When Issued (WI) in Australia: 2025 Investor Guide

When Issued (WI) securities are no longer just a footnote in Australia’s financial markets. In 2025, with regulatory reforms and rising investor sophistication, WI trading is gaining new relevance for share, bond, and hybrid markets alike.

What Are ‘When Issued’ (WI) Securities?

‘When Issued’ (WI) refers to securities that are traded conditionally before they are officially issued. These transactions occur after an announcement (such as a new government bond, hybrid, or share issue) but before the actual settlement and delivery. In essence, WI trading lets investors lock in prices and manage risk ahead of the official listing date.

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

WI trading is standard in the United States and UK, but in Australia, its adoption has been more measured—until now.

WI Trading in Australia: 2025 Regulatory and Market Shifts

2025 has seen important changes in the Australian financial landscape:

• ASX Modernisation: The Australian Securities Exchange (ASX) is rolling out new settlement infrastructure, making WI trading more accessible and transparent. The CHESS replacement project is due to enhance straight-through processing, reducing settlement risk for WI trades.
• Government Bond Issuance: With the Australian Office of Financial Management (AOFM) increasing bond issuance to fund infrastructure and green initiatives, WI trading windows are now a key feature of the bond market calendar.
• Retail Investor Access: Several brokers and online trading platforms now enable retail clients to participate in WI trades, previously reserved for institutions.

In 2025, the ASX’s updated guidelines mean WI trading is more tightly regulated, with clear disclosure rules and shorter settlement cycles (T+1 or T+2, depending on the instrument). This has reduced counterparty risk and increased investor confidence.

Why WI Trading Matters: Opportunities and Risks

WI trading offers unique advantages for active investors and institutions:

• Price Discovery: WI prices often provide a preview of where the official market will open, especially for large bond or hybrid issues.
• Liquidity Management: Fund managers can rebalance portfolios in anticipation of new issues, smoothing transitions and managing exposure.
• Risk Hedging: Traders can lock in prices to hedge against market volatility between announcement and settlement.

However, WI trading is not without risk:

• Settlement Uncertainty: If the actual issuance is delayed or cancelled, WI trades may be unwound, potentially at a loss.
• Price Volatility: WI prices can swing sharply on news or changing market sentiment.
• Limited Transparency: While ASX reforms are helping, WI markets can still be less liquid and less transparent than regular trading.

For example, in early 2025, a major hybrid security from a Big Four bank saw its WI price fluctuate by nearly 2% in the week leading up to official listing, as interest rate expectations shifted after an unexpected RBA policy statement.

How to Approach WI Trading in 2025

For Australian investors looking to leverage WI opportunities in 2025, consider these steps:

1. Stay Informed: Monitor announcements from the ASX, AOFM, and major issuers for upcoming WI trading windows.
2. Understand Your Broker’s Rules: Not all platforms offer WI trading, and eligibility criteria may differ for retail and wholesale clients.
3. Assess Liquidity and Risk: Check WI trading volumes and spreads, and be aware of potential settlement delays or cancellations.
4. Review Tax Implications: Gains or losses on WI trades may be treated differently for tax purposes, depending on timing and instrument.

WI trading is best suited for experienced investors who understand the nuances of pre-issuance pricing and can manage the risks involved. As the ASX and AOFM continue to modernise, expect WI markets to play a bigger role in Australia’s capital markets ecosystem.