of Securities Transactions) which were aimed at alleviating risk and improving efficiency. In summary they gave rise to international standards which would:

- shorten the period for matching (or comparison) of trades between members, and between members and selected non-members to no longer than one day immediately after the trade;