The Australian Stock Exchange’s (ASX) equity post-trade services were up 4.8 percent due to the increase in overall market activity, according to its half-year results.
The results, which were published on 14 February, emphasised how ASX is in the middle of a programme to upgrade its technology infrastructure. The upgrades includes updating the Clearing House Electronic Subregister System (CHESS) and associated operational infrastructure which is due to be completed in early 2021.
ASX found the exchange made a statutory profit of $246.1 million as of 14 February. This was up 6.8 percent, compared to the same period last year.
ASX’s derivatives and over-the-counter (OTC) markets revenue increased by 6.3 percent, this was mainly driven by a 5.3 percent rise in futures volumes. Derivatives and OTC markets contributed 35 percent of operating revenue.
The exchange said the rise was due to a rise in futures trading, Austraclear volumes and collateral management activity.
Collateral revenue rose 6.7 percent due to increases in transactions, depository balances and registry fees. Average balances within the ASX collateral service grew by 29 percent.
With the rise in equity market volatility over the past six months, ASX’s trading revenue rose 15.2 percent. This was driven by higher turnover.
Commenting on the results, Dominic Stevens, ASX’s managing director and CEO, said: “Each of our four businesses grew solidly, as did interest earnings, amid a period of heightened volatility, emphasising the benefit of ASX’s diverse business model.”
He added: “The result reflects the balanced approach we take to investing in the integrity of our core businesses and pursuing growth initiatives. It has allowed ASX to deliver another attractive return to shareholders. Throughout the half, we took steps to strengthen ASX’s operational and technological foundations, which help ensure our resilience and create a solid platform for growth.”
“ASX plays a critical and privileged role in Australia’s financial markets as a trusted, central and independent party. We work hard to enhance this to meet the rising expectations of our stakeholders.”
