Australian Financial Markets Association

The Australian Financial Markets Association (AFMA) is an Australian industry association representing organisations active in financial markets and providing services to market participants. Founded in 1986, it works on policy advocacy, market conventions, documentation, professional conduct and education across areas including capital, credit, derivatives, foreign exchange and specialist markets. AFMA is a membership body, not a government regulator.^[1]

Role and scope

AFMA describes itself as an industry association promoting efficiency, integrity and professionalism in Australian financial markets. Its stated scope includes capital and credit markets, derivatives, foreign exchange and other specialist markets. The association’s current website says it represents more than 140 participants, including Australian and international banks, brokers, government treasury corporations, superannuation funds, asset managers, energy firms, carbon market participants and market infrastructure or professional-service providers.^[1]

The range of represented organisations reflects the connections among wholesale finance, investment, risk management and market infrastructure. AFMA’s work concerns the practices and policy conditions relevant to participants in these markets. It does not itself operate as a securities exchange, a central bank or a public regulator. Statutory financial regulation in Australia is undertaken by government bodies such as the Australian Securities and Investments Commission and the Australian Prudential Regulation Authority, within their respective mandates.

Membership and governance

AFMA distinguishes between Financial Markets Members, Partner Members and Affiliate Members. Financial Markets Members participate directly in Australian financial markets and generally hold an Australian Financial Services Licence. They may vote at the association’s annual general meetings and contribute to its committees. Partner Members provide services to market participants, including legal, accounting, technology and risk-management services. Affiliate Members comprise government agencies and international associations invited to participate in recognition of their role in financial markets.^[2]

Membership operates on a financial-year basis, from 1 July to 30 June, and members agree to observe AFMA’s Code of Conduct. Membership applications are reviewed and approved by the Board.^[2] The association says its Board is elected by Financial Markets Members. Committees and teams advise the Board in different areas, with committee arrangements prescribed by AFMA’s constitution.^[3]

This structure gives participating firms a route to contribute to industry positions and technical work. Committee activity is especially relevant where market practices depend on shared operational conventions or documentation. The association’s member-based governance also distinguishes it from agencies whose authority is established by legislation and whose responsibilities are set by government.

Policy advocacy

AFMA represents member perspectives in policy discussions concerning financial markets. It publishes submissions to consultations and government or regulatory proposals. The topics depend on the issues under consideration and may span market regulation, taxation, prudential policy, disclosure, energy and environmental products. The association’s submissions page records its responses and identifies the relevant topic area and recipient where that information is available.^[4]

Submissions communicate the association’s views and recommendations; they do not constitute law or regulatory decisions. AFMA is an industry representative, so its positions should be understood as advocacy on behalf of members rather than as official findings by government. The submissions provide a record of the association’s participation in policy processes and of matters it considers relevant to financial-market participants.^[4]

AFMA also maintains committees focused on markets and policy. It says its Market Committees help manage conventions, practices and documentation in over-the-counter (OTC) markets, contributing to the association’s work on efficient market operation.^[5] OTC transactions are negotiated outside a central exchange order book, often directly between counterparties or through intermediaries. Common standards can help participants interpret transaction terms and operational procedures consistently, although the terms of individual transactions and applicable legal obligations remain important.

Market conventions and documentation

A prominent part of AFMA’s work is the development and maintenance of market conventions and related materials. The association describes its conventions as industry-accepted standards intended to streamline market practice and support a consistent standard for Australian OTC markets. It says conventions are kept current by relevant markets and operations committees.^[6]

Conventions can specify practical details used in dealing and settlement, such as terminology, calculation practices, business-day arrangements or transaction procedures. Their role is to coordinate practice among market participants; they do not replace legislation, regulatory rules or contractual agreements. AFMA also makes available standard documentation and guides, including materials covering different financial-market products and transactions.^[6]

AFMA’s standards cover more than traditional banking and securities products. Its materials include conventions for areas such as interest-rate derivatives, cash markets, repos and energy-related markets. The range reflects the association’s stated remit across both established financial markets and specialist markets. The exact content and version of any convention can change, so users of a particular document need to consult the current edition published by AFMA.^[6]

Code of Conduct

AFMA publishes a Code of Conduct that sets out ethical principles and expectations for member organisations and their employees. The association says the Code is intended to support responsible decision-making and acceptable standards of behaviour when conducting business with clients, counterparties and colleagues, including in OTC and exchange-traded markets.^[7]

The Code is an industry framework, not a substitute for legal duties or regulatory requirements. AFMA’s guidance states that its principles operate alongside relevant legal obligations and the internal codes and controls of member firms. Members remain responsible for determining how to apply the framework to their own activities and for meeting requirements imposed by law and regulators.^[7]

This distinction matters because industry codes and statutory rules have different sources of authority. AFMA’s Code expresses standards adopted within the association’s membership framework; it does not give AFMA the public enforcement powers held by regulators. The association’s stated purpose is to encourage consistent conduct and professional standards among participants rather than to license or supervise the whole Australian financial sector.^[2][7]

Education and accreditation

AFMA provides accreditation and professional development programs for people working in financial markets. Its membership materials describe accreditation programs and continuing professional development among the services offered to members.^[2] The association also presents accreditation as a means of assessing relevant knowledge and skills.^[1]

Training and accreditation are part of the broader professional infrastructure of wholesale markets: participants need familiarity with market products, conventions, conduct expectations and operational processes. AFMA’s education activities complement, but do not replace, qualifications, licensing requirements or compliance obligations established by law or by employers and regulators.

Relationship with Australian markets

AFMA’s activities connect it to a range of Australian financial-market institutions without making it their operator or regulator. For example, Australian banks and other financial firms may participate in markets supported by AFMA conventions, while securities are listed or traded through venues such as the Australian Securities Exchange. Government debt issuance and cash-market activity also involve public institutions, including the Australian Office of Financial Management and the Reserve Bank of Australia. These entities have distinct responsibilities; AFMA’s role is to represent members and support industry practices.

AFMA also represents participants in specialist markets that intersect with energy and environmental policy. Its website and submissions identify energy, carbon and environmental products among areas of activity.^[1][4] In these markets, policy changes can affect the contractual, operational and risk-management practices of financial and non-financial firms. AFMA’s role is to provide an industry forum and articulate member views; public authorities remain responsible for legislation and regulatory decisions.

Institutional character and limits

AFMA is best understood as a member-driven industry association and standards-setting forum. Its influence operates through representation, technical work, codes, conventions, documentation, education and consultation submissions. It does not set Australia’s official monetary policy, supervise financial institutions under statute, guarantee deposits, or run the country’s principal securities exchange. Those functions belong to public authorities and market operators with separate mandates.

The association’s conventions and codes can promote common practices among participating organisations, but their relevance depends on the applicable documents, contracts, membership commitments and law. A convention may be widely used without being a statutory rule. Similarly, an AFMA policy submission records the association’s argument in a public process but does not establish that the proposal was adopted by government. These distinctions are central to understanding AFMA’s place in Australia’s financial system.