Australian Securities Exchange hooks up to NYSE Technologies SFTI
The Australian Securities Exchange has connected to NYSE Technologies’ secure financial transaction infrastructure network, creating a new link between the Australian market and the outside world.
Australia’s futures market will be connected first, followed by ASX equities in the coming months. The link consists of both market data and connectivity for trading. ASX and NYSE Technologies have also stated that they will explore addition benefits.
“By pairing our networks, ASX and NYSE Technologies will provide our respective customers with improved connectivity and greater access to venues and financial data centres,” said David Raper, general manager for trading services at ASX. “Clients at the ASX Australian liquidity centre will be able to benefit from enhanced offshore access. It will also make ASX more accessible to our international customers wanting to trade both ASX24 and ASX Trade markets.”
ASX is currently in competition with alternative trading system Chi-X Australia for market share in the country’s equity markets. Formerly a monopoly, the exchange has enacted sweeping changes, including the introduction of a dark order book, facilities for high-frequency traders, and upgrades to its matching engine, in response to the competition.
Last month, Australia’s Securities and Investments Commission set out a series of final rules on dark liquidity and high-frequency trading that it says will create a more stable market.
Under the rules, operators of crossing networks must publish information about their systems on a website, and disclose to clients how the system operates. They must identify the crossing system in trade information for wholesale clients and whether they traded as principal. In addition, tick sizes in crossing networks must be the same as in lit markets, and crossing networks cannot discriminate between users.