First, while most financial market infrastructures serving Australian markets are currently operated by one entity, cross-border competition is increasing, particularly for central counterparty clearing services. It is likely that the Bank’s oversight responsibilities will increase and become more complex as it has to deal with new entities offering services in the Australian market.
The other development affecting the Board’s role is the global push to strengthen financial regulation in the wake of the global financial crisis. That includes the push for OTC derivatives to be cleared through central counterparties and reported to trade repositories, as embodied in the G-20 commitments from Pittsburgh in 2009.