The Australian Securities Exchange (ASX) has reported an operating revenue of A$764.1m (US$603.4), up 2.4%, and a net profit after tax of A$434.1m (+1.9%) for the full financial year 2017 to June 30, 2017. The increase was due to higher activity levels in derivatives and OTC markets, trading services and equity post-trade services, according to the exchange.
'ASX has built on its strong first half results with a solid performance for the full 2017 financial year,' said Dominic Stevens (pictured), managing director and chief executive officer at ASX, in a statement. Revenue from listings was flat on the year. Despite a lower amount of capital raised (-28.8%), there were far more new listings over the financial year, rising from 124 to 152, the most in six years and including many foreign and technology company listings, according to the exchange.
Thirty-eight exchange-traded products (ETPs) were listed over the year, down from 47 in the previous financial year, while the market value of ETPs increased by 23%, from A$22.5bn to A$29.5bn. Preparation for exchange-traded fund options and New Zealand dollar OTC clearing development are underway, according to ASX, while there was a continued rise in OTC clearing, with A$5.2trn was cleared, an increase of 88%.
The rise in net revenue was supported by an increase in the cash market and derivatives trading activity, due in part to 'ongoing global uncertainty and pockets of volatility,' according to Stevens. Revenue from derivatives and OTC activity was A$269.1m, an increase of 1.2% on the year. Income from futures and OTC, at A$197.4m, was up 1.6%, while revenue from equity options, at A$1.7m, was down 6.4% on the year. The exchange reported growth in weekly equity options, introduced in October 2016, with average daily volume of 21,240.
Operating expenses rose by 6% on the year, from A$170.6m to A$180.9m, due to higher investment in people and technology. The spending relates to continued infrastructure upgrades as well initiatives such as the new futures trading platform, development work associated with becoming the Australian Financial Markets Association Bank-Bill Reference Rate administrator.
Sixty-seven structured products have been distributed in Australia this year, down almost 90% compared to the same period last year, when 522 structured products were issued, according to SRP data. The sharp decrease was mainly due to a massive drop in the number of products distributed by Citi, from 32 products in the first half of 2016 to just eight products in the same period this year.
Net estimated sales for the first half of 2017 decreased by 50%, to A$366m (first half of 2016: A$732m), according to SRP data. UBS, with sales of A$231m between January 1 and June 30, 2017, was the most prolific provider by sales volume, with a 63% share of the market. Instreet came second with a market share of 17% (A$63m), followed by Sequoia Group (10%) and Citi (9%).
Click the link to view the ASX full-year 2017 results.
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