De-Materialisation and Cross-Border linkages
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
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.