ASX sees 5.1 percent profit in 2017
16 February 2018 Sydney
Image: Shutterstock
The Australian Stock Exchange (ASX) saw its net profit after tax increase 5.1 percent to $230.5 million in its half-year results ending 31 December 2017.
A continued success in attracting technology and foreign company listings was among ASX’s other achievements, as well as a new futures trading platform attracting offshore customers, and an increase in ASX net service feeds.
ASX also saw a 5.8 percent increase, compared to H1 2017, in the use of derivatives and over-the-counter (OTC) markets due to rise in futures trading, OTC clearing and collateral management activity.
The exchange also saw growth within its Australian Liquidity Centre.
The results come after ASX announced in December that it was replacing its Clearing House Electronic Subregister System (CHESS) with a distributed ledger technology (DLT) platform developed by its partner Digital Asset.
The decision followed two years of testing and development. The technology is designed to enhance the exchange’s clearing and settlement transactions through better record keeping, reduced reconciliation, better quality data and faster transaction times.
Dominic Stevens, ASX managing director and CEO, said: “The first six-months of the financial year have produced a pleasing result for ASX. Our diversified business model continues to deliver solid financial and operational performance, and attractive returns to shareholders, with our interim dividend rising 5.1 percent to 107.2 cents per share.”
“We have also continued to innovate and invest in initiatives that both develop our core businesses and unlock new growth opportunities.”
Commenting on the new post-trade platform, Stevens added: “Our decision to replace CHESS with a next generation post-trade platform using DLT is an example of this. After extensive testing and stakeholder consultation, we are confident that DLT will meet the needs of Australia’s financial marketplace for improved functionality and efficiency, and maintain the highest regulatory and operational standards.
“We are now preparing to provide stakeholders in March with the scope of day one functionality and how we will transition to the new system. It’s an exciting development and we think it will put Australia at the forefront of innovation in financial markets.”
A continued success in attracting technology and foreign company listings was among ASX’s other achievements, as well as a new futures trading platform attracting offshore customers, and an increase in ASX net service feeds.
ASX also saw a 5.8 percent increase, compared to H1 2017, in the use of derivatives and over-the-counter (OTC) markets due to rise in futures trading, OTC clearing and collateral management activity.
The exchange also saw growth within its Australian Liquidity Centre.
The results come after ASX announced in December that it was replacing its Clearing House Electronic Subregister System (CHESS) with a distributed ledger technology (DLT) platform developed by its partner Digital Asset.
The decision followed two years of testing and development. The technology is designed to enhance the exchange’s clearing and settlement transactions through better record keeping, reduced reconciliation, better quality data and faster transaction times.
Dominic Stevens, ASX managing director and CEO, said: “The first six-months of the financial year have produced a pleasing result for ASX. Our diversified business model continues to deliver solid financial and operational performance, and attractive returns to shareholders, with our interim dividend rising 5.1 percent to 107.2 cents per share.”
“We have also continued to innovate and invest in initiatives that both develop our core businesses and unlock new growth opportunities.”
Commenting on the new post-trade platform, Stevens added: “Our decision to replace CHESS with a next generation post-trade platform using DLT is an example of this. After extensive testing and stakeholder consultation, we are confident that DLT will meet the needs of Australia’s financial marketplace for improved functionality and efficiency, and maintain the highest regulatory and operational standards.
“We are now preparing to provide stakeholders in March with the scope of day one functionality and how we will transition to the new system. It’s an exciting development and we think it will put Australia at the forefront of innovation in financial markets.”
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