ASX’s November Volumes Pointed Higher, Capital Raised Drops MoM

The Australian Securities Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term (ASX) has just reported its monthly activity report for November 2016, having revered a tepid decline incurred last month. The recent metrics are reflective of a global trend that witnessed growing trading volumes due to a November election in the United States.

For the month ending November 2016, the value of ASX-listed stocks, as measured by the global All Ordinaries Index, rose 1.9% MoM from October 2016 – the figure also compared to a declining expected future 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 reading of 15.2 in November 2016, up from 14.4 in October 2016, suggesting a more volatile month of trading.

Moreover, the ASX’s stock value in November rose nearly 2.0% and was outperformed relative to many other regional exchanges and market blocs, especially when weighed against leaders such as Japan (5.1%), the United States (3.4%), and Singapore (3.2%).

Metrics Breakdown

Moving to market specifics in November 2016, the ASX also managed to raise $5.5 billion in total capital during the month, which was lower by -15.4% MoM from $6.5 billion in October 2016. However, across its initial capital raise, the exchange also managed to raise $3.7 billion during the month of November 2016, reflecting a strong 68.2% MoM growth from $2.2 billion in October 2016.

By extension, the total value of cash markets for the ASX during November 2016 was $116.1 billion, up 24.6% MoM from $93.2 billion in October 2016 – in addition to this positive result, the ASX also reported a positive performance in its average daily value on-market, yielding a figure of $4.7 billion in November 2016, up approximately 23.7% MoM from $3.8 billion in October 2016.

The ASX also disclosed its futures trading statistics during November 2016, yielding a total of 11.8 million futures contracts traded during the month, or 6.3% MoM from 11.1 million contracts in October 2016. Average daily contracts were also trending higher at 529,927 in November 2016, vs. just 528,137 contracts in October 2016, nearly unchanged MoM.

Finally, the notional value of over-the-counter (OTC) interest rate derivative contracts centrally cleared during November 2016 was $445.0, against $323.9 billion back in October 2016 – this justified a healthy growth of 37.4% MoM.