Sydney Futures Exchange: Commonwealth Bond Market Inquiry

SFE Corporation, the operator of Sydney Futures Exchange, welcomes the Government's review of the Commonwealth Government Securities (CGS) market. The tenor of the government's discussion paper suggests that the onus is on key market participants to persuade the Government of the deleterious consequences of any dismantling of the CGS market. SFE has confirmed with Treasury that it will be responding with a detailed submission. Once that submission is lodged it will become a public document and will be available to shareholders and users via SFE's website.

"The issues surrounding elimination of Government debt are complex." SFE's Managing Director & CEO, Mr Robert Elstone, said. "But the Government needs to recognise that it is contemplating raising the overall level of risk in the Australian financial markets to the detriment of all Australians and setting in train other adverse consequences for the economy and the investing public. The CGS market underpins much of the sophistication of the Australian financial system, which has taken decades to develop and should be preserved."