Methodology used to determine asset liquidity in HQLA system

The request was refused by Australian Prudential Regulation Authority.

Laurence Davison

Dear Australian Prudential Regulation Authority,

When determining what asset classes qualify as high-quality liquid assets in Australia, APRA said in 2011 that it "has taken into account the amount of the instrument on issue, the degree to which the instrument is broadly or narrowly held, and the degree to which the instrument is traded in large, deep and active markets".

Can you please release documentation relating to the methodology used to make this determination, including for instance:
- Correspondence with banks and any other market participants (eg the ASX, trustees) around trading volume of assets in the open market.
- Other data available to APRA demonstrating that an asset class is or is not traded in "large, deep and active markets".
- Documentation available to APRA demonstrating "the degree to which the instrument is broadly or narrowly held".

Yours faithfully,

Laurence Davison

Freedom of Information, Australian Prudential Regulation Authority

Dear Mr Davison

 

I acknowledge your request as set out below. We are processing your
request and will respond to you soon.

 

Kind regards

 

APRA FOI Officer

 

AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY
1 Martin Place (Level 12), Sydney, NSW 2000
GPO Box 9836, Sydney, NSW 2001
T 02 9210 3000 | W [1]www.apra.gov.au

[2]http://www.apra.gov.au/PublishingImages/...

 

 

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Freedom of Information, Australian Prudential Regulation Authority

1 Attachment

Dear Mr Davison

Please see attached, APRA’s Notice of Decision to you dated 13 March 2017.

Kind regards

APRA FOI Officer

AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY
1 Martin Place (Level 12), Sydney, NSW 2000
GPO Box 9836, Sydney, NSW 2001
T 02 9210 3000 | W www.apra.gov.au

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