New Financial Stability Standards for Securities Settlement Facilities | Media Releases

Author Myron Davis Posted on June 22, 2024Categories finance   Leave a comment on New Financial Stability Standards for Securities Settlement Facilities | Media Releases

Following a public consultation,
the Reserve Bank of Australia has decided to increase the settlement activity threshold under the
Financial Stability Standards for Securities Settlement Facilities (SSF Standards) to achieve a better
balance between the risks posed by small firms to the financial system and the regulatory burden imposed
on them. The review of the settlement activity threshold in the SSF Standards was initiated following the
Payments System Board’s meeting in November 2023.

The SSF Standards will not apply to a clearing and settlement (CS) facility licensee that settles less
than $40 billion of financial obligations through the facility in a financial year; this threshold
was previously $200 million. The new threshold is equivalent to around 1 per cent of total
annual settlement activity for Australian equity securities and less than 1 per cent of total
annual settlement activity for Australian debt securities.

In accordance with section 827D of the Corporations Act 2001 (the Act), the RBA has
implemented the changes to the settlement activity threshold under the SSF Standards by:

  1. revoking the existing SSF Standards, pursuant to section 827D(8) and of the Act, with effect on
    24 June 2024; and

  2. determining new SSF Standards, pursuant to section 827D(1) of the Act. The new SSF Standards are in
    the same terms as the existing SSF Standards, other than the necessary changes to the settlement
    activity threshold contained in paragraph (a) of the ‘Introduction’ section. The new SSF
    Standards will come into effect on 24 June 2024.

Background


The RBA and ASIC are co-regulators of licensed CS facilities and have separate, but complementary,
responsibilities for the licensing and supervision of CS facilities licensed under Part 7.3 of
the Act.

The Reserve Bank of Australia has the power, under subsection 827D(1) of the Act, to determine financial
stability standards for the purpose of ensuring that CS facility licensees conduct their affairs in a way
that causes or promotes overall stability in the Australian financial system. In accordance with this
power, the Bank has determined two sets of financial stability standards:

  • the Financial Stability Standards for Central Counterparties (CCP Standards); and

  • the Financial Stability Standards for Securities Settlement Facilities (SSF Standards).

The RBA may conduct assessments of how well each CS facility licensee is meeting their statutory
obligations to comply with those standards and to do all other things necessary to reduce systemic
risk.

ASIC has separate, but complementary, responsibilities for the licensing and supervision of CS
facility licensees. These responsibilities include supervising each CS facility licensee’s
compliance with the obligation to do all things necessary to ensure that the facility’s services
are provided in a fair and effective way, to the extent it is reasonably practicable to do so.

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The Importance Of Security And Integrity In Online Poker

Author Myron Davis Posted on February 29, 2024February 29, 2024Categories Online Poker   Leave a comment on The Importance Of Security And Integrity In Online Poker

Online gaming, particularly poker, has become one of the most essential and popular leisure activities worldwide. The data confirms this when the International Poker Federation (IFP) estimates that there are more than 200 million online poker players worldwide.

This rise and popularity have also been linked to increased risks of suffering a scam or theft through online gaming platforms. The sector’s digitalization has made online poker more accessible. Still, at the same time, it has made many people try to take advantage of existing loopholes to appropriate other people’s things in Texas poker games, for example.

Fraud and theft are real problems in online gambling. During the past year, according to the same association, the money defrauded or stolen through online poker was around 100 million dollars. Hence, security and integrity in online poker are essential to combat some of the most common types of fraud in the sector. 

Most Frequent Frauds And Thefts

The most common types of fraud and theft in online poker are those related to theft of funds and software fraud. The first refers to situations in which players are victims of theft of money deposited on the platform by fraudulent gaming sites, whether through scams, hacks or other means. Software fraud, meanwhile, refers to the type of abuse that occurs when players are tricked into losing money through bots or software programs.

Given this situation and to increase players’ confidence, companies in the sector are investing money in improving security on the platforms on which they use technology. In this sense, some of the methods implemented in recent years are:

  • Identity Verification. Online gaming platforms require identity verification to ensure that each player is who they say they are. This includes document verification and, in some cases, two-factor authentication.
  • Use Of Cheat Detection Algorithms. Companies use advanced algorithms that analyze player behaviour for suspicious patterns. This may include detecting repetitive actions or unusual statistics.
  • Independent Audits. The most security-conscious online gaming platforms subject their operations to regular audits by third-party companies. This ensures that the games are fair and the results are random
  • Collaboration With Regulators. Collaboration with country regulatory authorities is essential to ensure that security practices are rigorous and local regulations are met.
  • Player Training. To minimize the risks of platform users falling victim to a scam, companies also invest resources in training players, advising on secure passwords and detecting possible threats. 

Among the aspects that any user must assess when choosing a platform is, for example, that the competent authority regulates the platform or that it has a demanding security and data protection policy such as, for example, verification of identity and data encryption.

Another vital aspect is the history and reputation of the online poker platform. Before playing and, above all, sending money to the platform, users should research the platform’s reputation and look for reviews from other players. A platform with a solid track record and cheerful (and honest) reviews is more likely to be trustworthy.

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