ASX Launches Retail Interest Rate Market

Australian retail investors have a new and exciting opportunity to diversify their portfolios with the launch of the Australian Stock Exchange's screen-traded Interest Rate Market tomorrow. This will make it as easy to identify, trade and settle retail interest rate securities as it is for shares. ASX's managing director, Mr Richard Humphry, said "ASX views the introduction of this new market as another important step towards Australia becoming a global Financial Centre. "To date, much of the emphasis has been placed on the development of equity markets. In pursuing the overall objective of a global Financial Centre, the attention now needs to be expanded to include developing the Australian retail fixed interest sector." In time, the ASX Interest Rate Market will provide investors with access to a wide range of securities. In the current round of changes, ASX's initiative will enhance the trading and settlement of corporate debt. In this regard a number of well known household names have listed, or are in the process of listing, interest rate securities. They include: NAB, PBL, Colonial, AMP, Macquarie Bank, Woolworths. ASX is now actively pursuing greater representation of Government securities. We believe there is considerable benefit to having these securities included as part of the market, from both an investor and a public policy perspective. The Minister for Financial Services and Regulation, the Hon. Joe Hockey MP, recently said "The creation of a retail debt market signals a new stage in the maturing of Australia's capital raising markets and will provide further evidence of Australia's move towards becoming a centre for global finance.'' An extensive education program consisting of seminars, workshops and on-line education is underway. ASX's web site (www.asx.com.au/irm) will be regularly updated and include details of interest rate securities listed on ASX, explanations of credit ratings and other relevant information to assist investors in understanding interest rate securities. "The new Interest Rate Market will provide investors with a much wider range of securities and enable them to readily and effectively implement their investment diversification strategies,'' Mr Humphry said.