The new fee schedule recognises that volumes have grown strongly and that fees have not changed for more than 10 years. The new fees improve the sustainability of the derivatives business, encourage volume growth and position ASX to compete for liquidity in an evolving global market structure. The fee schedule and growth incentives reflect that customers use exchange-traded and OTC interest rate products together.
Derivatives are the largest contributor to ASX revenue, accounting for
ASX has made significant investments over the last two years to build a world-class financial market infrastructure for the Australian dollar market. The new services flowing from these investments include a clearing solution for OTC derivatives, a client clearing solution that gives important new protections to investors and a collateral management service that provides efficiencies to banks that operate in the Australian market. Each service deploys the best available technology and risk management solutions.
The implementation of a new fee schedule for interest rate futures signals the next phase in the development of ASX sDerivatives business. This phase involves continued investment in ASX s trading, clearing and risk management platforms, the launch of new products that more directly integrate the exchange-traded futures and OTC markets (a process known as futurisation ), and improved alignment between ASX and its clients through lower fees and higher growth incentives. ASX is receiving direct input from clients in its investment program through dedicated risk and product committees.
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