ASX Revenues Climb 6.5% in the First Half of Fiscal 2019

The Australian Securities Exchange (ASX), the primary securities exchange in Australia, has announced the preliminary financial results for the first half of its 2019 fiscal year on a Group level, showing a solid performance for the exchange, thanks in large part to an uptick in market activity across all of its businesses.

The first half of the exchange’s 2019 fiscal year ended December 31, 2018. During the six months leading up to this date, ASX achieved revenue of AU$424.7 million ($302.3 million), which is AU$26.0 million more than that achieved in the first half of the Group’s 2018 fiscal year.

Converting this to a percentage, on a statutory basis, this is up by 3.8 percent year-on-year. On a like-for-like accounting basis, it’s up by 6.5 percent when compared to the first half of fiscal 2018.

Derivatives and OTC Markets See Solid Performance on ASX

This uptick in revenue was driven by solid performance across its businesses. According to the results, this includes stronger derivatives and over-the-count (OTC) markets which is thanks to a rise in futures trading, Austraclear volumes and collateral management activity.

Specifically, revenue for the derivatives and OTC markets increased by 6.3 percent when measured against the first half of fiscal 2018. During the period, futures volumes jumped by 5.3 percent.

Revenue as a result of trading services on the exchange also managed to increase by 8.6 percent year-on-year. This was driven by a solid uptick in cash market trading of 15.2 percent on an annual comparison.

Commenting on the results, Dominic Stevens, ASX Managing Director and CEO, said: “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, with our interim dividend rising 6.7% to 114.4 cents per share."

“The key performance drivers of our businesses were a 38% increase in capital raised to $62 billion, underpinned by the demerger and listing of Coles; a greater than 5% rise in the number of futures contracts traded, particularly in SPI equity futures; an increase of more than 15% in cash market trading amid market Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term; and the continued expansion in the number and variety of financial market participants in ASX’s Australian Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term Centre (ALC), spurring demand for our technical and information services.”