RBA Payments System Board Update: August 2025

At its meeting today, the Payments System Board discussed a number of issues, including:

• The regulatory response to the CHESS batch failure incident in December 2024. The Board reviewed ASX's plans to ensure the current CHESS is adequately operated, maintained and supported as a critical financial market infrastructure. Members noted that early progress is being made and agreed that significant concerns remain. The Board also agreed on further regulatory steps to ensure CHESS Replacement is designed with an appropriate level of resilience for critical financial market infrastructure.
• The annual Assessment of the ASX clearing and settlement facilities against the Financial Stability Standards. The Board endorsed the RBA's Assessment, which will be published after it has been provided to ASX, the Treasurer and the Australian Securities and Investments Commission. Members observed that ASX has made limited progress in addressing the RBA's fundamental concerns in relation to operational resilience and risk management over the past year. ASX's response to the CHESS batch failure incident in December 2024 and its aftermath has also demonstrated that ASX must take urgent steps to improve its governance and risk culture. The successful delivery of ASX's current risk management, technology and transformation initiatives is crucial to the continuity of services that are critical to the stability of the Australian financial system.
• The RBA's oversight of international financial market infrastructures, including LCH SwapClear, CME, Clearstream Banking, Euroclear Bank, CLS and Swift. Many of these infrastructures are engaged in complex, multi-year transformation programs to modernise systems and enhance resilience. Members emphasised the importance of strong project governance, testing and migration strategies to support the ongoing safety and resilience of critical infrastructure. Members also discussed the risks associated with growing reliance by financial market infrastructures on a small number of critical third-party service providers. The Board welcomed ASIC's decision to grant Clearstream Banking a clearing and settlement facility licence. Members highlighted the importance of the RBA and ASIC, as co-regulators of clearing and settlement facilities operating in Australia, having sufficient oversight of such facilities.
• The system-wide resilience of the Australian payments system. The Board highlighted the growing importance of operational resilience in the context of a more complex and challenging environment for operational risk in the payments system. Regulators and entities will need to increase their focus on system-wide interdependencies. The Board endorsed an ongoing research program examining interoperability, third-party and concentration risks, resilience arrangements for high-value payments and the vulnerability of the payments system to utilities outages.
• The future of cash distribution arrangements. Members discussed the challenges in the cash distribution system. There is an ongoing need for industry cooperation to work towards a more durable future distribution system that supports the availability of cash in the community, including in rural and regional Australia. Cash remains an important means of payment for many Australians and can play a valuable role as a back-up to electronic payments, as part of a resilient and inclusive payments ecosystem. Members noted that a new proposed regulatory framework for providers of cash distribution services, which was the subject of a recent CFR and ACCC consultation, should contribute to the management of risks relating to the continuity of cash distribution services across Australia.
• Review of Merchant Card Payment Costs and Surcharging. The Board was provided with an update on the initial responses of stakeholders to the Consultation Paper published in July. Members noted feedback regarding the potential impact of the proposed card payments regulations on the ability of small issuers and fintechs to compete and innovate. Members held a preliminary discussion on whether there is a case to reduce the regulatory burden of card payments regulations on small issuers and what options might best support this objective. The issue will be considered further as part of the consultation process for the Review.
• Global developments in stablecoins. Members discussed the recent sharp growth in the global stablecoin market, noting the market is largely concentrated in a small number of US dollar stablecoins. Members discussed the expansion in potential use cases for stablecoins, including as a means of payment and in cross-border transactions. They also considered the emerging regulatory frameworks across jurisdictions. While the stablecoin market in Australia is currently very small, members discussed a range of potential domestic implications if the use of stablecoins were to grow considerably. The Board also welcomed the Government's proposed reforms aimed at ensuring that stored-value facilities, including stablecoins, operate under a strong regulatory and licencing regime.