The Tradetech Daily

ASX Centre Point

Asx Centre Point

Melissa CooperEmail: +612 9227 0178

ASX Centre Point is Australia’s largest and most liquid anonymous mid-point matching system, matching at the mid-point of the national best bid and offer. In October 2013, 6.5% of on-market turnover in Australian equities traded in ASX Centre Point. Around 60 ASX participants are currently active in ASX Centre Point. The average matching rate across all securities is typically between 10% and 20%. Average trade size is around AU$3,000 with a growing number of trades above block size.

Functionality and order types

ASX Centre Point supports limit orders and market orders. Orders are
matched in time priority subject to an optional minimum acceptable quantity.
Participants can elect to preference their own orders. The ASX Sweep order
integrates non-displayed liquidity in ASX Centre Point with displayed liquidity
in ASX TradeMatch – both aggressively and passively through dual posting.

Access and participation

ASX Centre Point is available to all ASX
participants and their customers and is supported by leading order management
system providers. Many ASX participants provide direct market access and access
via their algorithms.

Instruments traded

All Australian equities and interest rate
securities are available in ASX Centre Point. In October 2013, 600 securities
traded and liquidity was available in a further 1,138 securities.

Order protection

ASX Centre Point offers ping protection and market
quality controls that prevent anomalous execution prices and executions when
the reference price is of poor quality. The ASX Sweep order eliminates
signaling risk when executing in both ASX Centre Point and ASX TradeMatch.

Future developments

Forthcoming enhancements may include support for
other non-displayed execution prices, additional user controls and access
through OUCH.