The Australian Stock Exchange is the most prominent stock exchange of Australia. The Australian Stock Exchange was renamed as the Australian Securities Exchange from December 5, 2005.
Evolution of the Australian Stock Exchange
- The Australian Options Market was established in 1976 specialized in trading call options.
- The Australian Stock Exchange Indices substituted the Melbourne and Sydney Stock Exchange Indices in 1980.
- The broker commission rates were deregulated in 1984.
- The warrant market was established in 1990.
- Fixed interest securities began in 1993.
- The Australian Stock Exchange finally merged with the Sydney Futures Exchange in 2006.
Stocks traded, market indices and the major listed companies under the Australian Stock Exchange
The major stocks traded in terms of their market capitalization are BHP Billiton, Commonwealth Bank of Australia, Telstra Corporation, National Australian Bank, Australia and New Zealand Banking Group.
The most important index that is used in the Australian Stock Exchange is the S&P/ASX 200 which is an index made up of the top 200 shares. This substituted the All Ordinaries Index.
The listed companies under the Australian Stock Exchange are not regulated by them but by the Australian Investments and Securities Commission.
Trading takes place by the integrated trading system also known as the Click-XT system. There are two types of orders that are accepted, one is the market order required to buy or sell at the market and the second is the Limit order.
Short selling of shares us permitted but is restricted to the designated stocks.
The market maker has a choice between a set of 18 options or an option that expires in nine months. Low exercise price option is also available.
The interest rate market in the Australian Stock Exchange consists of corporate bonds, floating rate notes and bond-like preference shares.
The futures that are traded in the Australian Stock Exchange include the ASX 50, ASX 200 and the ASX property indices.