Last month’s official recognition of ADX as a futures exchange by the Federal government is certain to enhance Australia’s aspiration to become a global financial centre of excellence.
ADX managing director, Mr John Herron, said today that the strong market support received to date is a resounding indication of the solid prospects for the exchange. ADX has already 24 signed trading and five clearing participants, with both numbers of participants and trading volumes expected to increase over the coming months.
“Our product feedback has also been excellent with particularly strong interest in the MSCI Aussie Index and our five-year bond product, he said. “These initial products are the first in a suite of products to be launched over the coming year.”
Mr Herron emphasised the encouragement of - and the provision of different kinds of incentives to - trading participants such as electronic market makers is essential in the new exchange environment. ADX expects to add value to the domestic markets while also actively pursuing participation by offshore players.
The announcement of the commencement of discussions with the Singapore Exchange (SGX), to establish joint trading and clearing links, marked a significant milestone for ADX and Australia’s emergence in the global financial marketplace. It will place ADX’s products throughout the Asian region as well as offering the liquid contracts of SGX to Australian customers.
A key competitive advantage for ADX is its speed to market via efficient infrastructure and proven technology. To capitalise on this, ADX has announced the formation of an exciting technology joint venture with Paris-based Atos Euronext.
“A world-class team has built our exchange over recent months,” Mr Herron said. "Their tireless dedication and professionalism have been outstanding.”
