May 2008 was a month of lower activity levels across equities (by value) and derivatives markets compared to the previous corresponding period (pcp) on the Australian Securities Exchange (ASX), despite overall cash market trading volumes continuing to increase.
Throughout the month ASX systems – including trading, clearing and settlement, and company announcements – operated normally.
Cash markets (including equities, interest rates and warrants trades):- Total cash markets trades for May 2008 were a record 9.2 million, up 59% on the pcp. Average daily trades of 418,053 were 67% up on pcp.
- Total cash market traded value was $130.1 billion in May 2008, down 12% on pcp, with a daily average value of $5.9 billion, down 8% on pcp but up 9% on April 2008. On a financial year-to-date basis total value traded is 26% up on pcp.
- In May 2008 the average value per trade fell to $14,150 ($25,632 pcp) and the percentage of value crossed fell to 26% (33% pcp).
- Equity derivatives volume (excluding SPI 200) for May 2008 was 1.7 million contracts, down 30% on pcp, with a daily average of 77,008 contracts, down 27% on pcp.
- Total futures and options on futures contracts volume (excluding equity derivatives and CFDs) for May 2008 was 5.5 million, down 17% on the pcp, with a notional value of $2.8 trillion. Average daily contracts volume during May 2008 of 247,960 was down 13% on the pcp.
- A total of 6,776 ASX CFD trades were transacted in May 2008 comprising a volume of 7.3 million contracts. The total notional value of all CFD trades for May was $201.4 million, and the value of CFD open interest at the end of May was $59.9 million.
- In May 2008 there were 9 entities admitted for listing, compared to 29 in the pcp. Total listed entities at 31 May 2008 were 2,2231 up 8% on the 2,059 for the pcp.
- Total capital raised in May 2008 amounted to $2.8 billion, down 64% on the pcp. Capital raisings financial year-to-date comprise initial raisings of $11.0 billion, down 39% on pcp, and secondary raisings of $45.7 billion, down 12% on pcp.
1 Entities include companies and trusts with quoted equities (including individual entities that trade as stapled securities) and also other entities with debt securities only.
Supervisory monitoring and enforcement activity:
In May 2008, there were:- 10,197 company announcements processed, down 2% on pcp;
- 66 price queries issued to listed entities, down 13% on pcp; and
- 126 trading halts granted, down 5% on pcp.
Fees and activity rebates:
ASX is today also announcing its fees and rebate scheme metrics for FY09. Effective 1 July 2008, the following arrangements will apply:
- The cash market large participant rebate scheme (LPR) revenue growth threshold for FY09 will be 10% (down from 12.5% in FY08) - ie rebates will grow at a rate that disproportionately favours participants when gross cash market revenue increases 10% over FY08.
- The derivatives market large volume rebate scheme (LVR) volume growth threshold for FY09 will be 8% (consistent with FY08) - ie rebates will grow at a rate that disproportionately favours participants when volumes increase 8% over FY08.
- The 75:25 gain-share principle in favour of participants will continue to apply to both the LPR and LVR schemes.
- The thresholds applicable to initial listing fees will increase. Thresholds applicable to secondary capital raisings above $10 million will increase for the first time in two decades. Thresholds refer to the value of the securities being listed. There are no changes to the annual listing fee schedule. The new fee schedules are available on asx.com.au.
The above changes take into account the value proposition offered by ASX and the continuing objective of sharing trade execution growth with large users of ASX’s services. ASX will continue to monitor its overall service offering throughout FY09 and will notify the market of any material changes.
A detailed activity statement for ASX group markets for May 2008 is attached.
