Sydney Futures Exchange Announces New Structure As A Demutualised Corporation

The Sydney Futures Exchange (SFE) announced today details of its new corporate governance structure, including a new Board and proposed corporate (holding company) structure.

The announcement coincides with SFE's successful demutualisation and change from a 40-year-old mutual owned by Members into a shareholder corporation. The demutualisation took effect from Monday, 11 September 2000.

The new Board of Directors appointed to the demutualised Group comprises a Managing Director, four independent directors (including Chairman) and four participant representative directors. The new Board comprises: Mr Rick Holliday-Smith (Chairman), Mr Robert Elstone (Managing Director and CEO), Mr Ken Borda (CEO, Deutsche Bank Australia), Mr Mark Johnson (Executive Director, Macquarie Bank), Mr Ian Payne (independent company director), Mr Philip Stern (Director, Port Jackson Partners), Mr Peter St George (Joint CEO, Salomon Smith Barney Australia), Mr Peter Warne (independent company director) and Mr William Wilson (Managing Director, Futures, Merrill Lynch Australia).

The new Board will have four subcommittees devoted to Audit, Finance, Human Resources and Technology. An advisory board comprised of former SFE directors and chaired by CEO, Mr Robert Elstone, will also be established to assist the main Board with issues affecting SFE's trading and execution business. The Board of the Sydney Futures Exchange Clearing House (SFECH), currently a wholly owned SFE subsidiary, will remain unchanged.

SFE also intends to establish a new holding company that will own SFE and SFECH. Corporate (holding company) services will be provided to both the trading (SFE) and clearing (SFECH) arms of the Group. The new structure is expected to be implemented in the first half of 2001.

SFE's four classes of Members voted overwhelmingly in favour of demutualising SFE at Scheme meetings on 22 July this year. The trading of SFE shares on an exempt market conducted by Austock Management will commence once final regulatory approvals are obtained.

Every effort is being made to expedite these approvals and the market will be informed of material developments. On the basis of current information, the exempt market may not commence before the end of September 2000.