We needed to ensure that our local credit-based benchmark, BBSW, was included in the ISDA fallbacks and protocol. In time, the Reserve Bank will require securities that reference BBSW to include the relevant ISDA fallback provisions in order to be eligible as collateral in our market operations.
I know that there is a lot of good work already underway in industry towards developing market conventions in this area – including by the ASF. In the period ahead, we will be seeking views from market participants on how and when we are going to implement this new eligibility requirement for our market operations.