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Australian Securities Exchange (ASX)

The Sydney-Australia-based financial market exchange

What is the Australian Securities Exchange (ASX)?

The Australian Securities Exchange (ASX) is one of the world’s leading financial market exchanges based in Sydney, Australia. As a fully functioning securities exchange, the ASX provides a number of services, such as listings, trading, clearing, settlements, technical and information services, and post-trade services.

 

Australian Securities Exchange (ASX)

 

The Australian Securities Exchange is also the largest interest rate derivatives market in Asia. The ASX’s origin as a national exchange goes back to 1987. In 2006, the Sydney Futures Exchange and the Australian Stock Exchange merged. Furthermore, in 2010, the Australian Securities Exchange launched a new group structure and is now referred to as the ASX Group.

 

Summary

  • The Australian Securities Exchange (ASX) is one of the world’s leading financial market exchanges. 
  • In 2006, the Sydney Futures Exchange and the Australian Stock Exchange merged to form the Australian Securities Exchange.
  • The ASX is ranked fifth by the World Economic Forum in financial systems and capital markets.

 

Types of ASX Markets

The Australian Securities Exchange operates in many markets. Also, it oversees financial compliance in the ASX markets and promotes corporate governance. The following are some of the markets that the ASX operates in:

  • Bond market
  • Derivatives market
  • Equity market
  • Financial development
  • Foreign exchange market
  • Funds management

 

The Australian Securities Exchange bond market is the third-biggest in Asia. It is also the eighth-largest equity market in the world, with a total market capitalization of $2 trillion.

Additionally, the ASX is ranked 5th by the World Economic Forum in financial systems and capital markets, in addition to being the seventh-largest foreign exchange market based on global turnover.

 

History of the Australian Securities Exchange

In 1871, the Sydney Stock Exchange was established and continued to operate only until it was merged with other state-based exchanges to form the Australian Stock Exchange in 1987. In 1937, the Australian Associated Stock Exchange was established and would become the predecessor to the ASX. In 1942, Australian markets were controlled by the Australian Government; however, late in 1947, open-market conditions were resumed.

In 1960, the Sydney Futures Exchange started to trade as the Sydney Greasy Wool Futures Exchange; it was done to provide wool farmers in Australia with hedging facilities. Additionally, in 1961, the Australian Associated Stock Exchange began to develop an educational program. In 1962, three-letter company codes were developed for listed stocks.

In 1970, the Securities Industry Act was established. In 1987, the Australian Stock Exchange was formed. Later, in 2006, the Sydney Futures Exchange merged with the Australian Stock Exchange to form the Australian Securities Exchange. In 2012, the Australian Liquidity Centre was formed and was made to house the Australian Securities Exchange core trade executions.

 

ASX’s Trading Systems

ASX Trade and ASX Trade24 are the two trading platforms for the Australian Securities Exchange.

 

1. ASX Trade

ASX Trade is used for the trading of equity securities in the Australian Securities Exchange, and the ASX Trade24 is used for the trading of derivative securities. ASX Trade is based on the NASDAQ OMX system. It is also said to be one of the fastest trading platforms in the world.

 

2. ASX Trade24

ASX Trade24 is globally distributed with gateways in New York, London, and Sydney, and it is a 24-hour trading platform. Additionally, since ASX Trade24 is a 24-hour trading platform, it can maintain two active trading days. The normal trading times for the Australian Securities Exchange are from 10:00 a.m. to 4:00 p.m., and the market is open on weekdays.

Each trading day includes a pre-market session, which lasts from 7:00 a.m. to 10:00 a.m. The market is closed on eight holidays – Anzac Day, Australia Day, Boxing Day, Christmas Day, Easter Monday, Good Friday, New Year’s Day, and the Queen’s birthday.

 

ASX Careers

The Australian Securities Exchange offers a wide range of careers throughout a spectrum of specializations – most of which are located in Sydney, Australia. Some of the careers the ASX offers include compliance advisors, data engineers, marketing managers, and network engineers. The exchange prides itself on being an Equal Opportunity Employer.

 

Additional Resources

CFI is the official provider of the Certified Banking & Credit Analyst (CBCA)™ certification program, designed to transform anyone into a world-class financial analyst.

In order to help you become a world-class financial analyst and advance your career to your fullest potential, these additional resources will be very helpful:

  • New York Stock Exchange
  • Capital Markets
  • Vancouver Stock Exchange (VSE)
  • Financial Markets

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