Sydney Exchange to quote stock yields

Press, 26 July 1976, Page 14

Sydney Exchange to quote stock yields

PA Sydney The Sydney Stock Exchange will introduce a new system of dealing in company loan and public securities, tor a trial period from August 9. Under the new system, i buyers and sellers will make! their bids and offers on a “net redemption yield to buyer" basis instead of a price basis as exists at. present. Sales will be effected at an agreed net redemption yield io buyer, and this yield will then be converted to a gross market price at the] fixed interest post and the transaction processed in the normal way. Under the existing system, the net redemption yield required. or relinquished, must be translated to a price before bids and offers can be recorded. This price must then be adjusted at regular

intervals to account for accrued interest, former interest or interest deductible. The new method of trading will enable buyers and sellers to record their bids and offers without delas. exchange general manager (Peter Marshman) said. “Once recorded, no adjustJ ments for interest are neces sary during the currency of the order. Dealing will be effec'cd as at present with the minimum bids in all issued being 0.05 per cent It is believed that this new system of trading in fixed interest securities will be a considerable improvement on the present one, and of interest to the investing public and fund managers who will he immediately aware of what reI turns are required or [offering in these securities, iMr Marshman said.