ASX Bond and Repo Clearing

What is ASX Bond and Repo Clearing?

ASX Bond and Repo Clearing is a proposed central counterparty clearing service connecting eligible Australian dollar-denominated bond and repo transactions with ASX’s derivatives, collateral and settlement infrastructure.

Eligible transactions would be cleared through ASX Clear (Futures), with net cash and securities obligations settling through Austraclear®. Trading would continue through relevant venues and networks. 

The proposed service (subject to regulatory and internal approvals), could help participants reduce gross obligations, recognise eligible portfolio offsets and simplify post-trade processes.

The service is intended to connect more of your AUD rates activity across:

Potential benefits for your organisation

1. Use balance sheets more efficiently
   Multilateral netting may reduce gross exposures and settlement obligations.
   
   
2. Recognise eligible portfolio offsets
   A connected risk framework may support offsets across bonds, repo, swaps and futures.
   
   
3. Improve funding and collateral efficiency
   Net settlement may reduce funding friction and support more effective collateral use.
   
   
4. Simplify post-trade operations
   Standardised processes may reduce operational complexity.
   
   
5. Extend an existing relationship
   Eligible participants may be able to extend their existing ASX Clear (Futures) relationship. 

Potential benefits will vary by participant and depend on the final service design, approved risk methodology, portfolio composition and clearing activity.