It is AFMA’s policy to comply with competition law and to put in place procedures to ensure compliance with the law. AFMA will not participate in nor facilitate any activity or agreement which is contrary to competition law rules. In order to assist understanding and compliance AFMA has a Competition Law Policy and Guidance. The purpose of the document is to set out AFMA’s policy on competition law issues and assist with guidance to AFMA staff and members on conforming with competition law.
The AFMA Debt Trading Guidelines have general application to trading participants in the Australian debt market. The smooth and efficient functioning of debt instrument markets rely on the integrity, honesty, good faith, and mutual trust shown by all participants. It is important that both buyers and sellers promote market liquidity. Among other reasons, market liquidity allows benchmark rates to be determined. These Guidelines direct trading participants to behave in a manner that is consistent with supporting market liquidity and have sound organisational arrangements in place to oversee debt trading activities.
These Guidelines are supplemental to the AFMA Code of Ethics and Code of Conduct and are designed to provide a common understanding around how organisations manage contributions of rates used in the calculation of financial benchmarks.
These guidelines relate to the handling of confidential information and the conduct of market soundings specifically for equity capital market transactions occurring in Australia.
These guidelines relate to the handling of inside information and the conduct of market soundings specifically for institutional debt capital market transactions occurring in Australia. AFMA commends the ECM Confidential Information and Sounding Guidelines to all market participants engaged in capital markets transactions. The DCM Guidelines address the particular characteristics of the institutional debt capital markets in Australia in relation to inside information and market soundings
These guidelines are intended to support the product development and distribution process within firms that issue retail structured financial products by clarifying the respective roles and responsibilities of the various parties involved in a manner that promotes the fair treatment of individual investors.
Trade matching has evolved as a means by which the risks encountered in the repo markets can be reduced, particularly operational risk. When practiced, trade matching significantly reduces settlement delays and failures, and facilitates best-practice credit and operational risk management. These guidelines describe repo trade matching best practice, and by clarifying the responsibilities of the various parties involved in repo transactions they are designed to reduce, to the maximum extent possible, settlement delays and failures.
It is default practice in the Australian Repo market to make margin calls, settled via either the transfer of cash or securities, in preference to repricing transactions to cover exposures between the parties. This guide describes market best practice in relation to repurchase agreement margin call arrangements, This guide should be read in conjunction with the AFMA Reciprocal Purchase Agreements Conventions and with the AFMA Repurchase Agreement Trade Matching Best Practice Guidelines.
An issue has arisen as to the appropriate operation of the LIBOR Cap, as contained in Section 160ZZA of the ITAA 1936 to AUD notional borrowings by a foreign bank following the cessation of AUD LIBOR on 31 May 2013. AFMA and the ATO have agreed an Administrative Solution whereby that provides a safe harbour for taxpayers that apply the proxy rate (determined with reference to BBSW plus an appropriate margin). The document sets out the terms of the Administrative Solution.
The AFMA Inflation Products Committee has provided guidance with respect to the re-referencing/rebasing of the Australian Headline CPI effective 24 October 2012.
This note sets out the purpose and methodology of the August 2010 Addendum and includes worked examples.
AFMA Partner Member Johnson Winter & Slattery has prepared this review of Mandatory Environmental Trading Schemes Operating in Australia.