The Australian Securities and Investments Commission (ASIC) has directed Euroclear Bank SA/NV to apply for an Australian clearing and settlement (CS) facility licence within one year, using new regulatory powers designed to bring offshore market infrastructure providers under domestic oversight.
In a declaration published on Wednesday 27 May 2026, ASIC gave the Brussels-based international central securities depository until 26 May 2027 to lodge a formal CS facility licence application. Failure to apply within that period could see Euroclear lose access to the Australian market, where it currently settles transactions in Australian Government bonds.
Euroclear is the second of the world's two main international central securities depositories to face Australian licensing requirements. Clearstream Banking S.A. previously secured a CS facility licence in June 2025, following similar regulatory scrutiny.
Use of expanded supervisory powers
The decision marks one of the earliest high-profile uses of ASIC's expanded supervisory tools under the Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Bill 2024. The legislation, which received Royal Assent in September 2024, enhanced ASIC's ability to bring offshore financial market infrastructure under Australian regulation.
ASIC said its assessment of Euroclear's activities in the Australian market was conducted in consultation with the Reserve Bank of Australia, which co-regulates licensed CS facilities. The consultation reflects the joint responsibility of both agencies for overseeing systemically important clearing and settlement providers.
Temporary exemption to limit disruption
To avoid disrupting market participants while the licensing process is under way, ASIC has granted Euroclear a temporary exemption from the CS facility licensing requirement. This exemption allows Euroclear to continue settling Australian Government bond transactions during the application period.
Euroclear plays a central role in cross-border bond settlement globally. It reported approximately €37.5 trillion in assets under custody at the end of 2024 and serves more than 2,000 members, according to the information cited in the declaration.
ASIC enforcement backdrop
The move to require Euroclear to seek a licence comes against a backdrop of heightened regulatory activity by ASIC. The regulator secured AU$349.8 million in civil penalties between July and December 2025, its highest six-monthly total since the agency's founding, underscoring an assertive enforcement stance alongside the use of new infrastructure supervision powers.
