Media Release Domestic Market Dealing Arrangements

In November 2008, the RBA announced an expansion of the range of securities eligible for its repurchase operations to include a wider range of private sector securities. These arrangements applied until at least June 2009. The Bank has reviewed these arrangements and has decided to continue with the expanded list of collateral.

The list of eligible securities for the Bank's market operations comprises two broad classes: General Collateral and Private Securities.

General Collateral consists of:

• Commonwealth Government Securities;
• Securities issued by state government and territory central borrowing authorities;
• Domestic issues by supranationals, foreign governments and institutions with a foreign government guarantee; and
• Domestic issues guaranteed by the Australian Government.

Private Securities consists of:

• Bills and Certificates of Deposit issued by authorised deposit-taking institutions (ADIs) with an Exchange Settlement account;
• Commercial paper, including asset-backed commercial paper, rated P-1 (or equivalent);
• Long-term securities issued by ADIs that are rated A3 or higher (or equivalent); and
• Long-term securities, including asset-backed securities, rated AAA (or equivalent).

Specific details of the eligibility criteria are available on the RBA website.