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Australia beefs up clearing rules

Reserve Bank of Australia tells ASX Clear to raise buffer against member default

Australia’s largest derivatives clearing house has been told to increase its capital buffer to protect it from a member default, in a move which aligns the operator with major clearers in Europe.

ASX Clear, which is owned by the Australian Securities Exchange, said today that it had been advised by the Reserve Bank of Australia "to maintain higher capital and liquid resources", enabling it to withstand a default by the two members to which it has the largest credit exposure.

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