Briefs: Regulators welcome new guidelines on BBSW, Westpac caps account keeping fees, and more
ASIC and the Reserve Bank have each given a green light to new guidelines developed by the ASX for trading in bank bill swaps. The new framework provides guidance to market participants for trading of bank bills during the rate set window. It also lays out a process for traders to disclose pricing information to the ASX to support publication of BBSW."We believe the ASX BBSW guidelines will support the market's trust in the robustness and reliability of BBSW, as the market makes the transition to the new BBSW methodology based on trading in the rate set window," said ASIC commissioner, Cathie Armour. "Importantly, the ASX BBSW guidelines recognise that trades in bank bills should not be done for a purpose of seeking to influence the level at which BBSW is set or maintained." Westpac has moved to appease restive politicians in Canberra, announcing it will cap account-keeping fees on all personal bank accounts and remove some transaction charges. The head of Westpac's consumer business, George Frazis, signalled the fee changes in Sydney on Tuesday, Fairfax reported. The bank's chief executive, Brian Hartzer, is due to be grilled by a parliamentary committee this morning. Westpac has invested a further A$5 million in uno Home Loans, bringing its total funding of the "one stop" home loan platform to $26.5 million. Vincent Turner, uno CEO and founder, said the number of mortgage providers on its lending panel had risen to 21, including all four major banks. He added that uno is processing six times more monthly applications than at the same time last year, while the number of frontline staff has doubled in that time. The fintech said it has advised customers on more than A$1.3 billion in home loans to date. Around 60 percent of uno's customers receive advice from its home loan advisers prior to starting an online application. Queensland Treasury Corporation rated Aa1/AA+ by Moody's and S&P, respectively, has launched a new Australian dollar denominated benchmark bond. The term "benchmark" in this context is usually applied to a transaction of A$500 million or more. The issue will be due for redemption on 21 August 2030. Bankers running the transaction gave their initial price guidance as "a range of 74 to 77 basis points over the 10-year futures contract, and 67.5 to 70.5 bps over the 21 April 2029 [Commonwealth Government bond rate]". The transaction is expected to price on or before 11 October 2017, with the usual caveat: "subject to market conditions". Joint lead managers for the transaction are ANZ, Citigroup, Deutsche Bank and Westpac. The notes will be Rule 144A eligible. Despite repeatedly saying he would not discuss the progress of coalition negotiations, New Zealand's "kingmaker" Winston Peters continues to indicate that overseas investment is one of the top issues he wants addressed by any government he gives support to. Yesterday he told reporters that the planned sale of ANZ-owned UDC to the Chinese HNA Group, which he has long opposed, was