Amendment to Terms and Conditions for Commonwealth Government Securities (CGS)

18 February 2002

The Terms and Conditions for Treasury Bonds, Treasury Indexed Bonds
and Treasury Notes have been amended to reflect:

  • the migration of CGS holdings and related settlement functions from
    the Reserve Bank Information Transfer System (RITS) to the Austraclear
    System operated by the SFE Corporation Limited; and
  • a change in the manner that cash settlement amounts associated with
    tenders are calculated.

Migration of CGS from RITS to Austraclear

From today, the settlement of CGS tenders will take place in the Austraclear
System rather than in RITS. Settlement of stock allocated at tenders will
take place in the Austraclear System during system hours, as defined in
the Austraclear System Regulations and Operating Manual, on the day specified
in the official announcement of the tender.

In the case where the Commonwealth is a seller of stock (i.e. conventional
issuance tenders and destination stock in conversion tenders) settlement
will occur through the Reserve Bank Austraclear branch RBAATS. In the
case where the Commonwealth is a purchaser of stock (i.e. the offered
stock in conversion tenders) settlement will occur through the Reserve
Bank Austraclear branch RBAATP.

This move will not affect the procedures for bidding for CGS at tenders.
It will continue to be the case that only bids submitted electronically
in RITS by members of RITS in accordance with the RITS Regulations and
Conditions of Operation will be accepted. Successful bidders will continue
to be notified in the usual manner.

Cash settlement amount associated with tenders

The settlement price per $100 face value of Treasury Bonds and Treasury
Indexed Bonds purchased at tenders has previously been cash settled to
the ninth decimal place. This has been reduced to three decimal places,
thereby coming into line with the settlement convention in the secondary
market. Cash settlement of Treasury Notes will continue to be made to
the ninth decimal place.

Copies of the amended Terms and Conditions documents can be found at
www.aofm.gov.au.

Contact:
Michael Allen
Chief Executive Officer
(02) 6263 1100

 

Last updated: 5 March 2014