When a note is used as a debt instrument without any related collateral, it is described as a(n)
Show Securities must meet certain criteria to be eligible for use in the Reserve Bank's domestic market operations. The Reserve Bank has the discretion to change its eligibility criteria at any time (subject to Section 9 of the CLF Operational Notes). 1. How to ApplyApplicants must submit all supporting documents, outlined in the application form, before the Reserve Bank will begin reviewing the application. Australian Government (AGS) and semi-government securities are automatically eligible. Short-term paper (less than 12 months to maturity) is assessed at the issuer level. All other securities are assessed individually. Any queries should be addressed to . 2. Eligibility CriteriaAll criteria must be met on application, and for the term of each transaction. The Reserve Bank can revoke eligibility at any time; where a security posted under repo has its eligibility revoked, the counterparty will be expected to substitute alternative eligible collateral. Table 1 lists securities that are eligible for transactions in the Reserve Bank's domestic market operations and various facilities. The Reserve Bank only accepts certain securities for some transactions.
2.1 Primary criteriaThese criteria apply to all securities. Some security types have additional criteria (section 2.2).
2.2 Additional criteriaThe following criteria apply to certain securities:
3. Related-party Exemptions for Self-securitisationsThe Reserve Bank may grant a related-party exemption to a counterparty for a self-securitisation which the Reserve Bank considers to be materially related to that counterparty. This exempts the security from criteria 11; the Reserve Bank would purchase the security from the counterparty in repos contracted under the Standing Facilities, Exceptional Liquidity Assistance and the Term Funding Facility, but not in open market operations. |