ASX 24 Participants are advised that ASX will re-establish the minimum price increment (‘tick’ size) for the 3 Year Treasury Bond Futures contract at 0.005% or 0.5 basis point from 0.01% or 1 basis point. The effective date will be 5.10pm on 18 July 2025 (Trade Date 21 July 2025), subject to participant readiness and regulatory clearance.

Background

The minimum price increment was increased from 0.5bp to 1bp for outright trades in October 2022. The change was undertaken in light of low levels of liquidity over multiple months. At that time ASX stated that the increase in minimum tick increment would be a temporary measure and defined liquidity levels were to be met and deemed sustainable before considering reverting to 0.5bp. 

ASX noted that order book liquidity was approaching the target levels early in 2024 and undertook a market consultation in Q4 2024 to gauge market sentiment regarding the minimum price increment. Based upon the overall results of the consultation, assessment of market conditions, liquidity and trading activity in the 3 Year Treasury Bond Futures contract, ASX has determined that a reduction in the minimum price increment is appropriate.

ASX acknowledges market feedback that changes to the minimum price increment on benchmark contracts creates friction for the market. Following this reversion to the level of 0.5 basis points, any changes will endeavour to be avoided unless necessitated by extreme conditions and supported by market consultation.

CDE and CDE+ Availability

To support customer testing of the minimum price change, the minimum price increment for the 3 Year Bond Futures will be set to 0.005% in CDE and CDE+.  Further details on timing will be provided via a Market Notice in due course.

What do I need to do by when?

ASX 24 Participants and vendors should note the effective implementation date above and consider and identify any changes required to support the change to the minimum price increment for the 3 Year Bond Futures contract. If you have any questions, please contact ASX at rates@asx.com.au.

Need more information?

Issued by

Allan McGregor, Senior Manager, Rates

Contact information

Allan McGregor
Allan.McGregor@asx.com.au

Or

Investor Support
(02) 9338 0000
www.asx.com.au/contact

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