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ASX Group offers primary market and trading services through the Australian Securities Exchange, clearing through ASX Clearing Corporation and settlement and depository services through ASX Setttlement Corporation.
ASX Group recognises that its ability to achieve its commercial and operating goals is dependent upon the value its services deliver to customers. This section describes those services.
Underpinning ASX Group's long-term success as a market operator and provider of clearing and settlement services is its ability to reliably and fairly provide high-quality, high-performance systems and processes.
ASX Compliance oversees ASX Group's obligations as a market operator and clearing and settlement facility operator. This section contains all rules, notes and waivers pertaining to markets operated by ASX Group.
A searchable repository of documentation, speeches and announcements relevant to ASX shareholders, market participants, the media, and the general public.Debt issuers
ASX Group utilises its trading and settlement mechanisms to provide an efficient and transparent interest rate securities market. Organisations choosing to raise debt finance through the ASX Interest Rate Securities (IRS) Market can take advantage of the following features:
Diversified Sources of Funding
Funding diversity is almost as critical as the interest cost of debt raised. Issuing debt on the ASX IRS Market diversifies an organisation’s funding exposure away from bank lending and/or offshore wholesale markets, providing access to a large pool of retail investors.
Reduced Prospectus Requirements
With technological advances and changes to prospectus requirements, many of the previous costs associated with a debt raising have been significantly reduced.
In May 2010, ASIC provided issuers of vanilla corporate bonds with certain exemptions from many of the more onerous prospectus requirements. For more information on ASIC exemptions visit: http://www.asx.com.au/debtlisting
Liquidity and Term Flexibility
Debt securities quoted for trading on ASX are accessible to all investors, which can greatly increase the potential market for an issuer’s securities.
Having alternatives to more traditional funding sources provides greater flexibility for organisations to match their borrowing requirements with investor demand.
Investors Seeking Longer Term Debt
Many retail investors have a longer investment horizon than that offered by bank term deposits. With an aging population and expanding pool of self-managed superannuation portfolios, the demand from investors for attractive long-term interest rate securities is expected to grow.
Settlement Efficiency and Risk Mitigation
Debt issuers can mitigate operational and settlement risk by taking advantage of ASX's efficient and cost effective trading and settlement system.
This includes CHESS and the Austraclear System, which settles trades conducted in the over-the-counter debt market, which enables simple and efficient settlement of coupons, redemptions and maturities through a single payment per corporate action.
Beneficial Ownership Tracking
ASX can provide insight into the trading dynamics behind a company's securities. Exposing market demand for an issuer's stock can provide insight into potential markets for new issues and the pricing of those issues.
Additionally, access to information on security holders and their holdings provides greater transparency of an issuer's investor base.