ASX Augments Securities Capabilities via New RMB Depository Service

The Australian Securities Exchange (ASX) has unveiled its new renminbi (RMB) securities depository service, which builds on an existing suite of options utilized by the exchange in cooperation with the Bank of China Limited, Sydney Branch, according to an ASX report.

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The launch of the new RMB service caters to Australian financial markets, at a time when the Chinese currency’s use is on the rise in the APAC region, according to recent SWIFT tracking data. In particular, the depository service will help enable issuers to support RMB-denominated securities directly into Austraclear, the ASX’s subsidiary for depository, registration, cash transfer, and settlement services for debt instrument securities.

As such, the new service will allow Austraclear participants to settle and hold RMB-denominated securities in Austraclear. Over the past two years, Austraclear has served as a nexus for RMB cash settlements, which already provides a multitude of services for market participants via straight-through-processing links to Hong Kong (via CHATS RTGS), Mainland China (via CNAPS) and the rest of the world (via CIPS).

Per the latest service extension however, Austraclear will provide full end-to-end support: the issuance, settlement, and the holding of RMB- denominated securities.

According to ASX’s Chief Executive Officer (CEO) Dominic Stevens in a recent statement on the launch: “ASX is pleased to extend its RMB capabilities to match the growing importance of Australia as a financial hub for RMB in the Asia Pacific. The services support Australia’s extensive trading relationships with China and enable issuers to access the investor demand in Australia for RMB securities.”