Ahead of the iTraxx Australia index roll we would like to advise market participants that we are currently considering changes to the constituent selection rules, in part as a result of feedback we have received suggesting that we need to ensure the index continues to be representative of the cash market in terms of issuance and sector weighting. We are therefore proposing the introduction of an “Additional Entity List”, which would be used in addition to the DTCC Liquidity List to select a maximum of two of the largest Australian bond issuers that are currently not traded liquidly in the CDS market. This Additional Entity List would have ranking criteria based on largest amount of publicly traded debt outstanding.
We will publish our final decision in due course. If any market participants would like to provide feedback on the matter, please contact email@example.com