ASX: How benchmark reform has unlocked market efficiencies in Australia

EL1_OT1 2018-10-24T16:15:00.000Z

Open Theatre 1
Helen Lofthouse
Executive General Manager, Derivatives and OTC Markets ASX
ASX Operations PTY LTD

Interbank offered rates play a central role in financial markets, and in Australia the bank bill swap rate (BBSW) is the main domestic short-term interest rate used to price and value trillions of Australian derivatives and debt securities. ASX took over administration of BBSW in January 2017, leading the industry-wide transition to implement a transaction based methodology, in line with global best practice and the recommendations of the Council of Financial Regulators (CFR).

This session will examine the various challenges of implementing a transaction based benchmark, how changing the way that bank bill trading works has delivered unexpected efficiencies for market participants, and the importance of collaboration to ensuring a trusted, reliable and robust financial benchmark is delivered to the industry.