
Exchange operator ASX posts rise in new listings and capital growth, shares jump
Feb 13 (Reuters) - Australian exchange operator ASX (ASX.AX), opens new tab said on Thursday it had recorded higher new listings and total quoted capital in the first half and flagged the momentum was continuing into the second half, leading shares to close 5% higher.
ASX said its operating revenue reached a record high for the six months ended December 31, reflecting a lift in demand for derivatives market data, rising listing fees and higher trading in the cash market.
ASX shares surged as much as 9.2% during trading, the biggest intraday rise in nearly five years.
It reported a 10.1% rise in first-half underlying net profit to A$253.7 million ($159.70 million), beating consensus estimates by 2.8% and said it would pay an interim dividend of A$1.112 a share.
ASX said increased trading in the Australian market was on the back of changing expectations for global interest rates that coupled with major geopolitical disturbances drove volatility in markets.
Initial public offerings also increased in the Australian market, rising to $2.01 billion of net proceeds in 2024, the highest level since 2021, according to LSEG data.
ASX has faced headwinds from regulatory scrutiny due to its inability so far to replace its CHESS clearing and settlement system, after an outage in December.
The exchange operator said it was planning the first industry test environment for the first release of the new CHESS's clearing services to open later this month.
Costs associated with the failed CHESS replacement have been one of the major investor concerns about the company. ASX reported total expenses of A$220.3 million in the first half, which was flat compared to the prior year.
It also reaffirmed its expense growth guidance of between 6% and 9% for the current financial year.
"The exchange showed the first signs of stabilization in cost growth, an issue since the botched replacement project for its clearing system," said Roy Van Keulen, an analyst at Morningstar.

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles

Finextra
3 hours ago
- Finextra
LSEG to provide trading technology to Brazilian digital exchange A5X
LSEG (London Stock Exchange Group) today announced that it has signed a strategic agreement to provide its trading, clearing, and market surveillance technology to A5X, S.A. (A5X), Brazil's first next-generation derivatives and futures exchange of its kind. 0 This announcement follows intensive joint design efforts to tailor LSEG's systems specifically for the Brazilian market, regulators, and A5X's unique requirements, a critical step in the platform's development and a key enabler of its swift and successful deployment. Under the agreement, LSEG will deliver its integrated market infrastructure technology suite, including pre-trade risk management, ultra-low latency matching engine, market data distribution and real-time surveillance, and will provide end-to-end post-trade platform including clearing, settlement, and risk management. A5X will operate LSEG's suite, integrating it into its state-of-the-art technology ecosystem. Designed for rapid configuration and seamless upgrades, the combined solution brings a powerful technology stack to the Brazilian market to help drive growth, liquidity, and innovation. Ron Lefferts, Group Head of Sales & Account Management, LSEG: 'As Brazil's economy grows and its markets continue to evolve, LSEG will deploy its real-time insights, performance analytics, and market infrastructure expertise to empower A5X in its journey of creating a more robust, innovative and efficient market in Brazil. Embedded in financial systems worldwide, our technology powers economies by strengthening market resilience, supporting compliance, and enabling traders to make data-driven decisions.' Carlos Ferreira, Chief Executive Officer, A5X: "We are incredibly honored to have the opportunity to bring LSEG to our side on the journey of creating a more efficient and innovative market in Brazil, driving growth and transformation. A5X was born to improve the experience of all investors in Brazil and the technology partnership with LSEG, combined with the access to its deep knowledge of global markets and products, materially strengthens our position to achieve this goal.' A5X aims to be ready for regulatory testing by Q4 2025 and for commercial launch of the new platform in H1 2026. The partnership lays the groundwork for a seamless, end to end derivatives and futures ecosystem in Brazil and this could significantly reshape Brazil's financial landscape, designed to accelerate product innovation, enhance price discovery and streamline operational risk across the trade lifecycle.


Reuters
5 hours ago
- Reuters
US wholesale inventories in April revised higher
WASHINGTON, June 9 (Reuters) - U.S. wholesale inventories increased in April amid stockpiling of prescription medication in anticipation of tariffs from the Trump administration. Stocks at wholesalers rose 0.2% instead of being unchanged, as estimated last month, the Commerce Department's Census Bureau said on Monday. Economists polled by Reuters had expected last month's estimate would be unrevised. Inventories, a key part of gross domestic product, climbed 0.3% in March. They advanced 2.3% on a year-over-year basis in April. Wholesale stocks of prescription medication surged 1.3% in April. There were also increases in apparel, motor vehicle, groceries and professional equipment inventories. President Donald Trump has said he would impose tariffs on imports of pharmaceutical products that have long been spared from past trade disputes due to the potential for harm to patients. Apart from drugmakers, businesses front-loaded imports in the first quarter, seeking to avoid Trump's sweeping duties on foreign goods, resulting in a large trade deficit that subtracted a record 4.90 percentage points from GDP. The front-running faded in April, leading to a record decline in imports and the overall trade deficit. While the contraction in the deficit at face value suggests trade could significantly add to gross domestic product in the second quarter, economists say some of the boost could be offset by low inventories. Inventory accumulation increased at a rate of $163.0 billion in the first quarter. The economy contracted at a 0.2% annualized rate in the January-March period, the first GDP decline in three years. It grew at a 2.4% pace in the fourth quarter. Sales at wholesalers edged up 0.1% in April after jumping 0.8% in March. At April's sales pace it would take wholesalers 1.30 months to clear shelves, unchanged from March.


Reuters
6 hours ago
- Reuters
Australia regulator trials faster IPO process as listings hit decade low
SYDNEY, June 10 (Reuters) - Australia's securities regulator said on Tuesday it would trial changes to speed up initial public offerings that are at a decade low by implementing recommendations from earlier reviews and allowing faster access for retail investors. The Australian Securities and Investments Commission (ASIC) said the changes could shave as much as one week off the typical 20-week IPO process and reduce deal execution risk. The trial will begin on Tuesday and last for two years, the regulator said. "Creating a more streamlined IPO process underscores our commitment to ensuring our public markets remain attractive to companies and investors," ASIC Chairman Joe Longo said in a statement. Longo said the funds raised through IPOs were at the lowest level in more than a decade, with only A$4.2 billion ($2.74 billion) raised last year compared to A$22.9 billion in 2014. ASIC's new measures come just days after Virgin Australia ( opens new tab launched a closely watched A$685 million IPO that attracted strong investor demand. ASIC said the changes applied to companies seeking to list on the Australian Securities Exchange (ASX) ( opens new tab through "fast-track" status, with a projected market capitalisation above A$100 million and no ASX-imposed escrow. Most Australian IPOs are carried out through a front-end book-building process, which means the price is set and investor bids are taken ahead of the prospectus being reviewed and approved by Australian regulators. ASIC and the ASX have been under pressure to speed up the IPO vetting process, to reduce the time investors are exposed to market fluctuations while a prospectus is under review. Under the planned changes, companies would be able to submit a confidential prospectus or product disclosure statement at least 14 days before formal lodgement for ASIC review. ASIC said it would also adopt a "no action" position allowing eligible companies to begin accepting retail investor applications during the standard seven-day exposure period. Typically, retail investor orders are taken after the prospectus becomes public following the regulator's reviews. The trial was also a part of a broader review of regulatory settings around IPOs, ASIC said. "While we do not see regulatory settings as the silver bullet, we have received lots of ideas and are considering further regulatory adjustments to support a strong and well-functioning market," Longo said. ($1 = 1.5354 Australian dollars)