Global Markets and Exchanges: Recent Trends

Transcription

1 Global Markets and s: Recent Trends Michael Shepherd, National President, Finsia, and Vice-Chairman, ASX 25 September 26

2 teryear s Business

3 Chalkies and Open Outcry

4 Growing Levels of Global Capital US$Tn International Portfolio Investment Debt Equities Source: IMF

5 Continued Securities Market Expansion Global Securities Markets US$Bn Global Securities Markets % Of World GDP Debt Equity Source: BIS; WFE; ASX; IMF

6 Securities Markets Exceed GDP 35 3 Sources: IMF, BIS, WFE, ASX Securities Markets % Of GDP Australia US UK

7 Market Liquidity has Generally Increased 12 1 Source: WFE Liquidity, Domestic Companies, % ASX NYSE TSX LSE SGX HKEx Note: Data not directly comparable because of differences in methodology.

8 MSCI World Index Weightings %, 3 June USA JAPAN UNITED KINGDOM FRANCE CANADA GERMANY SWITZERLAND AUSTRALIA SPAIN ITALY NETHERLANDS SWEDEN HONG KONG FINLAND BELGIUM NORWAY SINGAPORE IRELAND DENMARK GREECE AUSTRIA PORTUGAL NEW ZEALAND Australia s MSCI Market Weight USA is 49.5% Australia is ranked 8th, with weight of 2.47% Produced with permission of MSCI

9 Staying Attractive to Global Capital Australian Equity Ownership by Investors, % of Total Retail Domes tic Ins titutions International Institutions 25% 4% 35% Dec-95 Dec- Dec-5 Source: Australian Bureau of Statistics

10 Growth in Australian Share Ownership 45 Levels of Total Retail Share Ownership in Comparison with All Ordinaries Index % 15% 2% 52% 52% 5% 5% 54% 4% 4% 34% 34% 55% 51% Jan-8 5 Jan-8 6 Jan-8 7 Jan-8 8 Jan-8 9 Jan-9 Jan-9 1 Jan-9 2 Jan-9 3 Jan-9 4 Jan-9 5 Jan-9 6 Jan-9 7 Jan-9 8 Jan-9 9 Jan- Jan- 1 Jan- 2 Jan- 3 Jan- 4 Jan- 5 Closing I ndex Value

11 Share Ownership Breakdown 6% 55% 5% 4% Direct Share Ownership = 44% 3% % 2% 23% 21% 1% % Total Share Ownership Direct Share Ownership Only Both Direct and Indirect 11% 8.m 3.4m 3.1m 1.6m Indirect Share Ownership Only Base: All Australian adults aged 18 years + ( n=2,42)

12 Rapid Growth in Derivatives Turnover Futures Turnover on Organised s Notional Value, US$Bn, Qurtly Options Turnover on Organised s Notional Value, US$Bn, Qurtly Interest Rate, LHS Interest Rate, LHS Equity Index, RHS Mar-93 Mar-95 Mar-97 Mar-99 Mar-1 Mar-3 Mar Equity Index, RHS Mar-93 Mar-95 Mar-97 Mar-99 Mar-1 Mar-3 Mar Source: BIS

13 SFE Trading Volume Growth SFE Trading Volume Growth Total contracts (millions)_ Compound annual growth rate = 2% % Source: SFE

14 Today s Environment Demutualised Listed Trading System ASX (1998) BME Spain s (formed 22) + Floor Borsa Italiana (1997) No Deutsche Borse (formed 1993, listed 21) + Floor Euronext (formed 2) HK s (2) (incl Trading Hall) LSE (2) Nasdaq (21) NYSE (26) Hybrid + OMX (1993) Singapore (1999) Swiss No (owned by an Association) No Tokyo (21) No TSX (Toronto) (2)

15 International Consolidations Paris Bourse HEX (Helsinki) Pacific Archipelago/ REDIBook New York Instinet/ Island NASDAQ Amsterdam Brussels LIFFE BVLP (Portuguese ) OM (holm) Copenhagen Tallinn Riga Vilnius of Hong Kong Hong Kong Futures of Singapore Singapore International Monetary New York 26 NASDAQ 25 Euronext -LIFFE 22 OMX (Nordic & Baltic s) 1998 Hong Kong s & Clearing 2 Singapore 1999

16 Factors Driving Consolidations Technology back-office synergies, keep technology costs in check; Customer demands - one-stop shop with a broad suite of products and services; Innovation - improved platform for product development and revenue growth; Efficiency gains - streamlined compliance, single frontline regulation, integrated trading, clearing and settlement; Scale operational and financial, better positioned to capture global capital flows.

17 SFE ASX Group Better Positioned Globally Top-1 Listed Global Group Market capitalisation (A$ billion)_ Deutsche Börse CME NYSE Euronext HKEx CBOT LSE NASDAQ ASX + SFE ICE TSX SGX ASX OMX ISE Note: As at March 26 merger announcement. Source: Datastream; IRESS

18 What does the future hold? Tomorrow s trends? Mega or micro exchanges Vertical integration Regulation I ll tell you next year.