The Australian Financial Markets Association (AFMA) has announced that it will transfer administration of the BBSW benchmark rate to ASX. It is the intention of both parties that ASX will administer BBSW from 1 January 2017. The transfer is part of a new scheme for the regulation of financial benchmarks.
AFMA will continue to act as the calculation agent for ASX until the systems required to support the new methodology go live in 2017.
The new BBSW calculation methodology will be based on a volume weighted average price (VWAP) calculation that will replace the nationally observed best bid and best offer (NBBO) methodology as the primary calculation method. Background.