Operating revenue (excluding interest and dividend income) for the three months to 30 September 2002 was $53.3 million, compared with $50.7 million for the corresponding quarter in 2001, an increase of 5.1%. This revenue growth was driven by continued strong volume increases from the options business, together with a sound performance across other businesses. Ongoing cost management has contained expenses across all categories.
Daily average equity trades were 51,839 compared with 54,445 during the corresponding quarter last year, which included the surge in trading activity following the September 11 attacks. The average revenue per equities trade for the three months was $5.84, reflecting the increased average value per equities trade, which has reached its highest-ever level during the quarter (in excess of $40,000).
Daily average option contracts were 67,905 compared with 55,372 for the corresponding quarter, an increase of 23%. In revenue terms, this increased activity has effectively offset the decline in the number of equities trades during the quarter. The average fee per options contract was $1.58 compared with $1.61 for the corresponding quarter last year, reflecting the increased activity (and therefore liquidity) delivered by market makers who receive a discounted fee per contract. The number of new warrants issued during the three-month period was 346 compared with 527 for the corresponding period, and the total number of warrants series listed at 30 September 2002 was 1,278 compared with 1,078 at 30 September 2001. The daily average number of warrants trades was steady at 1,884 compared with 1,909 for the corresponding period last year.
Initiatives
During the period ASX launched a listed property trust futures contract based on the S&P/ASX200 Listed Property Trust (GICS) index. The contract is believed to be the first of its kind in the world, and recognises the importance of the Australian listed property sector, capitalised at more than $40 billion. The Australian listed property sector is arguably one of the most developed in the world and this new contract provides an effective risk management instrument.
ASX has this week commenced trading in electricity futures contracts, which further enhances the range of products offered through our existing infrastructure.
ASX FundConnect is progressing, with the system design underway. During the quarter, ASX entered into a Heads of Agreement with unit registry software provider InfoComp to pursue system connectivity and work towards straight-through-processing capability in unlisted managed funds.
ASX entered into a Memorandum of Understanding (MOU) with Shanghai Stock Exchange, with the intention of developing closer ties between the two exchanges, and facilitating regular interaction between executives and staff of both exchanges.
Outlook
The principal driver of ASX™s revenue remains transaction volumes across equities and derivatives. Given the unpredictable nature of volumes in the short term, ASX will not explicitly forecast trading volumes or the resulting revenue. Instead, ASX aims to ensure transparency of these key business drivers by disclosing trading volumes on a daily basis through the ASX website.
QUARTERLY UNAUDITED RESULTS SUMMARY
ACTUAL 3 MONTHS ACTUAL 3 MONTHS
TO 30 SEP 2002 TO 30 SEP 2001
Operating revenue excluding
interest ($m) 53.3 50.7
Operating profit after tax and
equity accounts ($m) - unaudited 15.8 13.2
Number of new listings(1) 26 24
Number of listed entities 1,499 1,491
Equities trading, clearing and
settlement(2)
- trades ('000) 3,421 3,536
- average trades per day ('000) 51.8 54.4
- average fee per trade(3) $5.84 $5.43
Warrant trading
- average trades per day ('000) 1.9 1.9
Options trading, clearing and
settlement(2)
- contracts traded ('000) 4,481 3,599
- average contracts per day ('000) 67.9 55.3
- average fee per contract $1.58 $1.61
Warrants:
- Number of new warrant series 346 527 - Total warrant series 1,278 1,078
1. Includes fixed interest issuers
2. Excludes warrant trades
3. Based on aggregate fees paid by brokers, non-broker participants,
and issuers
Daily volumes for equities trades, options contracts and warrant
trades are available on ASX's website www.asx.com.au.
