De-materialisation and Cross-Border linkages

De-materialisation

De-materialisation is the electronic lodgement of securities which were previously lodged in paper-based form.

Issuing debt paper electronically is very straightforward, and the benefits of doing so are numerous. They include:

  • Reduction in costs - the need to specially print the paper no longer exists.
  • Faster turn-around time for all parties
  • Increased operational efficiency for all parties
  • Greater privacy and confidentiality surrounding each issue
  • A fees and charges schedule which favourably reflects the efficiencies of electronic lodgement

Cross-Border Linkages

As an increasing number of domestic issuers are issuing offshore, ASX Austraclear has formulated a model to link participants with the overseas International Central Securities Depositories, CLEARSTREAM and EUROCLEAR and provide the following benefits:

  • An efficient means to direct access securities from overseas
  • The availability of these securities domestically to bolster RTGS liquidity
  • An increase in tradeable securities to the Australian market resulting in increased market depth

These links give participants the opportunity to settle international $A Eurobonds through existing ASX Austraclear arrangements without the necessity to directly participate in those systems.  Acceptable securities currently include

  • Fannie Maes
  • Supra-national securities

Listing of other securities can be established by application.

More detailed information on Euroentitlements can be found in the ASX Austraclear System Regulations, the ASX Austraclear Procedures, Determinations and Practice Notes and the ASX Austraclear System Participant Guide (PDF 3.3MB)