AUSTRALIAN STOCK EXCHANGE

AUSTRALIAN STOCK EXCHANGE

INTRODUCTION
Australian Securities Exchange (ASX) is the primary stock exchange in Australia. The ASX began as separate state based exchanges established as early as 1871. Now the exchange is a public company and listed on the exchange itself. The trading methodology is electronic. The initial name is AAUSTRALIAN STOCK EXCHANGE and changed its name as Australian Securities Exchange on 5th December 2006. It is known as ASX. The biggest stocks traded in terms of market capitalization on the ASX are BHP Billiton, Commonwealth Bank of Australia, Telstra Corporation, National Australia Bank and Australia and New Zealand Banking Group.

With respect to Index, the exchange formed S &P/ASX which is for top 200 shares in ASX. Another index called S&P/ASX 50 which for bigger stocks only.

The ASX regulates other listed companies which listed with the ASX and it is regulated by Australian Securities and Investments Commission which is called as ASIC The current Managing Director Robert Elstone appointed in July 2006. ASX and the Australian Securities and Investments Commission (ASIC) co regulate the ASX

The ASX provides a number of markets and makes the trading on Equities, Exchange Traded Options, Debt Securities Market, SFE Futures, ASX Futures, Listed managed Investments and Warrants

As on 30the March, 2007, 2014 stocks were listed on the ASX with the total market capitalization of A $1.39 trillion.

TRADING SYSTEM
Previously the trading is done through SEATS method. Now from 2nd October 2006, new system has been introduced called as Click-XT system which is called as Integrated Trading System i.e. ITS. The Integrated Trading System provides new opportunities for contingent trading and new order types can process more transactions per second. It also allows multi order transactions i.e. up to 5 orders per transaction. Trading time. Trading is week days from 10.00 am to 4.00 pm. The market opens alphabetically in single price auctions for first 10 minutes to prevent exact prediction of the first trades. In evening also same from 4.10 to and 4.12 pm.

INVESTORS VIEW
How to buy or sell in ASX
The investors should buy or sell orders through the ASX Integrated Trading System i.e. ITS. But the investors cannot deal directly with ASX. The investors should be routed through the licensed operators who are also called stock broking firms and the stock broking use the ITS terminals located in their offices. The ITS matches buying and selling requests by price in the order entered into the system. There is no disparity about small order or large order. Every order is processed on an equal basis and larger investors do not gain priority. So you in order to deal with the ASX first you should get stock broker who is licensed and using ITS terminal.

ORGANISATIONS VIEW
Listing is the process of taking a private owned organization into public owned organization whose shares can be traded on stock exchange. Suppose yours is an organization, then you can go for listing with ASX. During 2007, so far 155 organizations listed with ASX. The listing of the organization can be made within 3 months and some times it make take time even up to 2 years. Normally it takes 3 months to 6 months. After listing formalities made, your organization would be allotted ASX code which consists only 3 letters, thereafter your stocks will be notified in ASX