About OTC Market Conventions

OTC Market conventions are designed to reflect current market practices in the following OTC Markets - Cash, Repurchase Agreements, Negotiable and Transferable Instruments, Debt Securities, Debt Capital Markets, Forward Rate Agreements, Swaps, Interest Rate Options, Foreign Exchange and Foreign Exchange Options.

These conventions have been developed and approved by either the NZFMA Rates Committee or the NZFMA FX Committee.

The Conventions are not legislative or prescriptive in nature. Rather, they are supposed to mirror the consensus view of the market as to what are the most common practices in the respective markets. This will enable participants to avoid misunderstandings due to differing perceptions of common market conventions when dealing.

Conventions by nature can be varied at will by the mutual agreement of the counterparties to any trade. The decision always rests with the market and the participants.

Current Market Conventions

FX  Conventions:

• OTC Foreign Exchange Convention
• Convention for Auckland & Wellington Anniversaries

Rates Conventions:

• Conventions for Broker (Interbank) Trades
• Conventions for Auckland & Wellington Anniversaries
• OTC Debt Securities Convention
• Early/Late Convention
• Conventions for market hours on Christmas & New Years Eve