While revealing a series of successes in new data offerings
and technology upgrades, flat half-year results at the Australian Stock
Exchange (ASX) also expose disappointment in some of its new venue strategies.
Cash market revenue – consisting of trading, clearing and
settlement – was A$66.9 million (US$71.9 million) for the first six-month period of its 2012
trading year, up barely 0.2%. This was driven by a strong first quarter,
followed by a significant reduction in market activity in the second quarter.
Trading revenue of $19.6 million (US$21 million) was in line with last year,
despite a decline in traded value of 4.7% to A$643.9 billion (US$692.8 billion), off the back of
the launch of alternative venue Chi-X Australia.
While not expanding on the details, the bourse admitted
use of VolumeMatch – a block trading venue with a minimum order size of A$1
million – has been “unsuccessful”.
VolumeMatch is one leg of the ASX’s new multi-platform
strategy that also includes the introduction of PureMatch – a dedicated venue
for high-frequency trading with a latency of 300 microseconds and a capacity of
100,000 orders per second – and TradeMatch, a platform catering for the
bourse’s traditional customers.
In its H1 filings, the ASX said VolumeMatch’s design and distribution
model was now under review.
For PureMatch, currently undergoing a pilot programme, the
exchange said it was “too early to determine impact” but that “new low latency data
products [were] in delivery”.
ASX said CentrePoint – the bourse’s dark trading service – was
“gaining traction” and enhancements would be delivered by mid-year.
Revenue from the provision of trade execution and data
services was up 19.5% to A$22.6 million, including revenue from its new co-location
offering, its high capacity and low latency optical fibre network ASX Net, and
ASX Best – its multi-market trading application with a smart order router.
ASX opened the Australian Liquidity Centre, its new data and
co-location centre in February 2011 and expects the facility to be fully operational
by the end of April. Equities has already been launched and the bourse said it
would begin futures commencing later this month.