On Jun. 18, 2025, ASX issued notices on procedures for the above amendments.
ASX published 3 year treasury bond futures minimum price increment tick change pricing fact sheet, the amended Operating rules, and finalized contract specifications.
Sets out minimum price increments for inter-commodity and intra-commodity spreads.
The notice also covers changes to bond roll period pricing, one session option settlement, serial and quarterly option settlement price and error resolution policy.
Participants and vendors are reminded that the change is available for testing.
On Sep. 9, ASX issued proposal to revise minimum tick increment.
ASX proposed revision of minimum tick increment for 3 year treasury bond futures.
Minimum price increment (tick size) at 0.010% or 1 basis point (bp) was set in 2022, except for the 5 business days before contract expiry when it is reduced to 0.002%.
Overview of Proposal
ASX proposed to reduce tick increment from 1 bp back to 0.5 bp, stakeholders can provide feedback on order book dynamics, liquidity, price formation, market quality.
Potential benefits of reduced tick increment include that it may lower execution costs, create more trading opportunities, as well as improve liquidity for market participants.
A reduction in the tick increment may lead to decreased liquidity provision, an increased risk of slippage, and necessary adjustments from liquidity providers.
Effectiveness
The notice is effective as of Sep. 9, 2024; consultation is open until Nov. 8, 2024.
May 2025 Tick Size Change
On May 19, 2025, ASX re-established a minimum price increment (tick size) for the 3-year treasury bond futures contract from 1 basis point to 0.5 basis points.
Target effective date is 5:10pm on Jul. 18, 2025, for trade date Jul. 21, 2025, subject to participant readiness and regulatory clearance; updated price increment will be available for testing on customer development environments (CDE and CDE+).
Testing from May 30, 2025 at start of the night session, for trade date of Jun. 2, 2025.
ASX also issued draft contract specifications for 3-year treasury bond futures reflecting the decreased minimum price increment; ASX recommends testing of minimum price increment configuration and has published detailed testing guidelines.
Jun. 2025 Procedures and Go Live Reminder
On Jun. 18, 2025, ASX issued notices on procedures for the above amendments.
ASX published 3 year treasury bond futures minimum price increment tick change pricing fact sheet, the amended Operating rules, and finalized contract specifications.
Sets out minimum price increments for inter-commodity and intra-commodity spreads.
The notice also covers changes to bond roll period pricing, one session option settlement, serial and quarterly option settlement price and error resolution policy.
Participants and vendors are reminded that the change is available for testing.
Regulators
ASX
Entity Types
B/D
Reference
Nt 0618.25.06, 6/18/2025; Nt 0479.25.05, Gd, 5/19/2025; Nt 1024.24.09, CP 9/9/2024
