Australian Securities Exchange (ASX)

MoneyBestPal Team
The primary stock exchange in Australia and one of the largest in the Asia-Pacific region.

The Australian Securities Exchange (ASX) is the primary stock exchange in Australia and one of the largest in the Asia-Pacific region. Equities, derivatives, clearing and settlement, connectivity and data, and market analytics are just a few of the many products and services it provides.

The History of the ASX

The first stock market was founded in Melbourne in 1861, and that is when the ASX first began. Different Australian towns, including Sydney, Brisbane, Adelaide, Hobart, and Perth, saw the establishment of other stock exchanges over the course of the following century. The Australian Associated Stock Exchanges (AASE), which was formed in 1987 with the merger of several exchanges, functioned independently up to that point.

The Australian Stock Exchange Limited, which demutualized and listed on its own market first in the world, took the place of the AASE in 1998. The Australian Securities Exchange was founded in 2006 following the merger of the Australian Stock Exchange and the Sydney Futures Exchange. The Australian Securities and Investments Commission (ASIC) is in charge of overseeing the ASX Group, as it is currently known, which is governed by the Corporations Act of 2001.

The Performance of the ASX

Two trading platforms are run by the ASX: ASX Trade for stocks and ASX Trade24 for derivatives. The S&P/ASX 200, which monitors the performance of the 200 largest and most liquid businesses listed on the ASX, serves as the primary benchmark index for the Australian equities market. The index is frequently used as a stand-in for the Australian economy and accounts for around 80% of the equity market value in that country.

The S&P/ASX 200 index experienced a monthly decrease of -1.34% in September 2022, following a -2.38% decline in August 2022, according to Statista data. The index rose to an all-time high of 7,431.40 points on July 13, 2022, but has since fallen as a result of worries about the expansion of the world economy, inflationary pressures, and the COVID-19 pandemic.

As of October 6, 2022, some of the best-performing stocks in the S&P/ASX 200 index included gold mining company Ramelius Resources Limited (RMS), which increased 6.02%, gold exploration company De Grey Mining Limited (DEG), which increased by 3.24%, and global insurer QBE Insurance Group Limited (QBE), which increased 2.71%. On the other hand, some of the worst-performing stocks included Chalice Mining Limited (CHN), a mineral exploration company, which fell 5.31%, PEXA Group Limited (PXA), an online property exchange network, and Magellan Financial Group Limited (MFG), an investment management firm, which plunged 18.50%.

The Future Outlook of the ASX

To satisfy the changing demands of its clients and stakeholders, ASX continuously innovates and broadens its offerings. Some of the recent and future developments include:
  • Launching Synfini, a platform that offers distributed ledger technology (DLT) as a service and enables customers to create and deploy DLT applications across a safe and expandable network.
  • Replacing CHESS, a new DLT-based system that will improve functionality, security, and efficiency over the current clearing and settlement system for stocks.
  • Introducing new products and services, such as Australian Carbon Credit Units (ACCU), which are marketable certificates that reflect one tonne of greenhouse gas emissions averted or eliminated from the environment.
  • Collaborating with Chief Executive Women (CEW) to carry out the Senior Executive Census 2022, which assesses the proportion of women in senior roles at ASX-listed businesses.

The Australian Securities Exchange (ASX) is an essential component of the country's financial system and economy, giving investors, issuers, intermediaries, and regulators access to capital, liquidity, risk management, and information. ASX seeks to provide value for its clients and shareholders as well as contribute to the development and prosperity of Australia by keeping at the forefront of technology and innovation.