ASX consultation on changes to the BBSW methodology

ASX consultation on changes to the BBSW methodology

ASX consultation on changes to the BBSW methodology

Jul 31 2020

The ASF was recently invited to join the ASX BBSW Advisory Committee.  The Committee is currently focused on BBSW methodology enhancement with the purpose of increasing the use of transaction data where possible, maintaining the quality and integrity of BBSW and ensuring that BBSW rates can be formed in the widest range of market conditions.  

On 27 July, the ASX released its consultation paper on proposed changes to the BBSW methodology. The objective of the changes are to increase the frequency with which BBSW rates are calculated using transaction data, while ensuring that a high quality rate is produced. The proposed enhancements relate solely to the transaction layer of the BBSW calculation waterfall.

The consultation will be open from 27 July 2020 to 27 August 2020. Responses can be submitted to ASXBPricing@asx.com.au.

ASX Benchmarks will publish a market notice to advise market participants and BBSW subscribers of the outcome of the consultation in September 2020. ASX proposes to implement the methodology changes in November 2020, subject to the feedback received from this consultation paper.

Download the consultation paper >