2  BIS central bankers’ speeches  Specific requirements would be expected to be applied in a graduated and proportional manner and would include the following: •  all licensed CCPs must demonstrate legal compatibility of the facility’s rules with Australian regulatory objectives, and have adequate mechanisms to demonstrate compliance with all licence obligations;  •  where licensed CCPs have material Australian-based participation and/or provide services in Australian-related products, they must have governance and operational arrangements that promote stability in the Australian financial system;  •  where a CCP is deemed to be systemically important by the Reserve Bank, it must hold an Exchange Settlement Account (ESA) at the Bank to better manage liquidity and settlement risks around Australian dollar obligations.
The Australian regulators are also closely engaged with ongoing international work on the recovery and resolution of financial market infrastructure. This work will be a key input into the development of a fully articulated recovery and resolution regime for financial market infrastructure in Australia.