What is Securities Exchanges Guarantee Corporation Limited (SEGC)?

SEGC is a company limited by guarantee which was incorporated in 1987 to be the trustee of the National Guarantee Fund (NGF). The members of SEGC are ASX Limited (ASX) and from 26 October 2020 Cboe Australia Pty Ltd (Cboe), formerly Chi-X Australia Pty Ltd.

SEGC administers the NGF in accordance with Division 4 of Part 7.5 of the Corporations Act 2001 and the Corporations Regulations 2001 and holds the assets of the NGF in trust for the purposes set out in the legislation.

The SEGC Board is made up of directors experienced in commercial matters involving the securities industry. Further information about the board of directors is given in the Annual Report.

What is the National Guarantee Fund ?

The National Guarantee Fund is a compensation fund available to meet certain claims which arise from dealings with participants of ASX and Cboe and, in limited circumstances, participants of ASX Clear Pty Limited (ASX Clear). Further information about the types of claims which can be made is given in the Annual Report and NGF Information Booklet.

When the six State stock exchanges merged in 1987 to form the national ASX, the assets of the fidelity funds of those State exchanges were also merged to form the NGF. Up until March 2005, SEGC provided investor compensation and clearing and settlement support in the circumstances set out in Part 7.5 of the Corporations Act. On 31 March 2005, the NGF was split by a payment out of the NGF to ASX Clear which then assumed sole responsibility for clearing counterparty risk. As a result, the NGF now only covers investor compensation in relation to the ASX and now also Cboe.

Payments from the NGF may only be made in the circumstances specified in the Corporations Regulations. Such payments include the costs of investigating and settling claims, and the administration costs of SEGC and the NGF.

New member of SEGC

The SEGC Board is delighted to announce that from 26 October 2020, Cboe Australia Pty Ltd (Cboe), formerly Chi-X Australia Pty Ltd is a member of SEGC. This means that clients of participants on the Cboe market will be covered by the National Guarantee Fund (NGF) in the same way as clients of participants on the ASX Ltd (ASX) market.

For a summary of what is covered under the NGF please see the ‘Who Can Claim” page of our website at:

https://www.segc.com.au/who-can-claim, which includes a link to the National Guarantee Fund Information Booklet.

For a summary of the effect of the transitional provisions applicable to Cboe as a joining market, click here.

SEGC Board of Directors

• Michael Willcock, Chair
• Paul Mann
• Colin Scully (ASX Appointed Director)
• Vic Jokovic (Cboe Appointed Director)
• Chitra Shanker

Capping of Claims on the NGF

New caps on claims on the NGF have been introduced. Please click here for further details. 

BBY

SEGC has now paid most BBY claims that have been allowed by it. If you are unsure of the status of your claim on the National Guarantee Fund (NGF), please contact SEGC on (02) 8216 0231 or at segc@segc.com.au.

Minimum Amount

In February 2022 the Board of SEGC determined a new minimum amount for the NGF of $110 million. The new minimum amount came into force on approval by the Minister on 4 April 2022.