ASX Group (formerly the Australian Securities Exchange) is a multi-asset class exchange, offering primary and secondary market services, including listing, trading and price discovery, central counterparty services through ASX Clearing Corporation, and securities settlement for equities and fixed income markets via ASX Settlement Corporation.
The Australian Stock Exchange formed in 1987 following the integration of six independent stock exchanges. In 1987, the Stock Exchange Automated Trading System (SEATS) was introduced to replace the open outcry system that had been implemented since the early 1960s. SEATS had completely replaced floor trading on the Exchange by 1990.
In 2006 the Australian Stock Exchange merged with the Sydney Futures Exchange to form the Australian Securities Exchange. This exchange now operates under the brand name, ASX Group.
The Sydney Futures Exchange (SFE) began trading in 1960 as the Sydney Greasy Wool Futures Exchange (SGWFE) to facilitate hedging for Australian wool traders. SGWFE grew rapidly, and by the mid-1960s had become the world's leading futures market.
In 1987 the SFE became the first foreign exchange to market its futures and options products in the United States. Two years later SFE extended its normal floor trading with the introduction of SYCOM, an after-hours electronic trading platform. By 1999, SFE had closed down its trading floor, replacing the traditional open outcry system with 24-hour screen trading. SFE was the first Asia-Pacific exchange to receive approval from the U.S. Commodity Futures Trading Commission (CFTC) to set up trading terminals in the United States.
In 2006 the Sydney Futures Exchange merged with the Australian Stock Exchange to form ASX Group, which was known as the Australian Securities Exchange until it was rebranded in 2010.
ASX Group operates two trading, clearing and settlement platforms; ASX Trade (Australian Stock Exchange) for equity and related equity derivative products, and ASX Trade24 (Sydney Futures Exchange), for interest rate, equity index and commodity futures products, and options and futures on Contracts for Difference (CFDs). Orders are executed on a price/time priority basis.
ASX Trade is a multi-asset trading platform, offering trading in equities, exchange-traded options, interest rate securities and warrants. The platform is powered by NASDAQ OMX’s Genium INET system.
ASX Trade24 facilitates global trading in derivatives, allowing multi-legged trading strategies with legging risk managed via inter and intra-commodity spread order processing and implied price generation functionality. ASK Trade24 lists Australia's key benchmark futures and options contracts listed over Treasury Bonds, bank bills, cash rates, S&P/ASX Equity Indices, energy and commodities. ASX Trade24 also facilitates trading in CFDs.
CHESS is an integrated clearing and settlement system for ASX-listed equity securities at the client account level. The system provides clearing, settlement, depository and registry services through a secure environment for transactions that occur on the Australian equity market.
Derivatives Clearing System (DCS) is the integrated clearing system used for clearing derivatives traded on ASX Trade, while SECUR provides clearing processing for derivatives trades generated on ASK Trade24.
DCS is made up of two components: Central Clearing Component (CCC) and Member Clearing Module (MCM). CCC is operated by ASX and maintains clearing information for each participant, including open positions, margin information, accrued interest and more. MCM is provided to participants by ASX to assist the participant with managing their clearing operations.