Australian Securities Exchange
Brighter futures
Investors are adjusting to a new normal in the Australian high-grade market as conditions settle after March’s turmoil. Reserve Bank of Australia (RBA) bond purchases slowed to a halt by the mid-way point of the year, but investors say its presence is still bringing stability and creating opportunities.
Uncleared margin and central clearing access
The introduction of uncleared-margin rules for OTC derivatives in Australia is leading market participants to consider central-clearing solutions. As the regulations capture a growing number of users, ASX says the need to move away from bilateral trading and manage compliance obligations is growing.
Market function at a critical juncture
The KangaNews Debt Capital Markets Summit 2021 virtual event took place on 9 June, ahead of another important period for the Australian economy and market’s emergence from the COVID-19 crisis. Discussions throughout the day reiterated the importance of Reserve Bank of Australia policy settings for determining the path of both.
Hopes high for immediate liquidity in new five-year ACGB future
The launch by the Australian Securities Exchange (ASX) of a new five-year Australian Commonwealth government bond (ACGB) futures contract is well timed to meet the needs of an evolving market and should therefore attract liquidity from listing, market participants believe.
Anchored three-year yield spurs ASX to introduce five-year futures
Increased issuance from the AOFM – including targeting maturities of 3-5 and 10-12 years – and the Reserve Bank of Australia (RBA)’s intervention in the Australian sovereign bond market have accelerated Australian Securities Exchange (ASX) thinking about a new contract in its bond futures suite. The exchange is planning to introduce a new five-year contract by the end of the year.
Time for issuers and investors to step up engagement on benchmark reform
End users can no longer ignore the domestic and international process of reforming benchmark rates, according to speakers at the International Swaps and Derivatives Association (ISDA)’s annual Australian conference in Sydney. The local market is less than halfway through its own transition and the main concern is lack of engagement from many issuers and investors.
