ASX welcomes today's announcement by the Treasurer, the Hon Scott Morrison, that the Government is committed to putting in place the conditions needed for safe and effective competition in cash equities clearing. The concurrent relaxation of ownership restrictions on ASX was a recommendation of the Financial System Inquiry. The change to make ASX's ownership restrictions consistent with banks and insurance companies is appropriate given ASX's role in today's financial markets. The Treasurer retains important powers which can be exercised in the national interest.
ASX supports well-regulated, open and competitive financial markets.
The Treasurer's statement confirms that Australia's regulatory agencies will not recommend approval of any clearing licence applications until the conditions that support the Government's policy for safe and effective competition are established. ASX remains the sole provider of clearing services for cash equities in the meantime. ASX will also maintain its commitment to the Code of Practice that sets out how it manages its clearing and settlement infrastructure on behalf of the market. ASX has also announced that from 1 July 2016 its equities clearing fee will be cut by 10%
On 11 February 2016, ASX Limited (ASX) announced its half-year results for the six months to 31 December 2015 (1H16). Results were positive, with activity growth across all major areas. The listings market remained strong, with 77 new companies listing and almost $55 billion in IPO and secondary capital raised. Equity market activity was also stronger, with on-market value traded on ASX increasing 16.6% to more than $4 billion per day.
For the six months, profit after tax was $213.1 million, up 7.3% on the prior corresponding period (1H15). Based on the Group's segment reporting the key items were:
• Revenues $376.2 million, up 7.9%
• Expenses $85.1 million, up 4.4%
• Earnings per share 110.2 cents, up 7.3%.
New listings for the month were APOLLO Series 2015-1 Trust (AOL), CYBG PLC (CYB), Ding Sheng Xin Finance Co. Limited (DXF), Global Fortune Investment Limited (GFI), Henry Morgan Limited (HML), iCandy Interactive Limited (ICI), Tesserent Limited (TNT) and Vectus Biosystems Limited (VBS).
De-listings for the month were Coffey International Limited (COF), Crusade Euro Trust No.1E OF 2006 (CTK), iProperty Group Limited (IPP), Mooter Media Limited (MMZ), M2 Group Ltd (MTU), Octagonal Resources Limited (ORS), SERIES 2007-1 Torrens Trust (TRQ), UXC Limited (UXC) and Veda Group Limited (VED).
ASX GROUP MONTHLY ACTIVITY REPORT – FEBRUARY 2016
The value of ASX-listed stocks, as measured by the All Ordinaries Index, fell 2.1% in February 2016. Declines were also observed in other major markers including Japan down 8.5%, Germany down 3.1%, Hong Kong down 2.9% and the US down 0.4%. Singapore was up 1.4 % and the UK was up 0.2%.
Positive revenue growth of 7.9%
•Growth in Listings, Trading Services and Post-Trade Services
•Derivatives and OTC Markets flat with fee reductions in futures offsetting volume growth
•Revenue reporting aligned to four main businesses under new ASX management structure