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New Zealand bond derivatives

ASX 3 year and 10 year New Zealand government stock futures and options

3 and 10 Year New Zealand government stock futures and options are approved for trading by:

  • US Commodities Futures Trading Commission (CFTC)
  • UK Financial Services Authority (FSA)
  • Monetary Authority of Singapore (MAS) and
  • Hong Kong Securities and Futures Commission
    (SFC Hong Kong).

Features

  • Cash settled - the 3 and 10 year New Zealand Government Stock Futures are cash settled against the average price of series of New Zealand Government Stock.
  • Variable tick value - the 3 and 10 year New Zealand government stock futures are traded on the basis of their yield with the futures price quoted as 100 minus the yield to maturity expressed in per cent per annum. Due to this convention the dollar value of the minimum price movement, or tick value, does not remain constant but rather changes in accordance with movements in the underlying interest rate.

Trading ASX bond futures and options

  • Trading in 3 and 10 year New Zealand government stock futures and options is conducted ‘on market’ via the electronic platform ASX Trade24® and ‘off market’ through the block trade facility and ‘exchange for physicals’ transactions.
  • Spread trading functionality is available for yield curve and calendar spreads.
  • Attractive spread concessions are available on calendar spreads as well as inter-commodity spreads for offsetting positions held in the 3 Year and 10 year New Zealand government stock futures contracts and New Zealand 90 Day bank bill Futures contract.