Consultation Summary – BKBM Bank Paper Maturity Convention

The purpose of the consultation was to invite responses on a proposed change to the bank paper maturity convention from early/late to actual maturity date -/+ five business days, following a discussion at the 7 October 2021 NZFMA Rates Committee, and subsequent discussions with the BKBM Price-makers.

To date, the bank paper maturity convention has been based on an early/late month. Early means maturities on business days from the 1st to the 15th of the month and late refers to maturities on business days from the 16th to the end of the month.  In practice, this allows a bank issuing paper to determine the maturity date within this time frame.

The consultation sought feedback from all NZFMA stakeholders, including NZFMA members, benchmark subscribers and other interested parties, on the proposal to change the bank paper maturity convention.

The consultation opened on 13 December 2021 and closed on 31 January 2022. Since the consultation closed NZFBF has collated the responses and the discussed the matter internally, with the BKBM price-makers and with the NZFMA and its Rates Committee.

The final summary can be found here.