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Notice
Block Liquidity Incentive Program - ASX-Bloomberg AusBond Index Futures
ASX is seeking expressions of interest from firms interested in facilitating block liquidity in the upcoming Bloomberg AusBond Composite Index Futures and Bloomberg AusBond Credit Index Futures, which are scheduled to launch on 24 August 2026, subject to internal approvals and industry readiness.
This non-binding expression of interest process is intended to identify firms that may wish to participate in the Block Liquidity Incentive Program and support the establishment of block trading liquidity from the commencement of trading.
The program aims to support liquidity during the first two years of the contracts and facilitate engagement between market participants seeking to execute block trades.
Participation remains subject to acceptance by ASX and any further terms and conditions notified by ASX.
Commercial Arrangement
Under the program, an amount equivalent to 35% of gross block trading revenue attributable to registered block trades will be allocated to participating firms and distributed proportionately according to their share of eligible block trading activity.
The revenue share amount will be calculated based on block trading fees collected by ASX. Accordingly, eligible block trades executed during any fee holiday period will not be included in the revenue share calculation.
The revenue share amount will be calculated and paid annually in arrears at the end of each financial year to the relevant ASX 24 Clearing Participant, who will be responsible for forwarding this amount to the participating entity where applicable.
Key features of the program include:
· Block trades will be defined as transactions of 10 contracts or more.
· Participating firms will be publicly identified on the ASX website as firms willing to facilitate block transactions in the contracts.
· Participating firms will nominate contact details to be published on the ASX website, enabling market participants to engage with firms regarding potential block trading opportunities.
· Block trades will be negotiated bilaterally between counterparties and subsequently reported and cleared through ASX in accordance with the applicable operating rules and procedures.
· ASX does not currently intend to limit the number of participants eligible to participate in the program.
Important Notice
ASX reserves the right, in its absolute discretion, to amend, suspend or discontinue the Block Liquidity Incentive Program at any time, including the eligibility criteria, administration, operation and allocation methodology of the program. Participation in the program does not give rise to any contractual right to receive payments beyond those determined by ASX in accordance with the program terms. ASX is not involved in the negotiation of any transaction between market participants and participating firms and accepts no responsibility for any such dealings.
What do I need to do by when?
Participants wishing to participate in the Block Liquidity Incentive Program should email nita.kong@asx.com.au and provide the following details:
1. the legal entity name that will participate in the program;
2. the participant's elected ASX 24 Clearing Participant;
3. the participant’s trading account identifier(s); and
4. the name, email address and telephone number of the nominated contact person(s) to be published on the ASX website.
Need more information?
Issued by
Nita Kong, Product Manager, Rates