Australian Government, the Australian Office of Financial Management

AMENDMENTS TO TERMS AND CONDITIONS FOR COMMONWEALTH GOVERNMENT SECURITIES (CGS)

The Terms and Conditions for Treasury Bonds, Treasury Indexed Bonds and Treasury Notes have been amended to reflect:

  • the migration of CGS holdings and related settlement functions from the Reserve Bank Information Transfer System (RITS) to the Austraclear System operated by the SFE Corporation Limited; and
  • a change in the manner that cash settlement amounts associated with tenders are calculated.

Migration of CGS from RITS to Austraclear

From today, the settlement of CGS tenders will take place in the Austraclear System rather than in RITS. Settlement of stock allocated at tenders will take place in the Austraclear System during system hours, as defined in the Austraclear System Regulations and Operating Manual, on the day specified in the official announcement of the tender.

In the case where the Commonwealth is a seller of stock (i.e. conventional issuance tenders and destination stock in conversion tenders) settlement will occur through the Reserve Bank Austraclear branch RBAATS. In the case where the Commonwealth is a purchaser of stock (i.e. the offered stock in conversion tenders) settlement will occur through the Reserve Bank Austraclear branch RBAATP.

This move will not affect the procedures for bidding for CGS at tenders. It will continue to be the case that only bids submitted electronically in RITS by members of RITS in accordance with the RITS Regulations and Conditions of Operation will be accepted. Successful bidders will continue to be notified in the usual manner.

Cash settlement amount associated with tenders

The settlement price per $100 face value of Treasury Bonds and Treasury Indexed Bonds purchased at tenders has previously been cash settled to the ninth decimal place. This has been reduced to three decimal places, thereby coming into line with the settlement convention in the secondary market. Cash settlement of Treasury Notes will continue to be made to the ninth decimal place.

Copies of the amended Terms and Conditions documents can be found at www.aofm.gov.au.

Contact:
Michael Allen
Chief Executive Officer
(02) 6263 1100


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