The Australian Securities Exchange (ASX) projects the completion of its post trade clearing upgrades by mid-2014.
Seventy percent of the ASX’s A$18 million capital expenditure in the first half of 2014 will be committed to post-trade services. In July 2013, ASX carried out an A$553 million capital raising, with most of that money being allocated to its equities and derivatives clearing houses.
Before July 2014, ASX expects to deliver OTC clearing, encompassing both dealer-to-dealer and client clearing, client clearing for futures, improvements to margin simulation and optimisation as well as developing the ASX collateral service, which is intended to reduce collateral costs for ASX clients.
ASX has already launched the first phase of the new collateral management service, allowing customers to use fixed income securities held in Austraclear as collateral for financial market transactions. Twelve foundation customers are working with ASX on the service, seven of whom have already completed their first trades. Future phases, such as clearing house electronic sub register system (CHESS) connectivity and international linkages are yet to be determined.
ASX also reported that trading for the six weeks before 7 February 2014 reflected seasonally subdued activity levels. The total cash market average value (for all lit and dark venues) per day was $4.2 billion, up 0.9% on the previous calendar period. ASX 24 derivatives daily average volume increased 21.3%.