The Australian Securities Exchange trading centre (ASX) is one of the 10 largest global securities exchanges by market capitalisation. This guide will outline the S&P/ASX indices, listing rules, the role of the Australian Securities Exchange, top ranked companies by code, corporate governance council guidelines, and upcoming 2021 public holidays. We have also compiled a list of our recommended brokers for Australian Securities Exchange trading below.
Australia Securities Exchange Brokers
What Is The Australian Securities Exchange?
The Australian Securities Exchange trading centre (ASX), originally the Australian Stock Exchange, is one of the top 10 global securities exchanges by value with a total market capitalisation of around $2 trillion. Based in Sydney, it was the first major financial market open every day. Today, the exchange is the largest market for interest rate derivatives in Asia and is among the top 5 globally recognised exchanges for raising capital.
The Australian Stock Exchange was founded on 1st April 1987, after the government passed legislation to combine six independent stock exchanges. Although the combined exchange is relatively new, some of the state-based original exchanges dated as far back as the 1800s, including the Sydney Stock Exchange, which was established in 1871. This stock exchange was in fact home to the first computer installed within an Australian exchange, used to streamline clearinghouse functionality and broker-client accounting services.
The Australian Stock Exchange and the Sydney Future Exchange merged in 2006. This merger expanded ASX’s asset range to include energy and agricultural commodities, index options and interest rate securities. As a result, the company was renamed to Australian Securities Exchange to reflect this new diversity of investment and financial products available. The holding company today is also known as the ASX Group.
In 2012, the Australian Liquidity Centre (ALC) was launched, a state-of-the-art data hub supporting the Australian Securities Exchange trading execution and post-trade platforms. In 2013, the exchange expanded to offer global network connectivity via ASX Net Global. Recent activities highlight continuous innovative functionality aiming to enhance the features of the exchange. This includes new trading platform integration, post-trade solutions for equity market trading and the introduction of mFund, permitting investors to hold, buy and sell units in unlisted funds.
Australian Stock Exchange Vs Australian Securities Exchange
Although still used interchangeably, it should be noted that the stock exchange in Australia is officially called the Australian Securities Exchange (definition ASX, mic code XASX). The Australian Stock Exchange and the Futures Exchange of Sydney merged in 2006 and were renamed under the securities title. Members can trade on the two trading platforms offered by ASX; ASX Trade and ASX Trade24. We cover these in more detail below.
What Is The Australian Securities Exchange Used For?
The purpose of the Australian Securities Exchange trading centre is vast. It offers listings and trading, has a clearing role, is a market operator and acts as a payments facilitator. Functions also span educational resources for retail investors via the ASX education centre. It also implements and oversees regulator guidance with its operating rules and promotes standards of corporate governance in the market. According to its website, the company is structured around four divisions; listings, markets, technology & data and securities & payments.
As many significant national companies are listed on the Australian Securities Exchange trading markets, it can also indicate a gauge of economic health or act as a reflection of the impacts of major events. The Australian stock exchange is well known for being used as a trading platform by individuals across the globe to attempt to make a profit from stock price fluctuations. Traders can invest in a listed corporation’s stocks, ‘short selling’ or ‘going long’ depending on market sentiment trends. The ASX securities live asset list is comprehensive and enables retail investors trading platform access to options trading, equities, futures, commodities, mutual traded funds and more.
How Australian Securities Exchange Trading Works
There are several listing requirements that companies must adhere to before being considered to list as members on the exchange. The rules serve the interests of both listed entities and investors, ensuring international competitiveness and facilitation of efficient capital raising. The trading application is comprehensive and approval is granted by the provisions of the Corporations Act. The Australian stock exchanges trading rules list includes:
- Financial statements should be produced in accordance with adequate auditing standards
- Corporations must disclose information about corporate governance practises allow security holders the opportunity to express their views openly to the board and management members
- Timely disclosure of information that may have a material effect on the price or value of an entities securities
As with all stock exchanges, the Australian stock exchange strictly prohibits insider trading.
ASX Trading Systems
There are two Australian Securities Exchange trading platforms available to intraday investors, ASX Trade and ASX Trade24.
Used for the trading of equity securities. This platform is based on the NASDAQ OMX system. It is recognised as one of the fastest platforms in the world.
Used for the trading of derivative securities. This platform is globally distributed with gateways in New York, London and Sydney and offers 24-hour trading by maintaining two active trading days.
The Australian Securities Exchange trading centre is due to launch a blockchain settlement system in 2023. The current ledger system (DLT) CHESS is due to be replaced with distributed technology developed by Digital Asset. The post-trade platform for the cash equity market using DLT (commonly referred to as a blockchain) has, however, been halted due to significant increases in trading volumes since the COVID-19 global pandemic.
Stock market indices operate to depict the condition of the market and support investors in identifying trading patterns and economic health. The S&P/ASX 200 is Australia’s leading share market index and comprises the top 200 companies listed on the Australian Securities Exchange by market capitalisation.
Significant listed companies by revenue include Australia and New Zealand Banking Group Ltd (ANZ), Qantas Airways Ltd, Virgin Australia Holdings Limited (VAH), Goodman Group, Vanguard Australian Shares Index Exchange Traded Managed Fund (VAS) and gold mining companies like Newcrest Mining Limited. Use the company search function on the ASX website for full listing details. The index is maintained by Standard & Poor’s and is considered the benchmark for the Australian Securities Exchange trading equity performance.
The components of the index are selected by the S&P committee based on the below criteria:
- Daily Market Cap – minimum benchmark sizes apply and the previous 6 months must be considered institutionally investable
- Liquidity – public float trading volume (shares not owned by employees, directors, government agencies, etc) must meet a minimum requirement
- Listing – only stocks listed on the Australian stock exchange can be considered for inclusion and must be an ordinary or preferred equity stock (e.g. no warrants or bonds)
The index was launched in 2000 and is rebalanced every quarter to ensure the included stocks meet the eligibility requirements. As of June 2021, the top 10 companies listed accounted for almost 50% of the index market cap revenue.
How To Start Day Trading On Australian Securities Exchange
Once you are ready to begin investing in Australian Securities Exchange trading markets, there are a few considerations to remember.
Choose A Broker
Brokers will act as an intermediary platform for you to access the Australian Securities Exchange trading centre. Choosing the right online trading platform to meet your investment goals is very important. This could include competitive and transparent commission structure and fees, easy to navigate terminal interface or integrated educational resources. When comparing ASX brokers, consider the tools and trading software that are offered as these will make a big difference to your success and overall experience. These could include stock exchange historical share price performance, customisable graphs and charts and an integrated trading calendar.
Regulation is also an important factor when choosing a broker, ensuring you are well protected from scams and have access to compensation schemes. The Australian Securities and Exchange Commission (ASIC) regulates registered providers of financial services organisations and aims to promote informed participation from investors, creating an environment of transparency and integrity. Look out for the ASIC logo when choosing the best broker for you.
A full guide to comparing and selecting among brokers can be found here.
The Australian Securities Exchange trading centre has been used for stock trading around long before investment in blockchain, futures and options, though that doesn’t make it straightforward. It is worth considering a day trading strategy to turn a profit. The best strategies analyse historical stock price data to help predict future price movements. This is often done through charts, graphs and price movement patterns. For more information, visit our trading strategies page.
Choose A Stock
Not all company shares are made equal. Volatility, liquidity and trading volume vary from stock to stock and can make a big difference to your potential profits or losses. Review what sort of asset your strategy works best on and find the combination of those attributes that best suits you.
Use Pre-Market Movers
The Australian stock exchange offers a long pre-market trading session, starting at 07:00 AEST. Intraday traders can use this time to scan stocks ahead of the main session opening. Consider what happened yesterday to indicate patterns or potential problems for today. You could look at substantial volume changes, the broader value of the futures market or average volumes across the last month. It can be best to trade in the direction of the market, though there is the occasional breakout against the market.
The Australian Securities Exchange trading sessions operate Monday to Friday for a total of 6 hours. Typical main and extended trading session hours are:
- 07:00 to 10:00 AEST – Pre-opening session
- 10:00 to 16:00 AEST – Main trading session
- 16:12 to 18:50 AEST- After-hours trading
Note that the Australian Eastern Standard Time Zone is GMT + 10, varying with Day Saving Time (DST).
These trading hours are not necessarily followed by all financial asset classes. Check the ASX website for the latest schedules.
Extended trading hours are available for electronic transactions only. Australian Securities Exchange trading is not open on Saturdays or Sundays but there is no lunch break during the week. Keep an eye on public holidays, as the stock exchange will not be available for trading during these hours. Many brokers will integrate a holiday trading calendar into personal account portals, including Christmas closures and others upcoming in 2021.
For general enquires, the Australian stock exchange offers several contact options, including:
- Phone number – 131 ASX (131 279) or 02 8973 3625
- Address – Customer Service, Exchange Centre, 20 Bridge St, Sydney, NSW 2000
There are more than 2,000 companies listed on the Australian Securities Exchange trading centre and the full market listing represents several diverse categories. Four out of the top 10 organisations are the country’s largest banks. The top 10 largest listed companies by market cap are:
- Commonwealth Bank – the largest bank and company in the country in terms of assets and market cap
- BHP Group Limited – one of the world’s largest resources organisations, among the top producers of iron ore, coal and copper
- CSL Limited – a large pharmaceutical company operating in 2 segments: CSL Behring and Sequires
- WestPac Banking Corp – Australia’s first bank offering banking and financial services internationally
- National Australia Bank – the country’s third-largest bank and largest business bank
- ANZ Banking Group Limited – fourth-largest bank in the country operating in 33 countries globally
- Fortescue Metals Group Ltd – engages in the exploration, development and production of iron ore, copper and gold in Australia and worldwide
- Wesfarmers Limited – a recognised retailer with operations including home improvements and outdoor living merchandise
- Macquarie Group Limited – diversified financial services company providing clients with asset management and capital solutions listed on the Australian Securities Exchange in 2007
- Resmed Inc – develops, manufactures and distributes medical devices and software
There are many ways to increase the potential of your day trading strategy. Our top tips for the Australian Securities Exchange trading include:
Keeping up to date with the latest national and international news events is essential. This will support you in anticipating significant market movers during your ASX trading session. Australian stock exchange information can also be found on Yahoo finance or Wiki. It was reported in 2020 that the exchange surged after GME Resources Limited was mistaken for cult US GameStop stock, which just proves that keeping an eye on current news stories can help you jump on or steer away from those trends being reported!
It is also worth keeping abreast of events happening within the Australian Securities Exchange trading company list. A quick ASX entity search may prevent your trades from being significantly impacted by those events or filings that cause major volatility. LinkedIn may be a good place to start and may also direct investors to annual report publications.
Historical price data and information will also be published across a variety of sources. This could include live prices and quotes, predicted trading volume and upcoming floats. These could help you understand previous market gainers and fallers. Significant events that have impacted Australian Securities Exchange trading include the US election and COVID-19 causing the shortest-ever bear market in 2020.
Keeping a journal may not seem the most functional of top tips but it can help with understanding your recent Australian Stock Exchange trading performance. We would recommend inputting journal notes on price quotes with the market value at purchase, entry and exit positions, the reason for the trade and the purchase and sell dates. It doesn’t have to be an extensive task requiring constant updates but should help highlight reasons for mistakes and allow you to improve your strategy going forward.
Accessing comprehensive resources is important whether you are a new or experienced trader of the Australian stock exchange. This could include understanding market cap, top 100 and 200 index listings and YTD valuation by share values. Some brokers will integrate this content into their service offering and update information regularly.
You may wish to view YouTube content, access peer-to-peer platforms or use books and internet resources. Webinars or live events are a good way to meet like-minded intraday traders. These events are often run by experts in the field and can set you up with useful ASX tutorial demonstrations, understanding the best Australian Securities Exchange trading hours and live trading examples.
The best Australian stock exchange brokers in the market will offer a demo trading terminal via their website. A simulated trading experience is a great way to explore investing strategies on the stock exchange without having to pay market data fees or deposits. Up your skills with the ASX’s virtual share market game to practise trading as an individual or within a group.
Final Word On Australian Securities Exchange Trading
The Australian Securities Exchange (ASX) offers plenty of intraday trading opportunities. With some of the largest corporations in the country listed on the exchange, the indices and markets offer openings to profit from the price fluctuations of different companies as well as changes in the economic performance of the country as a whole. If you wish to begin Australian Securities Exchange trading, follow the advice above and check out our list of the top ASX brokers.
Is The Australian Stock Exchange Trading Today?
The Australian Securities Exchange trading days are Monday to Friday, with the main session operating between 10:00 and 16:00 AEST (GMT+10). The exchange closes during public holidays and sometimes instigates trading halts.
What Does The Australian Securities Exchange Trading Centre Do?
The exchange is structured around four divisions; listings, markets, technology & data and securities & payments. Functions also span the provision of educational resources for retail investors, implementation and oversight of regulatory guidance with its operating rules and the promotion of the standards of corporate governance in the market.
What Is The Australian Securities Exchange Corporate Governance Principles And Recommendations (2019)?
The Corporate Governance Principles and Recommendations is a set 8 of practices. Listed companies on the ASX should adhere to these to meet the reasonable expectations of the majority of investors. The principles highlight the Australian Securities Exchange investor relations guidance meaning corporations must act lawfully, ethically and responsibly.
When Is The Australian Stock Exchange Main Trading Time In Perth?
The Australian stock exchange operates its main trading session between 10:00 and 16:00 Sydney time, Perth +2 hours.
What Is The Main Role Of The Australian Securities Exchange?
The underlying rationale of the Australian Securities Exchange trading centre is to offer integrated exchange listings, trading, clearing, settlement, data and technical and information services.