Stock Trading Revenue Topped by Technology at Australia Exchange

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Stock Trading Revenue Topped by Technology at Australia Exchange

August 16, 2012

Tom Steinert-Threlkeld

The Australian Securities Exchange Group said Thursday that its revenue from Technical Services in its 2012 fiscal year topped the amount of revenue it received from stock market trading.

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Revenue derived from “liquidity access,’’ hosting, application services, community services and connections reached $45.3 million, up 12.1 percent from the previous year.

Revenue from operating its stock market was down 7.0%, driven it said by a decline of 11.5% of the value of stocks traded at $1.2 trillion.

ASX data center.

The group counted $45.9 million of revenue from clearing, $42.2 million from settlement, but only $36.4 million from trading.

The growth in Technical Services revenue came as the company introduced different order types and execution services, and completed a state-of-the art data center.

That data center operates at high speed and handles high volumes of trading orders, from computers belonging to trading firms that are located inside its walls. ASX said it was hosting 59 clients in the new data center as of June 30. The company also reported operating 883 gateways or cross connects to the ASX or its ASX 24 service. There were another 125 connections to its ASX Net network.

Uptime on its various systems exceeded 99.75%, for the year.

Information Services revenue was $66.9 million, down 5.6%. The drop was “driven by the fall in equity market activity in the retail sector,’’ ASX said. Data usage by professional market participants was “broadly stable.’’