The Australian Competition and Consumer Commission proposes to grant reauthorisation to the High Value Clearing System (HVCS) Regulations and Procedures, operated by the Australian Payments Clearing Association (APCA).
APCA coordinates and manages payments clearing and settlement systems including the HVCS. The HVCS provides a framework within which financial institutions involved in high volume transactions can electronically exchange high value payments.
The proposed reauthorisation covers the suspension and termination of HVCS membership and the requirement that members use the SWIFT payment delivery system in clearing and settling payments. The SWIFT payment delivery system is a centralised payment delivery mechanism which enables members to send and receive payments from all other members using the SWIFT payment delivery system.
"The ACCC considers that HVCS members are likely to have greater confidence in the HVCS with the reauthorisation of the suspension and termination provisions of the HVCS regulations and procedures," ACCC chairman Rod Sims said.
"By requiring HVCS members to also be members of SWIFT, the HVCS procedures are likely to result in economies of scale that benefit these members."
"The provisions result in a benefit to the public by contributing to the integrity and efficacy of the HVCS," Mr Sims said.
Authorisation provides immunity from court action for conduct that might otherwise raise concerns under the competition provisions of the Competition and Consumer Act 2010. Broadly, the ACCC may grant an authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment.
The ACCC granted APCA interim authorisation on 25 January 2012, allowing them to continue operating the HVCS until a final authorisation is made.
The ACCC will now seek further submissions from the applicants and interested parties in relation to this draft determination prior to making a final decision on whether to authorise the conduct. The applicants or interested parties may also request that a conference be held to make oral submissions on the draft determination.