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Market maker arrangements for AGBs

Please click here to learn more about market making arrangements.

Market makers have an important role in ensuring that buyers and sellers can transact in markets. Market makers receive incentives from ASX when making markets in accordance with the market making specifications under the applicable schemes. The specifications set out below are a summary of select terms in the market making incentive agreements between ASX and relevant maker makers, and are not intended to be a definitive or comprehensive summary of those agreements.

*All references to time are to Australian Eastern Standard Time or Australian Eastern Daylight Time (as applicable) unless otherwise stated.

Bond markets
  • Treasury Bonds
  • Treasury Index Bonds

Current market makers

  • Commonwealth Bank of Australia
  • JPMorgan
Incentives        Fee rebates
Requirements
  • Time
  • Generally required to provide continuous two-way quotes during market open hours (10:00am–4:00pm)
  • Market makers are not required to make prices during certain times, such as during important data releases or when the wholesale bond market is closed
  • Quoting ceases 5 days before the record date
  • Minimum liquidity
       10,000 bonds on each bid and offer or the face value equivalent of A$1,000,000
  • Maximum spread*
Maturity (years) Maximum spread (cents)
Less than 5 30
5-10 50
10-30 80

 


 *
Applies to:

  •  Treasury Bonds with yields between 3-4%, and
  •  Treasury Index Bonds with yields between 2–3% or CPI adjusted face value of $A100 -140.

Maximum spread requirements for bonds outside these ranges are agreed by ASX and the market maker.