MEDIA RELEASE No: 2002-17 Date: 5 September 2002 Embargo: For Immediate Release

DOMESTIC MARKET DEALING ARRANGEMENTS

On 15 July, the Reserve Bank announced (Media Release 2002-14) that it would be introducing a new facility for intra-day repurchase agreements based on eligible bank accepted bills and negotiable certificates of deposit to assist banks to meet liquidity needs under Continuous Linked Settlement (CLS). Effective today, this facility is available for use by all eligible Exchange Settlement Account holders.

Subject to regulatory approval, CLS Bank is targetting a start date of 9 September.

The new intra-day repurchase facility complements the existing facility based on government and supranational securities. However, there are some important operational differences between the two facilities. The Reserve Bank has prepared additional detailed information on use of the new facility. An Information Paper can be obtained from the RBA by contacting the Domestic Markets Desk on (02) 9551 8321.

Enquiries:

Philip Lowe
Head of Domestic Markets
Reserve Bank of Australia
SYDNEY
(02) 9551 8300

James Whitelaw
Domestic Markets Desk
Reserve Bank of Australia
SYDNEY
(02) 9551 8320