RESERVE BANK OF AUSTRALIA

2. under paragraph 827D(7)(a) of the Act that on 20 February 2013 pursuant to subsection 827D(l) of the Act, the Reserve Bank determined financial stability standards identical in content to the Existing Sub-Standards (New Sub-Standards) which are each incorporated into the CCP Standards in the place indicated by their numbering. In accordance with paragraph 827D(5)(a)(ii) of the Act, the New Sub-Standards come into effect on 31 March 2014. Purpose and effect The Existing Sub-Standards were due to come into force on 29 March 2013. Upon the application of the existing clearing and settlement (CS) facility licensees that operate a central counterparty, the Reserve Bank agreed to grant transitional relief in respect of the Existing Sub-Standards such that the date they come into effect is deferred until 31 March 2014. The Reserve Bank granted this relief on the basis that compliance with the Existing Sub-Standards necessitates significant, industry-wide change as well as there being external dependencies to achieving compliance. The purpose of the revocation of the Existing Sub-Standards (the Revocation) and the determination of the New Sub-Standards (the Determination) is to implement the Reserve Bank's decision to grant transitional relief in respect of the Existing Sub-Standards. The Revocation and Determination are necessary due to the operation of subsection 827D(5) of the Act which determines when a fmancial stability standard comes into force.