Speaking at the ASX profit announcement, ASX chief executive Elmer Funke Kupper said the listings and issuer services business was the largest contributor to growth, generating an additional $15.2 million in revenue growth.
Mr Kupper said revenue for this business increased by almost 11 per cent from $139.7 million at the end of the 2013 financial year up to $154.9 million on the back of a very strong IPO market.
“ASX admitted 107 new listings for the year, averaging around two per week,” he said.
“The total amount of IPO and secondary capital raised was $66 billion, up 42.3 per cent.”
Mr Kupper said revenue increased across all the major business lines.
Capital expenditure was $43.2 million for the 2014 financial year, with more than half invested in ASX’s post-trade services.
Mr Kupper said that in the past two years the ASX has invested a total of $49 million in its financial market infrastructure.
“The new services that flow from this investment put the company in a good position to compete with other major financial centres,” said Mr Kupper.
The way financial markets operate around the world is undergoing significant change, driven by new global regulations that affect all participants in the industry including investors, intermediaries and exchanges, he added.
“The regulations impact on the economies and business models of the banking sector and put higher requirements on exchanges, and increase global competition between financial markets,” he said.
“At the same time, they create new business opportunities for exchanges as regulators reduce the risk contained in the interbank (OTC) market by requiring transactions to be cleared on a central exchange platform.”
The ASX is well placed to succeed in a more global and competitive industry, according to Mr Kupper.
He said the company’s strategies for the future include further developing its financial infrastructure and advocating regulatory settings that support investors and develop growth in Australia’s financial markets.
