When Issued (WI) Securities in Australia: What Investors Need to Know in 2026

‘When Issued’ (WI) refers to securities that are traded on a conditional basis after an announcement—such as a new government bond, hybrid, or share issue—but before the security is formally issued and settled. Essentially, WI trading lets investors agree on a price and terms before the security officially exists in the market.

• Common examples: Government and semi-government bonds, new corporate debt issues, and major initial public offerings (IPOs).
• Trading window: Begins after the official announcement and ends when the security is formally issued and settlement occurs.

WI trading is a well-established practice in some overseas markets, but in Australia, it has traditionally been more limited. However, this is changing as the market evolves.

Several developments are shaping WI trading in Australia in 2026:

ASX Infrastructure Upgrades

The Australian Securities Exchange (ASX) is modernising its settlement systems, making WI trading more efficient and transparent. The ongoing replacement of the CHESS system is expected to improve straight-through processing and reduce settlement risk for WI trades.

Increased Government Bond Issuance

The Australian Office of Financial Management (AOFM) continues to issue new government bonds to support various initiatives. As a result, WI trading windows are now a regular feature of the bond market calendar, giving investors more opportunities to participate in new issues before they are officially listed.

Greater Access for Retail Investors

WI trading, once mainly the domain of institutional investors, is now available to more retail clients through select brokers and trading platforms. This broader access means more investors can participate in WI opportunities, though eligibility and access may still vary between platforms.

Updated Guidelines and Shorter Settlement Cycles

In 2026, the ASX has introduced clearer rules for WI trading, including enhanced disclosure requirements and, in some cases, shorter settlement cycles (such as T+1 or T+2, depending on the instrument). These changes aim to reduce counterparty risk and improve confidence in the WI market.

WI trading offers several potential advantages for investors and institutions:

Price Discovery

WI prices can provide an early indication of where the official market may open, especially for large bond or hybrid issues. This can help investors gauge demand and market sentiment ahead of the official listing.

Portfolio Management

Fund managers and active investors can use WI trading to rebalance portfolios in anticipation of new issues. This can help manage exposure and smooth transitions as new securities enter the market.

Risk Management

WI trading allows participants to lock in prices and manage risk during the period between announcement and settlement. This can be particularly useful in volatile markets or when interest rates are changing.

However, WI trading also comes with important risks and limitations:

Settlement Uncertainty

WI trades are conditional on the actual issuance of the security. If the issuance is delayed or cancelled, WI trades may be unwound, which could result in losses or missed opportunities.

Price Volatility

WI prices can fluctuate significantly in response to market news or changing sentiment. This volatility can lead to gains or losses before the security is officially issued.

Limited Transparency and Liquidity

WI markets may be less liquid and less transparent than regular trading. While recent reforms are improving this, investors should be aware that trading volumes and price information may be limited compared to established securities.

If you are considering participating in WI trading in Australia in 2026, here are some practical steps to keep in mind:

1. Stay Informed About Upcoming Issues

Monitor announcements from the ASX, AOFM, and major issuers to identify upcoming WI trading windows. Being aware of the calendar can help you prepare for opportunities as they arise.

2. Understand Your Broker’s WI Trading Policies

Not all brokers or trading platforms offer WI trading, and eligibility criteria can differ between retail and wholesale clients. Check with your broker to understand their specific rules and whether you have access to WI trades.

3. Assess Liquidity and Risk

Before entering a WI trade, review available trading volumes and price spreads. Be mindful of the potential for settlement delays or cancellations, and consider how these risks fit with your investment strategy.

4. Review Tax Implications

Gains or losses from WI trades may be treated differently for tax purposes, depending on the timing and nature of the instrument. It’s important to understand how WI trading could affect your tax position. For more information on financial considerations, see our finance section.

5. Consider Your Experience Level

WI trading is generally best suited to investors who are comfortable with the nuances of pre-issuance pricing and the risks involved. If you are new to WI trading, consider seeking advice or starting with small positions until you are more familiar with the process.

• WI trading allows investors to agree on trades before securities are officially issued.
• Recent changes in Australia are making WI trading more accessible and transparent.
• WI trading offers benefits such as price discovery and risk management, but also carries risks like settlement uncertainty and price volatility.
• Not all brokers offer WI trading, and rules may vary between platforms.
• Understanding the risks and your own investment goals is essential before participating in WI trades.

What does 'When Issued' (WI) mean in Australian markets?

WI refers to securities that are traded on a conditional basis after an announcement but before they are officially issued and settled.

Can retail investors participate in WI trading in Australia?

Some brokers and trading platforms now allow retail investors to participate in WI trading, but access and eligibility can vary.

What are the main risks of WI trading?

The main risks include settlement uncertainty if the issuance is delayed or cancelled, price volatility, and potentially lower liquidity compared to regular trading.

How are WI trades settled?

WI trades are settled once the security is officially issued. Settlement cycles may be shorter in 2026, depending on the instrument and market reforms.