ASIC proposes rules for CGS trading
The Australian Securities and Investments Commission (ASIC) has released draft rules for trading depository interest in Commonwealth Government Securities (CGS) on public exchanges.
The consultation paper is designed to facilitate retail trading of CGS and to "develop a deep and liquid corporate bond market".
ASIC Commissioner John Price said it would give retail investors a benchmark for investing in Australian corporate bonds as well as encourage them to diversify savings through fixed-income products.
"Fostering the retail trading of CGS on financial markets can give retail investors, including self-managed super funds trustees, a more visible pricing benchmark for investments they may wish to make in corporate bonds issued by Australian businesses," he said.
Consultation paper CP181 proposes to adopt the proposals in consultation paper CP179 and tailor them to CGS' depository interests.
ASIC is seeking feedback on extreme price movements, pre and post-trade transparency, best execution, regulatory data for market surveillance, market operator obligations in a multi-market environment and market participant obligations.
Submissions close on 31 August 2012 and feedback is also requested on whether proposals should be applied to other debt market products.
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