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FY2021 Annual Report · ASE

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ASX Limited
Annual Report 2021

ASX operates at the
heart of the globally
attractive, deep and
liquid Australian
financial markets

Contents
Who we are

Our vision and strategy

FY21 highlights

Chairman's letter

CEO's year in review

Operating and financial review

Sustainability

Corporate governance

Remuneration report

Directors' report

Auditor's independence declaration

Statutory report – consolidated financial
statements

Key financial ratios

Transaction levels and statistics

Shareholder information

Directory

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107

110

112

ASX will hold its Annual General
Meeting at 10am (Sydney time) on
Wednesday 29 September 2021.
Shareholders can participate online at
https://agmlive.link/ASX2021

Further details are available at
https://www.asx.com.au/agm

ASX Limited ABN 98 008 624 691

ABOUT ASX

Who we are

ASX is an integrated exchange offering listings, trading, clearing, settlement,
technical and information services, and other post-trade services.

We operate markets for a wide range of asset classes, including equities, fixed
income, commodities and energy. We are a top 10 global securities exchange by
value and the largest interest rate derivatives market in Asia.

Companies and other issuers of capital from Australia and around the world engage
with ASX to manage risk and raise capital to sustain and grow their businesses.

We operate liquid, transparent and reliable markets of integrity. The certainty
and security of our clearing and settlement activities help underpin the systemic
stability of the Australian economy.

ASX also provides data and technology services to intermediaries, banks,
information vendors and software developers to help them make informed
decisions, offer services to their clients and connect with one another.

ASX has a proud history as an early and successful adopter of new technology.
Today, we continue to embrace innovative solutions to make life easier for
customers, help companies grow, create value for shareholders and advance
the Australian economy.

Through the expertise, experience and passion of our people, ASX strives to be the
world's most respected financial marketplace, built on our trusted actions, resilient
operations and the efficiency of our markets.

More information about ASX can be found at www.asx.com.au

ASX Annual Report 2021 / Who we are

Our vision

The world's most respected
financial marketplace

FY21
HIGHLIGHTS

Our strategy

Diverse ecosystem

Provide an open system
to support partnerships,
products and services
across the Australian
financial ecosystem

Innovative solutions
and technology

Offer innovative solutions and
technology to drive efficiency
and deliver benefits to
customers, employees and the
wider financial marketplace

Enduring trust, integrity
and resilience

Earn trust and deliver resilience
by making sure our systems and
processes are stable, secure,
reliable and fair, and our people
act with integrity towards the
market and each other

Customer-focused

Collaborative culture

Think deeply about
how we can improve
the experience for our
customers, deliver them
value and make their
lives easier

Foster collaboration and
agility within our businesses,
across our teams and among
our customers, regulators
and other stakeholders

2
2

ASX Annual Report 2021 / Our vision and strategy
ASX Annual Report 2021 / FY21 highlights

FY21

HIGHLIGHTS

For our customers

$102bn
total capital raised
to enable companies
to manage their
operations and grow,
up 5% on last year

199
total listings, including
43 technology
companies

For our shareholders

Nine
consecutive years of
operating revenue
growth reflecting the
strength of ASX’s
diversification

$480.9m
statutory net profit
after tax, down 3.6% on
last year due to interest
rate environment;
underlying net profit
after tax down 6.4%
on last year

For our people

93%
corporate action volume
now straight-through
processed for real-time
delivery in ASX’s new
global messaging
corporate action
notification service,
removing manual
handling, delivering
richer market data
and lowering risk

223.6c
total dividends per
share, fully franked,
down 6.4% on last year

92%
of employees proud to
work at ASX

96%
believe ASX is committed
to providing a safe and
healthy workplace

98%
of our people have
confidence in ASX’s
response to the
COVID-19 pandemic

For our financial markets and Australia

147,077
company
announcements
published on our
platform - a new annual
record, up 7% - an
average of 66 per
company across the
year, keeping the
market informed

6.6m
Australians hold listed
investments directly
with a further 900k
intending to invest,
according to the latest
ASX Australian
Investor Study

$586k
raised on the inaugural
Trading Day for Charity
for the ASX Refinitiv
Charity Foundation,
to support Australian-
based children's,
disability and medical
research causes

ASX Annual Report 2021 / FY21 highlights

CHAIRMAN'S LETTER

Dear fellow shareholders,

It is a great pleasure to be writing my first letter as your Chairman
of ASX.

No other organisation plays the role ASX does: provider of
critical financial market infrastructure for the nation; trusted and
respected around the globe; and strongly committed to serving all
its stakeholders with diligence and integrity. Doing what we do is
a privilege that carries significant responsibility.

I come into the position at an exciting time. ASX is a great company
with an attractive business model, proud history and talented
people. The extraordinary period of the pandemic has tested all
of these qualities.

I will build on the work of my predecessors and apply fresh energy
and insights to navigate through the dynamic environment in which
we operate. There are challenges ahead but opportunities too.

It is an honour to lead the Board and represent your interests. I look
forward to meeting you soon.

Long-term sustainability
The theme of the report for the 2021 financial year (FY21) is
long-term sustainability. This means acting prudently and
with purpose across time.

Long-term sustainability aptly describes ASX’s history. Our company
stretches back 150 years to the Sydney Stock Exchange, which had
the longest period of continuous operation among the six state-
based exchanges that amalgamated to form ASX in 1987. Earlier
exchanges, emerging from the Victorian gold fields in the 1850s,
were relatively short-lived. Hand-in-hand with longevity is ASX’s
preparedness to innovate. Be it introducing electronic trading,
merging equities and futures markets, or embracing distributed
ledger technology, we often lead the exchange world.

The ASX way is to hasten slowly. To build value patiently and
strategically. We must continue to perform our core functions
with excellence and adopt new, world-best technologies too. This
means keeping our people, regulators and investors close, and our
customers even closer. It might not be spectacular or revolutionary
but it achieves results. While long-term sustainability means staying
the course and keeping an eye on the future, it also means learning
from experience and improving our practices when things go wrong.

Your Board and senior management do not take your support nor the
confidence our stakeholders have in ASX’s operations for granted.
We are determined to earn and retain your trust. Trust underpins
our sustainability. It is the most valuable of assets.

Financial highlights
The COVID-19 pandemic continued to have an impact on markets
in FY21. Nevertheless, the inherent strength of ASX’s diversified
business model delivered solid financial results.

• Statutory net profit after tax (NPAT) fell 3.6% to $480.9 million,
down $17.7 million, compared to last year (FY20) and underlying
NPAT fell 6.4%, down $32.9 million. This was driven by the
impact of the Reserve Bank's current policy settings on our
futures volumes and interest income.

ASX Annual Report 2021 / Chairman's letter

‘Modernising and innovating are
key to long-term sustainability
and future value, including for
our customers, employees,
shareholders and other users
of Australia's financial markets.’

Damian Roche

• Statutory earnings per share (EPS) fell 3.6% to 248.4 cents,

down from 257.6 cents last year, and underlying EPS fell 6.4%,
down from 265.4 cents.

• Total ordinary dividends (interim and final) were 223.6 cents per
share, fully franked, down 6.4% on FY20. We have maintained
our payout ratio of 90% of underlying profit.

Accountable
ASX is working hard to rebuild trust following the technology
challenges experienced in FY21. Accountability has been an
important part of that rebuild.

We are sorry for the disruption caused by the market outage in
November 2020. In consultation with our regulatory agencies, we
commissioned an independent expert to review the incident. We
will incorporate the insights from this review into our own program
of improvement over the next 12 to 18 months. In addition, we
have reduced short-term variable reward payments to relevant
executives, and put in place a new organisational structure that
will support greater accountability.

Chairman's letter continued

While the Board accepts that risk is an unavoidable companion to
change, the outage fell short of the high standards we expect. We
will strengthen our framework and, just as importantly, continue
our technology upgrade program. This program has led to a lift in
ASX’s overall operational reliability and resilience in recent years.
Modernising and innovating are key to long-term sustainability and
future value, including for our customers, employees, shareholders
and other users of Australia's financial markets.

Customers at the centre
All successful companies have customers at the centre of their
activities. It is critical to long-term sustainability. It is no different
for ASX. I thank our customers sincerely for their support.

Across the year, ASX delivered value to our customers on multiple
fronts. Late in the period, for example, we completed the real-time
corporate actions straight-through processing service. This enables
the processing and delivery of critical information, everything from
dividends to entitlement offers, within seconds of announcement
using the latest global standard messaging. We also launched a
5-year treasury bond futures contract, which fills a gap in our interest
rate suite between the 3 and 10-year products, and continued the
expansion of our listings franchise. Here, new annual records were
set for technology and New Zealand company listings (excluding
backdoors), and the mining and resources sector had its best year
since 2011. These deepen the range of investable products and
stimulate the broader ecosystem.

ASX’s highest profile project – the replacement of CHESS powered
by distributed ledger technology – made good progress in FY21.
Work has moved from the design and build phase to testing and
delivery. The re-plan announced in October 2020 introduced new
leadership and will increase the new system’s scale and scope. It
has also added more time for testing, accreditation and customer
readiness. CHESS replacement is at the forefront of our goals to
make business easier for our customers and build an exchange for
the future. The project is on track for go-live in April 2023.

Underpinning all is continued investment in our licence to operate
activities. This includes strengthening our cyber resilience, refreshing
our rules and guidance, enhancing our risk management processes,
expanding our range of education and training materials, and
protecting the wellbeing of our people.

There can be no sustainable future without these vital building
blocks. Nor can we achieve long-term sustainability without setting
goals for ourselves. Your Board has adopted three sustainability
goals we aim to achieve by FY25. They relate to enhancing the
diversity and inclusiveness of our workplace; embracing renewable
energy sources and cutting emissions within our own operations;
and enabling the transition to a low carbon economy through the
products we develop and the disclosure and reporting standards
we encourage as market operator. Please see the Sustainability
section, starting on page 19, for details.

Board commitment
In April 2021 we farewelled Chairman Rick Holliday-Smith, who
served as a director of ASX since the merger with the Sydney Futures
Exchange in July 2006 and as Chairman from March 2012. Rick’s
achievements are numerous and impressive. He was an exemplar
of integrity, who managed a multitude of stakeholder interests
fairly and with skill. He understood the responsibility accompanying
the privilege of ASX's position at the heart of Australia's financial
markets.

I also acknowledge the sizeable contribution of Peter Marriott, who
stepped down as Chair of the Audit and Risk Committee in August
2021 after 12 years in the role. Peter is continuing as a director.

Ensuring the ASX Board has the right mix of expertise, industry
experience and diversity to oversee the next stage in the company’s
development is one of my priorities. We use a skills matrix to assure
ourselves that collectively the Board is well qualified in areas like
strategy, risk management, governance and technology to fulfil its
obligations to shareholders, staff and our broader communities.

Your Board is conscientious and committed. The blend of talent and
perspectives around the table keeps us grounded and focused on
our duties to you, our company and customers, and the environment
in which we operate.

I thank my fellow directors for their care and dedication.

I also thank our regulators, especially the Australian Securities and
Investments Commission and the Reserve Bank of Australia, with
whom we engage often and constructively. We have a common
interest in preserving the integrity, stability and long-term quality
of Australia’s financial markets.

Even with the customer at the centre, no organisation can succeed
without the talent, dedication and goodwill of its people. ASX’s
workforce has risen to extreme challenges in recent years.
I congratulate them on their achievements. Our stakeholders are
in safe hands.

Serving as Chairman of ASX comes with high expectations. I welcome
them. While we now live in a more uncertain world, I am optimistic
about the prospects for ASX. Thank you for your support in FY21
and for your confidence in ASX’s future.

Damian Roche
Chairman

ASX Annual Report 2021 / Chairman's letter continued

CEO'S YEAR IN REVIEW

Dear fellow shareholders,

It has been an eventful 12 months as the world has navigated the
health, social and economic impacts of COVID-19.

In Australia, we have seen a recession for the first time in decades
promptly followed by a swift recovery in GDP. We also saw the
highest rate of unemployment in 20 years recover to pre-COVID
levels within 14 months. The equity market has reached new highs
while interest rates have been at historic lows – a similar experience
to many developed markets around the world.

At ASX, it has been an intense and productive time, progressing our
technology contemporisation investment program alongside our
day-to-day activities, against the backdrop of changing COVID-19
conditions. I am proud of the way our people have responded to the
uncertainty and the challenges. Their resilience and commitment to
supporting each other, our customers and industry are commendable.

FY21 financial performance
The benefit of ASX’s diversification was evident in our financial
results for the 2021 financial year (FY21). Strong listings and
equity market activity countered the effects of the Reserve Bank
of Australia's (RBA) unprecedented policy settings put in place to
deal with the pandemic.

Operating revenue (as per ASX’s segment reporting) increased by
1.4% to $951.5 million, as three of ASX’s four business units delivered
revenue growth for the period.

• Listings and Issuer Services revenue rose by 8.9% driven by
new listings, which were at their highest number (176) since
FY08. The total amount of capital raised also grew to $102.5
billion, up over 5%.

• Derivatives and OTC Markets revenue decreased by 10.4% due
to the RBA’s yield curve control (YCC) measures at the short-end
of Australia’s interest rate curve impacting trading volumes.
This was partially offset by Austraclear’s higher transaction
and holding revenues.

• Trading Services revenue grew by 3.4% reflecting the increased
demand for ASX’s data and information products, which offset
the decline in cash market trading revenue, which was down
slightly on its record FY20 performance.

• Equity Post-Trade Services delivered a 12.8% increase in

revenue reflecting higher settlement messages.

Expenses (as per ASX’s segment reporting) rose 8.4% due to
additional costs to support licence to operate and growth initiatives,
as well as to manage variable equity market activity. In FY22, we
expect expense growth to return to between 5 to 7%.

Earnings before interest and tax (EBIT) (as per ASX’s segment
reporting) for the period was $641.2 million, down 1.7% on the
prior year.

Capital expenditure was $109.8 million, reflecting the expanded
CHESS replacement project and the continued investment in ASX’s
multi-year technology contemporisation program. Once the program
is completed in April 2023, the average age of our equity technology
infrastructure will be at its lowest level since the digitisation of our
markets in the 1990s.

ASX Annual Report 2021 / CEO's year in review

'The investments we are
making position ASX and
our industry for ongoing
success into the next
decade and beyond.'

Dominic Stevens

Investing in our ongoing success
We continue to position ASX to deliver long-term value for all
its stakeholders through our once-in-a-generation technology
investment program. The investments we are making position
ASX and our industry for ongoing success into the next decade
and beyond.

As we see locally and across the world, it is those companies
embracing technological change that lead their industry and grow
their business. In the increasingly technology-enabled world we
operate in, ASX also requires the flexibility and efficiencies of a
modern technology stack to provide the infrastructure and services
desired by our customers.

Importantly, ASX is well down this transformation track. Since 2016,
we have refreshed our derivatives and equities trading systems,
and upgraded the communications infrastructure that carries the
trading, clearing, settlement and data information between ASX
and its customers as well as the RBA’s Information and Transfer
System (RITS). We have also replaced our secondary data centre,
risk management and surveillance systems, and website.

CEO's year in review continued

Change is hard but worth it
Driving significant technological change is not easy. Change costs
time and money, and creates transition risk. The market outage
experienced when we changed our equity trading system last
November caused significant disruption to the market. This fell short
of our own high standards and the expectations we want to meet.

Providing open, innovative, technology
infrastructure
Another example of our investment in digitising Australia’s financial
system processes is the replacement of the technology that powers
ASX’s CHESS equity clearing and settlement system with distributed
ledger technology (DLT).

All outages are regrettable, but this one was particularly
disappointing as it overshadowed the improved operational
resilience our technology transformation program is delivering.

As a result of our efforts since 2016 to strengthen our risk
management, technology governance, enterprise architecture and
incident management, resilience has improved across our five key
trading, clearing and settlement systems. Specifically, on a six-month
rolling average, there has been an 87% drop in the number of
incidents that impact customers. There has also been a significant
reduction in the long-term run rate of outages since the end of 2016.
This is particularly encouraging considering these improvements
have been made during a period of significant expansion to the
scale and scope of our technology footprint.

We are working hard to regain the trust of our stakeholders following
the outage. We've applied learnings from the experience and taken
steps to enhance our processes and practices. An independent
review of the outage was commissioned by ASX in consultation
with our regulators. We expect the report will offer insights that we
can use on our journey to strengthen the resilience and reliability
of our infrastructure with world-leading technology over the next
12 to 18 months.

Digitising processes for the benefit of
our customers and industry
ASX’s history of technological innovation tells us that the long-term
benefits of change outweigh the short-term risks. Our program
to contemporise our technology will enable the next evolution of
process digitisation across Australia’s financial system. This evolution
will deliver cost and efficiency benefits to our customers and the
whole industry. These benefits will also flow through to the majority
of Australians given our compulsory superannuation system.

An example of how we are digitising processes is our recently
launched real-time corporate actions straight-through processing
service. It enables the processing and delivery of critical information
– everything from dividends to entitlement offers – within seconds
of announcement using the ISO 20022 global standard messaging.
This world-leading service makes it easier for companies to lodge
their corporate actions with fewer manual steps, which reduces the
risk of human error, ultimately delivering time and cost savings. The
benefits to investors include increased confidence in the data and
more timely information.

It has been a busy year for the project as it completes the build
phase and transitions into testing and delivery. This phase will see
the accreditation of all users, the migration of $2.7 trillion in equities
and the comprehensive testing of the completed new system. We
are meeting our milestones and on track for go-live in April 2023.

The new DLT-enabled CHESS system will unlock benefits and enable
innovation in the coming decade for ASX and our stakeholders.
Our confidence in its ability is anchored in the power of DLT.
Sometimes referred to as blockchain, DLT is called out as one of
the key technologies that will transform the way we do business
and manage data in the next 10 to 20 years.

ASX's investment in an enterprise-grade DLT is a long-term strategy.
It is akin to our experience investing in an enterprise grade data
centre, the Australian Liquidity Centre (ALC), which serves not only
ASX but our customers and the broader industry too. Just as the ALC
enables us to connect with our customers and allows our customers
to connect with their customers, ASX's DLT platform will provide
direct connectivity between organisations across the industry.

I am comfortable with these long-term strategies given the long-
term nature of who we are and what we do. We have transformed
and evolved, adapted and reinvented ourselves many times over our
150-year history. This has included increasing the speed, accuracy
and accessibility of the data our customers use, as well as improving
the efficiency, capability and resilience of the infrastructure upon
which those business activities are conducted.

Aligning our business for the future
In 18 months' time, with our technology contemporisation program
complete, we will be entering an era when we can leverage our
investments of the past five years. In readying ourselves for this new
era, we have evolved ASX’s structure to better reflect our strategic
priorities, enhance management responsibility and accountability,
and sharpen our focus on customers. We have realigned our teams
under four new business units reporting directly to me. They are a:

• Listings business – responsible for the origination of listed
primary and secondary equity, and investment products

• Markets business – responsible for cash equities and equity
derivatives trading, futures trading and clearing, and OTC
clearing

• Securities and Payments business – responsible for cash

equities clearing and settlement, issuer services and post-trade
investor services, Austraclear, ASX Collateral, payments and
Financial Settlement Management. This business includes the
CHESS replacement project

• Technology and Data business – responsible for technology,
connectivity and data-related businesses including Technical
and Information Services, DataSphere and DLT Solutions.

ASX Annual Report 2021 / CEO's year in review continued

Looking to FY22
We enter FY22 with a new Chair, Damian Roche, following the
retirement of Rick Holliday-Smith in April 2021. During his 23
years of service – first with SFE and then ASX – Rick’s passion for
financial markets and Australian ingenuity earnt the respect of
many, including me. I thank Rick for his support and counsel, and I
am looking forward to working closely with Damian as we continue
to build an exchange for the future.

I am pleased with the overall progress ASX made during FY21 and
encouraged by the operational momentum we take into the new
financial year.

Finally, I would like to thank each and every employee of ASX for
their dedication and effort over the past year. It is likely that FY22
will again be a year of uncertainty due to the ongoing impact of
COVID-19. However, I am confident that we have the right team
and are on the right path to earn the business and strengthen the
trust of all our stakeholders.

Thank you for your support.

Dominic Stevens
Managing Director and Chief Executive Officer

CEO's year in review continued

An important part of the new structure is the creation of a Customer
division, which brings together our customer-facing operations,
projects, digital, brand and marketing activities. The goal is to
improve the end-to-end customer experience.

This new structure took effect from 1 July 2021 and will be reflected
in ASX's financial statements for the first half of FY22.

Announcing our three sustainability
goals
Alongside creating the financial markets infrastructure of the future,
we are strengthening the key characteristics that have shaped ASX
over 150 years and which represent the three pillars of our approach
to sustainability: having trusted actions, resilient operations and
supporting efficient markets. These pillars are underpinned by our
six building blocks: good corporate governance, engaged people,
effective long-term risk management, responsible business, market
integrity and encouraging innovation.

In FY21, we identified three sustainability goals we want to achieve
by the end of FY25. These goals are in areas where we can make
meaningful progress from where we are today. They will be pursued
alongside our broader sustainability efforts.

Our first goal relates to our people; specifically, continuing our
efforts to build an increasingly diverse and inclusive workplace.
In recent years, we have made pleasing progress in this area. For
example, our efforts to narrow the pay gap between men and
women is working; on average, there were no pay gaps in similar
roles in FY21. ASX was also named in 2020-2021 by the Federal
Government’s Workplace Gender Equality Agency as an Employer
of Choice for Gender Equality.

Reflecting our commitment to having a truly diverse and inclusive
workplace, we have set ourselves a female workforce representation
target of 45% to be achieved by FY25.

Our second goal is committing to achieve net zero scope 1 and 2
emissions from our operations by the end of FY25. We recognise we
all have a part to play in transitioning to a low carbon economy. As a
marker of our progress, we are targeting 100% renewable electricity
from FY23, which will reduce our carbon emissions by over 85%.

These complement our work to reduce our energy usage through
investment in contemporary technology, which has enabled the
adoption of more energy efficient technology hardware and the
use of cloud computing.

The third goal encompasses ASX’s ability to help the transition of
the broader economy to a low carbon state. For example, our energy
derivatives can play an important part in supporting the transition
of the energy generation industry to renewable sources. And as a
market operator, we can encourage issuers to adopt best practice
climate change reporting via the Task Force on Climate-related
Financial Disclosures (TCFD) framework. We took this step as a
listed company ourselves this year.

ASX Annual Report 2021 / CEO's year in review continued

OPERATING AND
FINANCIAL REVIEW

The Operating and Financial Review outlines
ASX’s activities, performance, financial position
and main business strategies. It also discusses
the key risks and uncertainties that could impact
on ASX and its subsidiaries (together referred
to as the Group), and its ability to achieve its
financial and other objectives. The statements
are prepared and audited in accordance with the
Corporations Act 2001 and Australian Accounting
Standards, which comply with International
Financial Reporting Standards (IFRS).

Business model and operating environment
ASX operates a significant part of the infrastructure that supports
Australia's financial markets. ASX is a multi-asset class and
integrated exchange group. The Group operates markets for cash
equities and derivatives, and provides a full service offering including
listings, trading, clearing, settlement, registry, and information and
technical services.

The business is conducted through a number of regulated legal
entities. ASX holds market operator licences and clearing and
settlement licences to undertake its activities. ASX is subject to
oversight by the Australian Securities and Investments Commission
(ASIC) and the Reserve Bank of Australia (RBA).

ASX’s activities and revenues are grouped into four key businesses:
Listings and Issuer Services, Derivatives and OTC Markets, Trading
Services, and Equity Post-Trade Services. These are each discussed
separately later in this report.

ASX Annual Report 2021 / Operating and financial review

Operating and financial review continued

Group financial performance
Net profit after tax
Statutory net profit after tax (NPAT) for FY21 decreased 3.6% on the
prior comparative period (pcp) to $480.9 million. Statutory earnings
per share (EPS) were 248.4 cents, down 3.6% from the previously
reported EPS of 257.6 cents, reflecting the decline in earnings. FY20
included the non-cash impairment of $15.2 million on the Group’s
investment in Yieldbroker. There were no significant items in FY21.

The Group’s underlying NPAT, which excludes significant items,
decreased 6.4% on the prior year. Underlying EPS was down 6.4%.

Dividends
The Board’s dividend policy is to pay 90% of underlying profit after
tax. This is reviewed each time the Board considers payment of
a dividend. Underlying profit reflects NPAT adjusted for any
significant revenues or expenses such as those associated with
major restructuring, transactions or other material items that are
not commonly recurring.

ASX paid an interim dividend of 112.4 cents per share in March
2021 and directors have determined a final dividend of 111.2 cents
per share. Total interim and final dividends per share for FY21 of
223.6 cents are 6.4% lower than the prior year, and reflect the
decrease in underlying earnings. The final dividend will be paid on
29 September 2021.

Statutory net profit after tax ($million)

434.1

445.1

492.0

498.6

480.9

FY17

FY18

FY19

FY20

FY21

Statutory earnings per share (EPS) (cents)

224.5

230.0

254.1

257.6

248.4

FY17

FY18

FY19

FY20

FY21

Dividends per share (DPS) (cents)

99.8

102.0

FY17

109.1

107.2

FY18

Interim

129.1

114.3

114.4

FY19

Final

122.5

116.4

FY20

Special

111.2

112.4

FY21

Summary income statement for the year ending 30 June 2021

Based on the Group segment reporting note

Operating revenue

Operating expenses

EBITDA
Depreciation and amortisation

Total expenses

EBIT
Net interest income

Underlying profit before tax

Tax expense

Underlying profit after tax
Significant items after tax¹

Statutory profit after tax

Statutory earnings per share (cents)¹

Underlying earnings per share (cents)

Dividends per share (cents)
¹ Refer to note D2 of the financial statements for further detail.

FY21
$m
951.5

(256.8)

694.7
(53.5)

(310.3)

641.2
46.7

687.9

(207.0)

480.9
-

480.9

248.4

223.6

FY20
$m
938.4

(235.7)

702.7
(50.5)

(286.2)

652.2
83.8

736.0

(222.2)

513.8
(15.2)

498.6

257.6

265.4

238.9

Variance fav/(unfav)

$m
13.1

(21.1)

(8.0)
(3.0)

(24.1)

(11.0)
(37.1)

(48.1)

15.2

(32.9)
15.2

(17.7)

(9.2)

(17.0)

(15.3)

%
1.4

(8.9)

(1.1)
(6.0)

(8.4)

(1.7)
(44.3)

(6.5)

6.8

(6.4%)
-

(3.6%)

(3.6)

(6.4)

10 ASX Annual Report 2021 / Operating and financial review continued

Operating and financial review continued

Operating revenue
Operating revenue as reflected in the Group's segment note in FY21
increased 1.4% on the pcp to $951.5 million.

The key components of operating revenue
• Listings and Issuer Services revenue increased 8.9%, as a

result of strong new listings activity, elevated CHESS holding
statement volumes and other issuer-related CHESS messages.

• Derivatives and OTC Markets revenue decreased 10.4%,

reflecting lower futures and OTC clearing revenues, partially
offset by higher transactions and balances for Austraclear
services.

• Trading Services revenue increased 3.4%, resulting from higher

demand for information services.

• Equity Post-Trade Services revenue increased 12.8%, reflecting

higher settlement messages.

Listings and Issuer
Services

Derivatives and
OTC Markets

Trading Services

Equity Post-Trade
Services

Total operating
revenues

FY21
$m

258.2

284.6

265.0

143.7

FY20
$m

237.1

317.6

256.3

127.4

951.5

938.4

Variance fav/(unfav)

21.1

8.9

(33.0)

(10.4)

8.7

16.3

13.1

3.4

12.8

1.4

Cash Market
Settlement
8%

Equity
Post-Trade
Services
15%

Cash Market
Clearing
7%

Cash Market
Trading
7%

Listings
19%

Listings and
Issuer Services
27%

Trading Services
28%

Information
Services
12%

Derivatives and
OTC Markets
30%

Technical
Services
9%

Austraclear
6%

Futures and
OTC Clearing
23%

Issuer Services
8%

Equity Options
1%

Total expenses
As reflected in the segment note, total expenses (excluding significant
items) increased 8.4% to $310.3 million. This was within guidance
and is a result of higher costs to support initiatives and heightened
variable costs in line with greater issuer activity.

Staff

Occupancy

Equipment

Administration

Variable

ASIC levy

Operating expenses
Depreciation and
amortisation

FY21
$m

154.3

9.4

42.5

27.9

14.2

8.5

256.8

53.5

FY20
$m

145.4

9.7

35.4

26.0

10.7

8.5

235.7

50.5

Variance fav/(unfav)

(8.9)

0.3

(7.1)

(1.9)

(3.5)

0.0

(21.1)

(3.0)

%
(6.1)

2.7

(20.0)

(7.4)

(32.1)

0.5

(8.9)

(6.0)

(8.4)

Total expenses

310.3

286.2

(24.1)

• Staff costs increased 6.1% to $154.3 million. This reflects
the onboarding of headcount to support key initiatives.
The average full-time equivalent (FTE) headcount increased
to 742 compared to 709 in the pcp.

• Occupancy costs decreased 2.7% to $9.4 million, broadly flat

on pcp.

• Equipment costs increased 20.0% to $42.5 million, due to new

licensing and maintenance costs for initiatives and projects that
went live in the past 12 months.

• Administration costs increased 7.4% to $27.9 million, due to
insurance premium uplift and higher professional consulting
costs.

• Variable costs increased 32.1% to $14.2 million, due to higher
postage costs and volumes of CHESS statements aligned
with issuer activity.

• ASIC supervision levy decreased 0.5% to $8.5 million, broadly

flat on pcp.

• Depreciation and amortisation expenses increased 6.0%
to $53.5 million, primarily reflecting ASX's investments in
recent years.

Capital expenditure
The Group invested $109.8 million in capital expenditure during the
year, compared to $80.4 million in the pcp. This is within guidance.

FY21 expenditure primarily included the continued investment in
the CHESS replacement project, as well as for ASX Trade platform
upgrades and various initiatives to strengthen the resiliency of
ASX services.

ASX Annual Report 2021 / Operating and financial review continued

Operating and financial review continued

Investments
Investments for the period were up $2.0 million or 2.4% on the prior
year. Investments are detailed below. The movement reflects the
change in fair value of these investments.

• 44.3% shareholding in Yieldbroker Pty Limited, up $0.4 million
representing the share of equity profits. An unlisted entity
licensed to operate in electronic markets for trading Australian
and New Zealand debt securities.

• 5.6% shareholding in Digital Asset Holdings LLC, down $13.3

million as a result of a decrease in share price from US$17.94 in
the previous share issue to US$13.04 in the last funding round
in which ASX didn’t participate. This was partially offset by a
further US$2.0 million investment during the year. An unlisted
US domiciled technology entity.

• 49.5% shareholding in Sympli, up $4.9 million representing

additional investment partly offset by share of equity account-
ing loss. A joint venture established to provide electronic
property conveyancing and settlement services.

• 9.8% shareholding in DSMJ Pty Ltd (trading as Grow Inc).

In May 2021, ASX invested $10.0 million in Grow Inc, an entity
that develops key infrastructure for superannuation funds
via the implementation of a distributed ledger technology
application platform.

Amounts owing to participants
Amounts owing to participants were down $462.4 million or 3.6%
compared to the prior year, reflecting a decrease in the open
positions held in interest rate and equity index futures, as well
as equity margins and OTC derivative positions. ASX holds these
collateral positions to cover cash market and derivatives exposures
as part of its clearing operations.

The movement in participant balances results in a corresponding
movement in cash and other financial assets, as the balances are
invested by ASX.

Right-of-use assets and lease liabilities
In accordance with AASB 16, ASX recognised assets and liabilities
for all leases with a term more than 12 months. As at 30 June
2021, $64.3 million of right-of-use assets and $72.4 million of lease
liabilities are recognised on the balance sheet, representing ASX's
right to use the underlying leased asset and obligations to make
lease payments respectively.

Net interest income

ASX Group net interest
income

Net interest on collateral
balances

Total net interest income

FY21
$m

(3.9)

50.6

46.7

FY20
$m

Variance fav/(unfav)

7.6

(11.5)

(151.5)

76.2

83.8

(25.6)

(33.6)

(37.1)

(44.3)

Net interest income decreased 44.3% to $46.7 million. Net interest
consists of two components: interest earned on ASX’s cash balances
and net interest earned from the investment of collateral balances
lodged by participants.

Net interest on ASX’s cash balances and financing costs from
borrowings and leases was down 151.5% to ($3.9) million. Cash
balances incurred decreased earnings rates, resulting in lower
interest predominantly due to RBA rate cuts.

Net interest earned from the investment of participant balances
decreased 33.6% to $50.6 million. Investment earnings on this
portfolio averaged 13 basis points compared to 37 basis points in
the pcp. The average Futures Client charge also decreased to 32
basis points compared to 35 basis points in the pcp. This decrease
was partially offset by a 14.0% increase in average cash collateral
and commitment balances to $12.2 billion.

Financial position
At 30 June 2021, the net assets of the Group were $3,736.3 million,
broadly flat on 30 June 2020.

Summary balance sheet for year ending 30 June 2021

30 June
2021
$m

30 June
2020
$m

Variance increase/
(decrease)

Assets
Cash

5,357.8

858.1

4,499.7

Other financial assets¹

8,024.1

12,998.9

(4,974.8)

Intangibles
(excluding software)

Investments

Right-of-use assets

Other assets²

Total assets

Liabilities
Amounts owing to
participants

Lease liabilities

Other liabilities

Total liabilities

Equity
Capital

Retained earnings

Reserves

2,325.6

2,325.9

87.6

64.3

85.6

74.9

737.6

1,071.4

16,597.0

17,414.8

(0.3)

2.0

(10.6)

(333.8)

(817.8)

12,214.8

12,677.2

(462.4)

72.4

573.5

81.1

936.1

12,860.7

13,694.4

(8.7)

(362.6)

(833.7)

3,027.2

629.9

79.2

603.8

89.4

26.1

(10.2)

524.4

(38.3)

(0.0)

2.4

(14.2)

(31.2)

(4.7)

(3.6)

(10.8)

(38.7)

(6.1)

4.3

(11.4)

Total equity
0.4
1 Includes other financial assets at amortised cost and financial assets at fair

3,736.3

3,720.4

15.9

value through profit or loss.
2 Other assets include software.

12 ASX Annual Report 2021 / Operating and financial review continued

Operating and financial review continued

Listings and Issuer Services

Total capital raised ($billion)

Business model and operating environment
ASX, through its listing rules and infrastructure, provides a facility for
companies to list, raise capital and have their securities publicly traded.

The Group provides a range of services to issuers of capital, including
the generation of issuer holding statements and other shareholder
and sub-register services. ASX also lists debt securities (including
government debt securities) and exchange-traded investment
products.

The Group earns revenue from listed entities for initial listing, annual
listing, secondary capital raisings and for issuer services. The main
drivers of revenue in this category include the:

• Number of listed entities and their market value

• Number and value of initial public offerings (IPOs)

• Level of corporate actions, such as secondary capital raisings

• Number of holding statements.

Results of operations
Listings and Issuer Services revenue was $258.2 million, up 8.9%,
reflecting the following.

• Annual listing revenue down 2.7% to $89.9 million. A decrease
in the number of billed listed entities and a decline in billed
market capitalisation resulted in lower revenue.

• Initial listing revenue up 0.9% to $18.6 million. There were 176
new listings compared to 83 in the pcp and capital raised in the
current period of $40.6 billion was well up on the pcp of $27.0
billion. However, revenue is amortised over five years and the
pattern of historical initial listing fees received resulted in an
increase of 0.9% for the period.

• Secondary capital raisings revenue up 14.3% to $64.1 million.
Capital raised in the current period of $61.9 billion was down
on the pcp of $70.2 billion. However, revenue is amortised
over three years and the pattern of historical secondary listing
fees received led to an increase of 14.3% for the period.

• Other listings revenue up 11.0% to $9.9 million. Exchange-traded
products (ETP) revenue increased as a result of strong growth
in funds under management (FUM) balances year-on-year.
There was also an increase in re-instatement activity and higher
application review/advice fees for future new listings compared
to the pcp.

• Issuer services revenue up 23.6% to $75.7 million. With elevated
issuer activity there was a notable increase in the number of
CHESS holding statements, up 32.1%, and other issuer-related
CHESS messages compared to pcp.

81.7

86.0

97.2

102.5

56.0

FY17

FY18

FY19

FY20

FY21

Market cap of new listings

Scrip-for-scrip

Secondary capital

Initial listing fee revenue contribution per year under AASB 15
($million)

17.3

15.2

19.2

18.4

18.6

$1.3

$2.5

$17.1

$16.1

FY17

FY18

FY19

FY20

FY21

FY12

FY13

FY14

FY15

FY16

FY17

FY18

FY19

FY20

FY21

Colours represent the year in which revenue was generated and the periods over which
it is amortised.

Secondary listing fee revenue contribution per year under
AASB 15 ($million)

48.4

51.2

44.2

64.1

$14.4

56.1

$11.7

$44.4

$49.7

FY17

FY18

FY19

FY20

FY21

FY14

FY15

FY16

FY17

FY18

FY19

FY20

FY21

Colours represent the year in which revenue was generated and the periods over which
it is amortised.

ASX Annual Report 2021 / Operating and financial review continued

Operating and financial review continued

Business strategies
ASX has implemented a range of initiatives in recent years aimed at
enhancing the attractiveness of Australia as a place to list and raise
capital. These include updates to the listing rules and guidance notes.

ASX has continued to focus on expanding the number of foreign
companies and those from the technology sector listed on the
exchange.

Leveraging on the increasing number of technology companies listed,
ASX launched the S&P/ASX All Technology Index in FY20. The index
has enhanced the profile and understanding of the technology sector
in Australia and increased opportunities for investors.

In order to broaden the choice for customers, ASX has a range
of products and asset classes available for issuers and investors.
Some of the investment products that complement traditional
equities include:

• Bonds – ASX provides the ability for clients to trade Australian
Government bonds on exchange in the same way as equities
are traded

• ETPs – in recent years ASX has increased the number and

range of ETPs. The value of ETPs listed on ASX increased 72.8%
to $113.7 billion in FY21

• Managed funds (mFund) – mFund allows investors to apply
for and redeem unlisted managed funds using their broker
platform. At 30 June 2021, there were 240 funds available on
mFund with a market capitalisation of $1.74 billion, 52.5% up
on the pcp.

Derivatives and OTC Markets

Business model and operating environment
ASX offers exchange-traded derivatives, including the trading and
clearing of futures and options on futures on interest rate, equity
index, agricultural and energy contracts, as well as exchange-traded
options over individual securities. The number of contracts traded
is the primary revenue driver.

Through the licensed ASX Clear (Futures), ASX provides central
counterparty clearing (CCP) of these exchange-traded derivatives
as well as clearing of over-the-counter (OTC) derivatives. This entity
provides risk management services supported by clearing participant
collateral and funds provided by both ASX and participants, which
are available in the event participants fail to meet their obligations.
Through a process known as novation, the CCP assumes the credit
risk of all trades centrally cleared and thus facilitates an efficient
and orderly clearing and settlement function for the market.

FY21 futures activity was impacted by the RBA’s COVID-driven yield
curve control (YCC) program. In the short-term, YCC is expected to
remain in place.

Austraclear provides settlement, depository and registry services
for debt securities and cash transactions. ASX’s model for debt
securities settles transactions on a trade-by-trade basis, which
provides for certainty of settlement. The number of transactions
is the main revenue driver.

Depository services are provided through the Austraclear central
securities depository (CSD). These securities consist of fixed income
securities including government bonds. Settlement of transactions
on these securities occurs through real-time gross settlement (RTGS).
The value of securities held is the main revenue driver.

Registry services are provided whereby Austraclear facilitates
security registration and the subsequent cash transfers associated
with the terms of the individual securities. The main drivers of
registry revenue are the number and value of securities held in
the registry.

ASX Collateral service allows customers of ASX to utilise collateral
held in Austraclear to meet obligations to other customers or to
ASX’s clearing subsidiaries. The value of collateral balances managed
is the main revenue driver.

ASX's investments in Yieldbroker and Sympli are equity accounted
for within the Derivatives business line.

Results of operations
Derivatives and OTC Markets revenue was $284.6 million, down
10.4%, reflecting the following.

• Futures and OTC revenue down 11.8% to $214.4 million. Futures

volumes down 15.0% on the pcp. The introduction of a 5-year bond
product and strong growth in the 10-year bond product (up 15.1%),
partly offset a decline in the short-term rates products. The overall
decline in volumes is partially offset by an increase in the average
futures fee due to a change in the product mix, with growth in
commodities products. Value cleared through the OTC clearing
service was down 58.2% on the pcp.

• Equity options revenue down 37.3% to $11.6 million. Subdued
activity resulted in lower index options volumes, down 45.9%,
and single stock option volumes, down 13.7% on the pcp. A rebate
scheme, Options Liquidity Growth Program, was also in place for
3Q21 to help promote growth.

• Austraclear revenue up 4.4% to $58.6 million. The increase
was primarily driven by registry, with higher balances in the
depository and increased transactions.

ASX futures and options on futures contract volume (million)

142

156

172

169

144

FY17

FY18

FY19

FY20

FY21

14 ASX Annual Report 2021 / Operating and financial review continued

Operating and financial review continued

Business strategies
Through ASX’s Austraclear platform, ASX delivers collateral
efficiency to customers with its collateral management service.
This service allows customers to utilise collateral held in ASX’s
Austraclear debt registry to meet obligations to other customers
(mainly repo transactions) or to ASX’s clearing subsidiaries.

The OTC Clearing service includes A$ and NZ$ interest rate swaps
and client clearing. Notional open interest at the end of June 2021
was $3.1 trillion, down 39.2% on the pcp.

In FY18, ASX invested in a joint venture, Sympli, which has been
established as an electronic lodgment network operator (ELNO).
Sympli is approved to operate as an ELNO in Victoria, Queensland,
South Australia and New South Wales. Integration with the RBA
and the first major commercial bank is complete.

Trading Services

Business model and operating environment
Trading Services comprises the trading of securities in the cash market,
as well as the information and technical services offered by ASX.

Cash market comprises the trading of equities, warrants,
exchange-traded funds and listed debt securities. The value of
turnover transacted on the ASX market is the primary revenue driver.

Information services includes the provision of real-time market data
for the cash and derivative markets, and the provision of indices,
company news, and index and other reference data. The main revenue
drivers are the number of end-users accessing real-time market
data and customer enterprise agreements for the provision of data.

Technical services consists of four main categories of services to
facilitate market connectivity and access to ASX and third-party
services by customers. These are:

• ASX's distribution platform, hosting of customer infrastructure
within the Australian Liquidity Centre (ALC) and ASX Net site
management

• Connection services to facilitate connectivity to the ALC

• ASX service access including access and sessions for market

data products and clearing and settlement systems

• Market access to trading sessions, liquidity cross-connects and

order entry, as well as trade gateways.

Revenue drivers for each category consist of the volume of services
used by customers, such as the number of connections to ASX
markets or the number of cabinets hosted in the ALC.

Results of operations
Trading Services revenue was $265.0 million, up 3.4%, reflecting
the following.

• Cash market trading revenue down 5.0% to $61.0 million.

The decrease in revenue resulted from:

- Lower on-market trading value of $5.8 billion per day, down
3.7%. ASX’s share of on-market trading averaged 88.8% in
FY21, down 0.6% on the average of 89.4% in the pcp

- Auctions and Centre Point value were down 11.5% on the pcp,

both of which have higher associated revenues.

• Information services revenue up 10.5% to $118.0 million.

The increase in revenue resulted from:

- Increase in equities and futures market data distribution, and

fee changes to certain data products

- Increased index royalties from Standard & Poor's (S&P) and

additional bank bill swap rate (BBSW) distribution.

• Technical services revenue up 0.9% to $86.0 million.

The increase in revenue was due to:

- Growth in hosting and connections with the number of
cabinets up from 326 to 368 and the number of ALC
cross-connections up from 1,078 to 1,170 at 30 June 2021

- Growth in revenue was offset by a decline in futures market

access fees.

Business strategies
The Trading Services strategy is to provide innovative services to
maximise the attractiveness of trading on ASX and to meet the
needs of a varied customer base. This includes providing leading
price discovery and liquidity access execution types, such as Auctions
and Centre Point.

The Centre Point order type is an example of ASX innovation
following feedback from end investors. The various Centre Point
order types provide customers with optionality and control over
how their orders are executed.

Auctions and Centre Point value traded ($billion)

113.0

334.0

120.4

409.9

106.1

363.2

107.0

237.0

106.5

262.1

FY17

FY18

FY19

FY20

FY21

Auctions

Centre Point

ASX Annual Report 2021 / Operating and financial review continued

Operating and financial review continued

Results of operations
Equity Post-Trade operating revenue was $143.7 million, up 12.8%,
reflecting the following.

• Cash market clearing revenue up 8.6% to $71.0 million.

There was a decrease of 3.6% in the value of on-market trades
centrally cleared in the market in line with total value traded
in the market. An average of $6.1 billion on-market value was
centrally cleared each day by ASX Clear and no calls were made
on the clearing guarantee fund in the current or prior year. As a
result of the decline in year-on-year activity, a revenue sharing
rebate is not applicable and therefore overall revenue is up on
the pcp, given $8.3 million was paid in the pcp.

• Cash market settlement revenue up 17.2% to $72.7 million.

The number of messages was up on pcp with the most notable
growth in transfer and conversions, up 30.9%, resulting in
a revenue share rebate of $4.5 million. This is lower than the
FY20 revenue share rebate of $6.1 million. FY20's rebate was
higher because of the heightened volumes of 2H20.

Business strategies
ASX provides cash market clearing and settlement services to the
Australian market.

ASX’s Equity Post-Trade strategy is to innovate to improve the
efficiency of clearing and settlement, so to allow our customers to
offer new products and services to benefit issuers and investors.

ASX's CHESS replacement project continues to progress. In October
2020, following industry consultation, the scope and functionality of
the new system was expanded and the time for testing increased.
Go-live was updated to April 2023.

Further details on this initiative are included on page 7.

ASX DataSphere is ASX’s open data infrastructure solution offering
customers the ability to unlock value through insights and analysis
in a secure and governed ecosystem. ASX’s broad range of data,
combined with other data sources, provides the ability to offer
additional data and analytics to an array of users.

Within the information and technical services offerings, ASX’s
strategy is predominantly driven by the needs of clients in equities
and derivatives. These requirements include the hosting of hardware
and connectivity, as well as low latency (high speed) services to
access information and ASX’s trading platforms.

Demand for information services is impacted by the level of market
activity and the number of users accessing ASX market data. ASX’s
services are tailored to meet changing customer requirements such
as electronic usage of data. ASX provides enterprise licences for
large users of data that offer pricing certainty to customers along
with standard monthly royalty plans.

ASX’s success in expanding its technical services follows the
investment in the ALC and communications network (ASX Net).
ASX will continue to invest in its product and service offerings in
its efforts to be the leading provider for the financial community.

Equity Post-Trade Services

Business model and operating environment
ASX’s clearing and settlement infrastructure provides risk
management services through its CCP and delivery-versus-payment
settlement of cash market trades. ASX’s post-trade operations are
backed by significant Australian-based capital and collateral, and
are overseen by Australia’s regulators. Through a process known
as novation, the CCP assumes the credit risk of all trades centrally
cleared and thus facilitates an efficient and orderly clearing and
settlement function for the market.

Cash market clearing
The CCP supports these risk management activities with collateral
lodged by clearing participants and ASX funds in the clearing
guarantee fund. These collateral and guarantee fund resources can
be called upon if a clearing participant does not meet its obligation to
finalise a trade that has been novated to the CCP. The main revenue
driver is the value of equity securities centrally cleared.

Cash market settlement
Cash market settlement is conducted through the Clearing House
Electronic Sub-register System (CHESS). This system registers the
title (ownership) of shares. ASX’s model for cash market settlement
maximises efficiency through the netting of settlement obligations
in each individual security and the netting of all payment obligations,
while minimising the risk of settlement failure. The main driver of
settlement revenue is the number of settlement messages, which
can be impacted by a number of variables including the level of
transactions and the netting efficiency.

16 ASX Annual Report 2021 / Operating and financial review continued

Operating and financial review continued

The table below describes ASX’s key risks and how we respond to them. For more information on ASX's approach to risk management
please see page 26 of this report.

Risk
Regulation,
market structure
and competition

The risk and its impact
ASX operates in highly regulated markets. Changes in
regulations and/or market structure can impact on ASX
or its customers and the environment in which we operate.

How we are responding
• We regularly engage with government, regulators and
industry participants on market structure issues to
promote the best industry-wide efficiency outcomes.

Examples of how ASX’s business could be impacted include if:

• We engage with our customers to seek feedback on the

• Regulatory requirements were changed for certain important

services

• ASX’s products or services did not meet industry expectations

in terms of quality or value

• New competitors commenced operation in Australia.

Economic
environment and
market activity

ASX’s business can be impacted by the level of market activity.
This is influenced by one or more of economic performance,
government policy, RBA policy, and general financial market
conditions in Australia and overseas.

Slowing economic conditions or a lessening of general market
volatility can lead to a reduction in activity and revenues.

Examples of how ASX’s business could be impacted if there was
a slowdown in the Australian economy include:

• Fewer new listings

• Less secondary capital raisings

• Slowdown of growth rates associated with data products

and/or technical services.

Examples of how ASX’s business could be impacted if there was
a lessening of market volatility include:

• Decline in the volume and value of equities traded

• Lower trading volumes in derivatives.

quality and value of our products and services, and continually
look for ways to improve these.

• We monitor the performance of individual products and

services against those available elsewhere to support ASX's
ability to deliver a strong value proposition.

• We consider the impact of ASX-driven change on our

customers.

• We invest in technology enabling us to stay at the forefront of

innovative products and services.

• We regularly and constructively engage with government on

the future direction of policy impacting our business.
• We continue to build resilience into our business model

through the diversification of revenue streams.

• We are growing those services that have annuity-style

revenue streams.

• We are focusing on enhancing our reputation as a listing venue
with emphasis on both technology and foreign companies.

• We continually look to introduce new domestic and

international participants to our trading markets and
clearing and settlement facilities.

• We continue to add to and enhance ASX's suite of products
and services to meet evolving customer needs and which
adapt to changing market conditions.

Operational
excellence

The resilience, continuity and quality of our operational
processes are critical to our ability to operate.

• We have people, processes, systems and controls in place

designed to meet our operational benchmarks.

This risk arises when failures in our people, processes, systems
or controls impact on the delivery of our products or services to
our customers.

The occurrence of such a failure may result in reduced customer
service, the inability to provide services, reduced revenues,
increased costs, fines or regulatory issues.

This category also captures the risk that our project execution
is poor, which could lead to a failure of our strategic projects to
deliver expected outcomes.

• We regularly assess how we can make improvements to the

resilience and reliability of our operational processes.

• We regularly consider the effectiveness of our controls.

• We monitor customer complaints for feedback on where we

could improve performance.

• We have project management disciplines in place to reduce
the likelihood of poor project execution leading to delays
or delivery failures in strategic projects, and will upgrade
these in response to the independent expert's review of the
November 2020 outage.

• We have business continuity plans that are regularly tested.

• We have an incident management framework requiring that
timely attention be paid to rectifying incidents as they occur.

• We undertake resource planning and have staff training and

retention programs.

ASX Annual Report 2021 / Operating and financial review continued

Operating and financial review continued

Technology
availability

ASX operates critically important financial market infrastruc-
ture which is expected to be open and available at all relevant
business times.

• We regularly monitor the availability of our systems
against targets and test to understand maximum
throughput capacity.

A risk to ASX arises where infrastructure and technology are
unreliable and have slow recoverability or insufficient capacity,
and where this cannot be quickly increased. Issues that would
heighten this risk are the prevalence of ageing infrastructure,
systems or applications that are near their end of life, and a
significant increase in cyber attack activity.

• We monitor the health of critical systems and have

contingency plans in place for disruptions.

• We replace ageing technology in a phased and planned
manner. Recent examples include the project to replace
CHESS with a DLT solution, and upgrading our secondary
data centre and ASX Trade platform.

The risk may result in reduced ability or an inability to deliver
ASX’s trading, clearing and settlement services, reduced
customer service, reduced revenues, unplanned remediation
or replacement costs, or further licence conditions.

Counterparty
default risk

This risk arises in our licensed clearing and settlement facilities
when a participant fails to meet its contractual obligations to
any of the facilities.

Depending on the size and complexity of the defaulting coun-
terparty, the default could lead to extremely volatile conditions
in global financial markets. This, along with ASX’s default
management strategy, will determine the size of any possible
loss sustained by ASX.

Investment returns

Financial losses may arise from investment decisions taken in
relation to the management of collateral balances received from
clearing and settlement activity, from the investment of ASX’s
own capital, or the clearing and settlement facilities' pre-funded
default capital resources.

Investment returns on collateral balances and ASX's own capital
can also be impacted by changes in RBA policy. Lower interest
rates and investment spreads can lead to lower returns.

ASX also makes equity investments in support of its broader
business objectives (e.g. Yieldbroker, Digital Asset, Sympli, Grow
Inc).

Reputation and
stakeholder
confidence

The ongoing success of ASX is highly dependent on its
reputation for trust, integrity and resilience in everything
we do.

Reputation risk arises in a wide variety of situations.
For example, where ASX is perceived to have not acted
with integrity or failed to deliver resiliency in its activities.

Any outcome that causes detriment to this reputation has the
potential to damage ASX’s future business prospects through
reduced business volumes, or regulatory impact or intervention.

• We constantly engage with our vendor partners who provide

some of our critical systems and applications.

• We have a regular disaster recovery testing program in place.

• We have a cyber security strategy in place and continually

look to improve our capability.

• As part of our regulatory framework, ASX has the financial

resources in place to withstand the concurrent default of our
two largest participants under extreme but plausible market
conditions.

• We enforce minimum financial and operating criteria for

participants.

• We require participants to provide collateral in the form of

initial margin, and to make regular, frequent and at least daily
variation margin payments.

• We hold pre-funded default risk financial resources.

• We have technology and risk policies and procedures to
constantly monitor and manage counterparty exposures.

• We have default management strategies that are regularly

fire-drilled.

• We have recovery plans for extreme default scenarios.
• We have investment limits in place under which ASX is

required to invest its funds in highly rated counterparties,
with short-term maturities.

• We closely monitor financial markets activity, performance

and sentiment to inform investment decisions.

• We monitor the business strategy and financial performance

of companies that we have invested in, and follow the
prescribed accounting treatment in terms of impairment or
loss recognition should that be necessary.

• We aspire to be the world’s most respected financial

marketplace.

• Understanding the importance of our reputation and

protecting it is at the centre of everything we do.

• ASX considers the possible reputation risk in all its business

activities and decisions.

• We have refreshed our company values and focus on

trustworthy behaviours.

• We have regular and open engagement with customers and
wider stakeholders to seek feedback on our performance.

• We have regular interaction with our regulators and
government at management, CEO and Board level to
facilitate thorough coverage of issues.

• We engage regularly with media to help generate reporting

that is fair, informed and balanced.

18 ASX Annual Report 2021 / Operating and financial review continued

SUSTAINABILITY

As the custodians of a business that has been
operating in various forms for 150 years, ASX’s
Board and Management are committed to the
company's long-term sustainability.

We recognise that our responsibilities go beyond
providing financial markets infrastructure,
products and services. They also include
supporting the long-term success of our industry
and a responsibility to lead by example among
our listed company peers. And as an employer
we have a responsibility to support and develop
our people and our workforce.

Sustainability governance
The Board oversees ASX’s sustainability approach and activities.
It is responsible for approving sustainability matters as well as
monitoring ASX’s progress.

The CEO is responsible for and reports to the Board on sustainability
matters including ASX’s sustainability agenda and priorities.

ASX’s sustainability approach is driven by the Sustainability
Working Group (SWG). Chaired by the Chief Financial Officer, the
SWG comprises a mix of executive managers and senior employees
from across the business, as well as functional areas such as risk
management. The SWG is also responsible for the coordination and
implementation of ASX’s sustainability initiatives across the Group.

ASX Annual Report 2021 / Sustainability

Sustainability continued

Our approach
Trust, resilience and efficiency have long been hallmarks of ASX. The
last 18 months of a global pandemic have shown the importance
of these foundational elements to ASX’s ability to operate at the
heart of Australia’s financial markets.

Our 2021 sustainability disclosures have been prepared in accordance
with the GRI Standards: Core Option and can be found throughout
this Annual Report and on ASX’s website. In addition, for the first
time, ASX will publish a Task Force on Climate-related Financial
Disclosures (TCFD) report, which outlines how we assess and monitor
possible climate-related risks and opportunities.

Sustainability pillars
ASX’s approach is designed to strengthen our three sustainability
pillars: trusted for our actions, providing resilient operations and
supporting efficient markets. Together, they form a foundation
from which ASX can create value for its customers, regulators,
employees and shareholders.

Material focus areas
Underpinning our three pillars are six focus areas, each one
considered to be material to our business.

These material focus areas were identified through a robust process
in FY20. Following continued monitoring and engagement with
internal and external stakeholders, we remain confident these
are the most material non-financial risk areas for ASX to focus on
acknowledging that they can - and are likely to - change over time as
environmental, social and governance (ESG) areas and issues evolve.

We have changed the descriptors of three focus areas to more
accurately reflect the nature of their activities. Specifically, Economic
Growth has been updated to Innovation; Market Oversight has been
updated to Market Integrity; and Business Ethics has been updated
to Responsible Business.

Encouraging innovation

• New products and services
• Supporting economic growth

Leading by example
with good governance

• Policies setting out protocols,
practices and accountability
• Policies articulating minimum
standards of behaviour

Engaging our people

• Community: giving, volunteering
and fundraising
• Diversity and inclusion
• Training, learning and development
• Wellbeing

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• Systemic risk
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20 ASX Annual Report 2021 / Sustainability continued

Sustainability continued

Trusted actions

Resilient operations

Efficient markets

In various forms, ASX has been at the heart
of Australia’s financial services industry for
150 years. We strive to earn our stakeholders
confidence in our actions through good corporate
governance and engaging our people.

Through good corporate governance practices, we act with
transparency, accountability and effectiveness. We seek to lead by
example and showcase the importance and value of good corporate
governance.

Our ability to be trusted for our actions reflects the values and
behaviours of our people. We recognise that we have the ability
to influence the actions of our people through what we do to look
after their wellbeing, support their career aspirations, and help
them feel included and valued. We are committed to building an
engaged, skilled and responsible workforce, guided by our BE Values
and behaviours. Doing so enables ASX to achieve our vision of being
the world’s most respected financial marketplace.

Enhancing our Code of Conduct

Corporate governance

Through ASX’s Code of Conduct, Anti-bribery and Corruption, and
Whistleblower Protection policies, we set the standards of behaviour
expected from our people to collectively meet the standards required
by stakeholders. These policies apply to our directors, employees
and contractors.

Over the last 12 months, ASX's Code of Conduct was updated to
provide greater clarity on its expectations regarding behaviour.
This was achieved through distilling ASX’s expectations into
specific standards and providing relevant examples to enhance
understanding.

Measuring our values-based culture

People

We are committed to building a values-driven culture because our
people’s actions are just as important as the outcomes they deliver.

Our values are interwoven with the way we work. Each year
we review our peoples’ demonstration of our values as part of
their performance review process, and this is connected to their
reward. We reinforce this through ongoing recognition programs
and quarterly awards. We measure how our employees live the
values through regular surveys, the results of which are reviewed
by the Board.

Our values are to:

Be Open, Be Trustworthy, Be Original, Be The Example.

The annual ASX staff survey assesses the company against 18 factors,
including engagement, leadership, collaboration, communication,
alignment and involvement.

Engagement %

Diversity %

Risk culture %

FY19

FY20

FY21

Key insights from the FY21 survey included:

• ASX's overall engagement score increased to 73%

Embedding and managing standards of
behaviour

• The aggregate measures of how employees rate ASX's support
for and actions to increase diversity at ASX improved for the
third year in a row to 92%

• The aggregate measure of employee responses to a range of

questions asked to measure risk management and compliance
practices and behaviours was 92%.

Instilling a culture where every employee not only has the
opportunity to speak up but feels comfortable to do so is a key
area of focus for ASX. In FY21, 92% of employees agreed that they
feel this at ASX.

Corporate governance

Each year, all ASX employees undertake mandatory online training.

In FY21, the Code of Conduct online training module was updated
to reflect the Code's update during the year.

ASX’s annual processes to embed standards of behaviour also
includes policy adherence attestation from all staff.

ASX also monitors and investigates breaches of Board-approved
policies. In FY21, ASX did not identify any Code of Conduct breaches
or instances of bribery or corruption.

For more information regarding ASX’s approach to corporate
governance, please see pages 30 to 42, as well as ASX’s website.

ASX Annual Report 2021 / Sustainability continued

Sustainability continued

Trusted actions

Resilient operations

Efficient markets

Development
Role changes, promotions and secondments are key components
of our development strategy. We also offer a range of educational
development opportunities. In FY21, the number of employees who
were provided formal e-learning courses increased from 57% to 88%.

COVID-19 required our leaders to manage teams remotely on a
scale never seen before. With leaders managing hybrid teams, ASX
engaged DeakinCo, part of Deakin University’s Faculty of Business
and Law, to facilitate a new leadership program at ASX called
LEAD – Lead, Engage and Deliver. 195 leaders began this six-month
program in March.

Graduate program

Who do you
want to BE?

Graduate Program

Launched in FY20, our graduate program seeks to identify individuals
who are early adopters of new technology, innovative thinkers, and
customer focused. In January 2021, we welcomed our first six
graduates to ASX who work in the areas of software and application
development, cyber and analytics.

Our initial focus on technical skills recognises that graduates can
inject new ideas into our business and apply contemporary thinking
from academia to the work we do.

The two-year program sees graduates rotate across different
areas of the business. The program combines formal learning and
on-the-job experience, and culminates in a permanent role with ASX.

Developing our workforce

People

Headcount
Over FY21, ASX’s permanent employee base grew by 4% as we
continued to strengthen our skills and add to our capabilities,
particularly in the areas of technology and data.

In FY21, voluntary turnover was 10% compared to 11% in the previous
financial year. This is a level that balances workforce stability with
the introduction of new skills. Given the backdrop of COVID-19
uncertainty and impact, it was not surprising that ASX's rate
declined. Ours was an experience consistent across the industry
– the average voluntary turnover of Australia's financial services
industry declined to 9% in 2020 from 12% in 2019.

Remuneration
ASX employees receive a market competitive fixed remuneration
package. Subject to performance, employees also participate in a
short-term variable reward program, which provides employees with
a mix of ASX shares and/or cash (depending on the role). Details
about our remuneration practices and policies are included in the
Remuneration Report on pages 43 to 60.

Through the General Employee Share Plan, ASX supports employees
wanting to be shareholders by offering them the opportunity to buy
$1,000 of ASX shares at a 10% discount on a pre-tax salary sacrifice
basis. ASX also covers the brokerage costs. In FY21, this offer was
accepted by 61% of staff.

ASX also provides a number of employee benefits to all permanent
and maximum term employees, such as salary continuance insurance,
a suite of discount and corporate rewards, and subsidised sport and
social programs.

Managing performance and development
We believe that our performance is supported by high-performing
individuals who seek to improve their skills and grow in their careers.
Equally, we know that career development and training is crucial
to employee engagement and retention.

All employees are expected to set challenging goals and behave in
accordance with our BE Values. Ninety-seven percent of employees
have documented deliverables and behavioural goals.

Our people are assessed against these expectations annually.
Their performance informs their variable reward. Our performance
management systems and processes encourage regular
conversations between managers and employees which form an
important part of their development.

22 ASX Annual Report 2021 / Sustainability continued

Sustainability continued

Trusted actions

Resilient operations

Efficient markets

Ongoing employee safety and
wellbeing

People

Workplace health and safety
Our people's safety and wellbeing have been at the centre of our
response to COVID-19 and continued to be a priority throughout FY21.

Central to our efforts has been regular communication and providing
practical resources for all employees. During periods of COVID-19
driven restrictions, ASX employees were given the flexibility needed
to manage their workload and caring responsibilities.

Overseeing ASX’s management of its workplace health and
safety is the Audit and Risk Committee. The Committee receives
quarterly updates on ASX’s compliance with workplace health and
safety (WHS) laws from the Health and Safety Committee. WHS
performance is audited periodically by an independent third party.

ASX’s FY21 lost time injury frequency rate (the number of lost time
injuries per total hours worked) was below the industry average
at 0.69.

Prevention of harassment and discrimination
ASX works to prevent discrimination and harassment in the
workplace. ASX has a range of policies and processes to monitor
and address discrimination. ASX utilises annual online training for
all employees and encourages employees to speak up on any or
potential inappropriate behaviour.

Workplace wellbeing
ASX defines ‘workplace wellbeing’ as a state in which people are
able to work productively and creatively, build positive relationships
and make a meaningful contribution. In early FY21, ASX brought
its wellness programs and wellbeing support together into the BE
Well @ ASX program which focuses on:

• Connection - our connection with others

• Body - looking after our physical health

• Mind - looking after our mental wellbeing

• Financial - having access to resources to help manage financial

challenges.

During FY21 additional resources added to the wellbeing online
resource centre included virtual instructor-led and learner-led
education resources across a wide range of wellness-related topics.

A new Wellbeing Wednesday email, highlighting the available
support and topical activities was also launched during the year.

ASX continued to host a number of expert speaker sessions.
Experts in neuroleadership and peak performance research provided
employees the opportunity to hear and learn from leaders in
their field.

Mental health first aid officers
We trained and launched a number of mental health first aiders
(MHFA) during FY21. MHFA provides evidence-based training, which
gives our employees the skills and confidence to have supportive
conversations with their co-workers and help guide them to
professional help if needed.

MHFA programs increase knowledge and confidence, reduce the
stigma attached to mental health, and provide another route for
employees to seek support and advice.

This initiative was supported with the launch of WeCARE@ASX, a
voluntary e-learning module, designed to develop staff capability
and confidence in talking about mental health through a lens of
care and compassion.

Domestic family violence
ASX has a family and domestic violence policy designed to create
a safe workplace and support employees in need. ASX does this
by providing leave arrangements and counselling services. In FY21,
in collaboration with our employee network groups (ENGs), we
partnered with a leading expert to create a tailored educational
video. The video focused on how to build understanding about
domestic and family violence; raise awareness for how ASX fosters
a safe, respectful and inclusive workplace for victims; and provide
information on what employees can do if someone raises an issue
with them.

Increasing our diversity and inclusion

People

Diversity of backgrounds, perspectives and thinking brings enhanced
performance. ASX is committed to achieving a diverse and inclusive
workplace. For ASX, it is important we are a workplace where our
people feel they can safely be their best selves. That is, a workplace
where employees are treated fairly, respectfully and not judged
for their gender, age, ethnicity, race, cultural background, religion,
disability, caring responsibilities, sexual orientation or gender
identity.

To achieve ASX’s goal of being a diverse and inclusive workplace,
our strategy is comprised of four initiatives:

• Workforce inclusion

• Representation of diverse talent

• Leadership accountability

• Policies and processes.

ASX Annual Report 2021 / Sustainability continued

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Resilient operations

Efficient markets

Gender diversity
ASX has been recognised as an Employer of Choice for Gender
Equality for 2020-22 by the Workplace Gender Equality Agency
(WGEA). This citation recognises our commitment to gender equality
in areas such as flexibility, parental leave, women in leadership
and pay equity.

Inclusion
Diverse and inclusive teams enable ASX to offer a safe environment
and contribute to ASX being considered to be a great place to
work. Reflecting ASXs focus on diversity and inclusion, in the FY21
engagement survey 86% of our employees said they believe they
can be their authentic self at work.

ASX celebrates employees from all backgrounds and cultures, and we
support five employee network groups (ENGs) that raise awareness
and provide education in areas its members are passionate about.
The ENGs are developed, chaired and run by employees. The five
ENGs cover a range of areas including gender equality, culture
and heritage, volunteering in the community, mental and physical
health, and LGBTIQ.

ASX’s support for these groups comes through:

• Financial support to enable events, communication and raising

awareness of the aims of the ENG

• The provision of resources and guidance on the governance,

structure and goals of the group

• Executive sponsorship to advocate for the ENG and providing

mentorship to ENG leaders

• A Diversity and Inclusion survey to gain suggestions and

feedback on ENG events and programs of work

• Membership to organisations such as Diversity Council of
Australia, Pride in Diversity, WiBF, Champions of Change
Coalition and Australian Network on Disability.

Outlined below are some highlights from the ENGs this year:

• The Culture&Heritage ENG organised ASX’s first NAIDOC week

event in July 2020

• ENG Q ASX held its first event Wear It Purple Day

• The most recently launched ENG, ASX WellBEing, hosted
an external speaker to share their own mental health
challenges throughout their career, reinforcing ASXs efforts
to encourage all employees to speak up about mental health
in the workplace.

ASX has been committed to achieving greater representation of
women at all levels of the organisation for many years. In FY21,
having achieved our previous target of females accounting for 40%
of the total workforce, we increased our target to 45%. Effective
from FY22, ASX is targeting its achievement by FY25.

Some of the initiatives employed to increase gender representation
include:

• Setting gender diversity targets. Achievement against the

targets is monitored by the Remuneration Committee

• Embedding gender equality targets as part of an executive’s
balanced score card and review the executive’s achievement
against these targets when determining their short-term
variable reward

• Promoting gender-balanced hiring practices and reviewing
talent and succession plans to ensure there is no systemic
bias based on gender

• Supporting and contributing to Champions of Change Coalition

studies and resources, with our CEO being a member.

Gender pay
ASX supports providing equal pay for employees irrespective of
their personal characteristics, such as gender, and conducts annual
gender pay reviews.

Each year, a review is conducted to identify any employees with a
difference in remuneration that can’t be explained by differences
in qualifications, experience, tenure, and/or performance. These
differences are addressed in the following remuneration review.
Pleasingly, in FY21, the analysis concluded that, on average, males
and females were paid equitably for like-for-like roles.

The following table reports ASX’s gender diversity performance at
various levels within the organisation as at 30 June 2021.

Reporting

Diversity % of women
On the Board

Executive committee roles

General management roles

Management/team leader roles

Total % of women in management
position roles
Professional/technical roles

Administrative roles

Across the entire organisation

Target

FY20

FY21

40%

50%

40%

27%

29%

36%

41%

39%

36%

82%

40%

33%

36%

38%

39%

40%

84%

42%

24 ASX Annual Report 2021 / Sustainability continued

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Efficient markets

ASX in the community
The ASX Refinitiv Charity Foundation has been running since 1996
and has raised more than $30 million for over 170 charities through
its events and auctions.

On 26 November 2021, ASX hosted the inaugural Markets Trading
Day for Charity, bringing several institutions together to help raise
money for Australian-based children’s, disability and medical
research charities. ASX donated its cash market trading proceeds
from the day and nabtrade donated all of its brokerage revenue
too, and with the support of the contributing sponsors, together
raised $586,000.

ASX Giving
ASX encourages employees to volunteer within the community.
Every employee has access to two days paid leave for volunteering
opportunities, including not-for-profit board directorships and
mentoring. ASX also offers to match the personal charitable
donations of employees, up to the value of $500. In the FY21 ENG
survey, 48% of respondents stated they had ASX match their
charitable donations.

At the end of 2020, ASX recognised the particularly difficult year
it had been for charitable organisations. As part of the annual
Christmas gift to employees, ASX made a $30 Christmas donation
on behalf of every staff member to one of three charities nominated
by ASX’s ENGs. The three charities supported were Beyond Blue,
World Wide Fund for Animals and the Wayside Chapel in Sydney.

Supporting flexibility

People

Hybrid
Working
Hub

ASX continued to focus on supporting our employees during periods
of lockdown over the course of FY21. An online hybrid working
hub was launched offering resources on best practice advice and
latest tools for hybrid working, as well as guidance on utilising
technology to enhance collaboration. It also contains resources
to equip managers and employees to discuss different types of
flexibility, and offers guidance to ensure productivity and wellbeing
while working in a hybrid environment.

We seek employee feedback annually. In FY21, 91% of ASX employees
said they had the flexibility they need to manage work, caring and
other responsibilities. This compares to the industry average of 76%.

Parental and care support
ASX’s gender-neutral parental leave policy provides 16 weeks paid
leave for primary carers and four weeks paid leave for secondary
carers. The paid parental leave offering is above the Financial
and Insurance Services industry average reported by WGEA.
Superannuation contributions foregone during unpaid parental
leave are paid as a one-time contribution upon an employee’s return
to work, up to a maximum of 36 weeks. Graduated return to work
options are available to support employees’ transition back to the
workplace from extended leave.

ASX’s commitment to creating a flexible workplace is supported
through a range of gender-neutral policies and strategies. ASX
was recognised again by Direct Advice for Dads as one of the best
Australian workplaces for new dads.

ASX has also maintained its Breastfeeding Friendly Workplace
Accreditation since 2013, and has recently been recognised as having
best practices to support mothers in the workplace.

ASX Annual Report 2021 / Sustainability continued

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Resilient operations

Efficient markets

During the peak of the worldwide COVID-19
pandemic in 2020, ASX’s systems remained open.

A significant part of this was the investment made in upgrading the
technology infrastructure used in performing credit stress testing
in ASX Clear (Futures).

This period of record volumes and historically
high volatility demonstrated the importance of
our operational resilience.

From a sustainability perspective, our ability to provide resilient
operations requires disciplined long-term risk management and a
commitment to operating as a responsible corporate citizen.

ASX’s disciplined approach to long-term risk management is a
critical component in the resilience of our day-to-day operations,
as it reduces the impact and likelihood of negative outcomes. While
we are unable to guarantee there will never be negative outcomes,
ASX is committed to continually improving its risk management
practices and embedding a risk management culture as we strive
to minimise their occurrence.

Long-term resilience also comes from the adoption of responsible
business practices. While technology and society continues to
evolve, doing the right thing remains a constant in business. Our
stakeholders have growing expectations about how we manage
our suppliers, minimise our impact on the environment and play
our part in reducing our carbon emissions.

Embedding our risk and compliance
culture

Risk management

In FY21, ASX continued to focus on strengthening its risk management
approach, and embedding its risk and compliance culture.

We continue to review our Risk Appetite Statement to challenge
ourselves on whether our Key Risk Indicators are generating risk
discussions and focus in the right areas.

FY21 also saw a further embedding of the 3 Lines of Defence risk
management organisational accountability structure. Line 1 teams
reported to the Audit and Risk Committee on how they manage the
risks they are responsible for in their business area.

The Enterprise Risk Management team has continued to provide
risk training to our Risk Champions, being those individuals located
throughout the Group who have the responsibility for championing
risk management within their teams. Our Risk Champions are integral
to strengthening ASX’s 3 Lines of Defence risk model, and helping
support the risk framework and strategy.

Reducing systemic risk

Risk management

ASX’s two clearing houses, ASX Clear and ASX Clear (Futures), play
important roles in reducing systemic risk in Australia’s financial markets.
During FY21, ASX progressed its program of continuous improvement
aimed at ensuring the resiliency of our two clearing houses.

26 ASX Annual Report 2021 / Sustainability continued

In FY21, we also engaged with clearing participants to understand
what they consider to be market stress scenarios at the boundary of
‘extreme but plausible’. These stress scenarios are important inputs
for determining the quantity of pre-funded capital the clearing
houses need in order to withstand the concurrent default of their
two largest clearing participants. As such, these stress scenarios
are important components assisting with reducing systemic risk in
the Australian financial system.

Mitigating cyber risk

Risk management

ASX's Board and Management rank cyber risk as one of the Group's
most critical risks to be managed and mitigated. Annually, the
Board’s Audit and Risk committee approves ASX’s cyber strategy
and oversees its implementation within the organisation. Through
the ongoing execution of this strategy, ASX focuses on a range
of risk mitigation activities encompassing both technical and
non-technical solutions such as regular cyber security training,
awareness and testing sessions for our staff. The strategy also
includes regular reviews of ASX’s security risk monitoring and
management processes and systems.

The risk of cyber-attack continues to grow in both frequency and
sophistication. In FY21, ASX invested in risk mitigation activities
designed to proactively prevent and detect cyber events as well
as respond to and recover from them should they impact on the
organisation. Over the past 12 months, ASX’s efforts included
strengthening its network segmentation, upgrading legacy
infrastructure and maturing its compliance with the Australian
Signals Directorate Essential 8 Strategies to Mitigate Cyber Security
Incidents.

In addition, ASX continues to support national efforts to mitigate
cyber risks. Over the past 12 months, ASX responded to consultation
papers regarding the Federal Government's Cyber Security Strategy,
provided comments on proposed amendments to the Security of
Critical Infrastructure Act, and continued to work with the Australian
Cyber Security Centre.

Assessing risks of modern slavery

Responsible business

ASX is committed to ensuring that the Group’s operations and
supply chain do not involve modern slavery. ASX's Modern Slavery
Policy articulates our commitment to identifying and addressing
these risks in order to minimise their occurrence and remediate
them if identified. In addition, various ASX Group policies and
procedures (such as our Supplier Code of Conduct, Procurement
Policy, Vendor Management Framework and request for proposal
documentation) provide additional safeguards for identifying and
addressing modern slavery risks.

Sustainability continued

Trusted actions

Resilient operations

Efficient markets

In FY21, our global supply chain comprised approximately 500
direct suppliers from a total of 15 countries, including Australia, the
USA, Ireland, Sweden, Belgium, Luxembourg, Singapore, England,
Hong Kong, New Zealand, Czech Republic, China, France, Canada
and Switzerland. During the reporting period, 51% of ASX's total
supplier spend was assessed for modern slavery risks. This covered
those suppliers considered to be Critical Service Providers and Tier
1 suppliers, as well as those considered to be high risk given their
industry, product or country of operation.

In FY22, ASX will roll out a Modern Slavery e-Learning module to
be undertaken annually by all employees.

ASX’s Modern Slavery Policy and Statement can be found at
www2.asx.com.au/content/dam/asx/about/policies/asx-modern-
slavery-statement-fy21.pdf

Ongoing tax transparency

Responsible business

ASX believes in paying its fair share of tax. As a signatory to
the voluntary Tax Transparency Code issued by the Australian
Government Board of Taxation, ASX publishes a Tax Transparency
Report each year. ASX takes a low risk approach to managing
its tax position, which includes not entering into transactions or
structures that have the primary objective of reducing tax liabilities.
We are proudly an Australian company and proud of the economic
contribution we make through the tax we pay each year.

As a large organisation, ASX is included in the Australian Tax Office’s
(ATO) top 1,000 Justified Trust Program, designed to build and
maintain community confidence that taxpayers are paying the
right amount of tax and are identifying and addressing tax risks.
Under the ATO’s Streamline Assurance Review (income tax only)
and its latest Combined Assurance Review (income tax and GST),
ASX obtained a high level of assurance in both reviews.

In FY21, ASX’s effective tax rate for the Group was 30.1% and we
paid a total tax contribution of $340.4 million.

ASX’s FY21 Tax Transparency report is available at www2.asx.

com.au/about/asx-shareholders/reports

Addressing climate change

Responsible business

Task Force on Climate-related Financial Disclosures (TCFD)
As a market operator, ASX has been a supporter of the TCFD since
2019. Through the ASX Corporate Governance Council Principles
and Recommendations we encourage issuers to use this disclosure
framework.

While ASX does not believe it has a material risk to climate change,
we do have a responsibility to adopt best practice reporting
standards and seek to improve our own disclosures each year.

ASX has commenced reporting against the TCFD recommendations
following the completion of an externally supported, Board-reviewed
assessment of ASX’s inherent climate risks and opportunities.

ASX’s FY21 TCFD report captures the findings of the scenario analysis
undertaken that assessed ASX's inherent climate change risks and
opportunities that may arise under 1.5ºC and 4ºC scenarios, over
the two time-horizons of 2030 and 2050. The table overleaf is a
summary of our TCFD disclosures.

Overall, the assessment confirmed that climate-related risks for
both transition and physical scenarios pose a low level risk to ASX.
It also affirmed ASX’s view that while ASX faces limited physical
risks from climate change, we do have considerable climate-related
transition opportunities. Notwithstanding its limited physical risks,
ASX is committed to reducing its carbon emissions and continuing
to monitor and assess its climate-related exposure.

Targeting net zero by FY25
While we know that it will be through our efforts to support the
Australian economy transition to a low carbon economy that we
will have the greatest impact on climate change, reducing our own
emissions is an important part of ASX doing what it can to reduce
global emissions.

In August 2021, ASX announced its commitment to achieving net
zero emissions by the end of FY25. In addition, ASX committed to
source 100% renewable energy from FY23 onwards, which will
reduce ASX's carbon emissions by over 85%.

Looking ahead, ASX is working towards having our pathway to net
zero verified by the Science Based Targets initiative (SBTi).

Adopting this medium-term goal builds on ASX’s efforts over the
past few years to reduce emissions, including using carbon neutral
paper since 2015 and investing in contemporary, energy efficient
technology hardware.

Moving to e-statements

Responsible business

CHESS statements are an important source of truth for investors.
They provide an independent and trusted record of trading activity,
and help protect against fraud. CHESS statements are sent to
investors with an ASX holder identification number (HIN) at the
end of each month in which they have transacted.

By the end of calendar year 2021, investors will have the option
of receiving these statements in electronic format. ASX is working
closely with the industry and expects some brokers to be ready
to offer the service to their clients on day one. Importantly,
investors will retain the ability to choose how they receive their
CHESS statements as some will continue to prefer to receive paper
statements.

Enabling the electronic delivery of CHESS statements is an important
initiative with benefits for investors, companies, registries and the
environment. Investors will receive their monthly notification faster
by eliminating postage time. Companies and issuers will save on
the costs incurred in mailing hardcopy statements. Brokers will
have returned data delivered electronically rather than physically,
cutting time, reconciliation errors and costs. And the reduction in
paper usage will be a win for the environment.

ASX Annual Report 2021 / Sustainability continued

Sustainability continued

Trusted actions

Resilient operations

Efficient markets

TCFD implementation summary

Climate change
governance

• Added a review of sustainability approach and activities to

• Climate risk to be reviewed as a standalone risk in annual

annual agenda

Group Enterprise Risk review

Progress to FY21

Focus beyond FY21

• Established internal Sustainability Working Group (SWG)

Strategy

• Continued to grow the listed climate-resilient technology sector

through attracting new domestic and international listings
• Supporting energy market participants in transitioning to
renewable energy through the management of forward
price risk

• Adopted initiatives to increase ASX's operational climate
resilience through use of renewable energy and working
towards net zero

• Formed ESG data work stream to identify opportunities for
products to meet demand for sustainability-linked products
• Delivered education seminars to listed companies to support

their understanding and adoption of ESG ratings and reporting
frameworks

• CEO to provide Board with half yearly updates on sustainability
• Board to continue educating itself on climate-related risks
and opportunities, emerging developments and reporting
best practice

• Progress development of sustainability-linked data products
• Continue to evolve suite of risk management products to

support energy transition to renewable sources

• Incorporate climate risk and product design into business level

strategic planning

• Source 100% renewable electricity for ASX operations by FY23
• Expand opportunities to support listed companies develop

understanding of and skills in climate reporting

Risk management

• Assessed inherent climate change risks and opportunities over

• Add climate change as a standalone risk to the ASX Enterprise

2030 and 2050 time horizons

Risk Management register

• Conducted TCFD-aligned scenario analysis using high and low
emissions pathways for ASX's physical and transition risks

• Include climate change risk within ASX Risk Appetite Statement

Metrics and
targets

• Set net zero goal for scope 1 and 2 emissions in FY25
• Committed to using 100% renewable electricity from FY23

• Have net zero pathway verified by SBTi
• Ongoing enhancements of TCFD disclosures

FY21 environmental outcomes

Greenhouse gas (GHG) emissions
Scope 1 – diesel and gas¹

Scope 2 – electricity

GHG emissions by activity
Scope 1 – Combustion of diesel and gas¹

Scope 2 – electricity (Data centre customers)
– electricity (ASX direct usage)

Scope 3 – travel (business travel and commuting)
– paper usage (office)
– paper usage (CHESS statements and notifications)2

Paper usage
Office use

Unit
t CO2-e
t CO2-e

Unit
t CO2-e
t CO2-e
t CO2-e
t CO2-e
t CO2-e
t CO2-e

Unit
tonnes

2019
29.56

15,065

2019
30

10,546
4,520

758
0
0

2019
8.12

2020
30.12

14,762

2020
30

10,334
4,429

514
0.12
0

2020
5.46

2021
22.14

15,091

2021
22

11,317
3,775

253
0.01
0

2021
2.45

% change from
prior year
(27)%

10%
(15)%

(51)%
(92%)
-

% change from
prior year
(55)%

CHESS statements and notifications
1 In FY20 this calculation has been updated to more accurately reflect actual emissions during the period. Past years have also been updated for consistency.
2 GHG emissions reported are inclusive of carbon offset. ASX commenced using 100% carbon neutral paper in 2015.

tonnes

103

135

31%

Electricity and paper usage
Electricity GHG1 emission (excluding ASX’s data centre hosting) per $1,000 of revenue generated (in t CO2-e2)
Paper usage (excluding CHESS statements and notifications) by headcount (tonnes)
1 Greenhouse gas (GHG) emissions.
2 Tonnes of carbon dioxide equivalent.

FY20
0.0087 0.0077

FY21

0.0077 0.0033

% change from
prior year
(11)%

(57)%

28 ASX Annual Report 2021 / Sustainability continued

Sustainability continued

Trusted actions

Resilient operations

Efficient markets

ASX has a long history of supporting the
advancement and achievement of pricing and
operational efficiencies in Australia's financial
services industry.

Not only are these two forms of efficiency fundamental to ASX’s
ability to deliver sustainable growth, but they foster long-term
growth for the benefit of our customers and wider industry.

Through our market oversight role, we play an important part in
supporting the market integrity of Australia's financial markets.
We do this alongside regulators, the media, investors, financial
intermediaries and professional service providers such as proxy
advisers, lawyers and accountants.

We endeavour to continually strengthen the integrity of our
markets through a range of activities. These include the provision
of guidance relating to best practice governance, rules relating
to the requirements of becoming a participant within ASX’s
markets, and rules and guidance as to how listed companies can
meet their continuous disclosure obligations. All these factors
contribute to the ability of our markets to operate in a fair, orderly
and transparent manner.

Having responded to technology and societal changes for more
than a century, we have a proven track record of encouraging
innovation. History has shown that as we have evolved we have
been able to drive efficiencies and create value for our customers,
industry and Australia’s economy. Today we continue that tradition
through leveraging our enterprise-grade, contemporary technology
infrastructure for the benefit of not only our customers but their
customers. We strive to create new products in growing asset
classes, and invest in technology which enables us to make business
for our customers easier and our industry more efficient.

Supporting issuers on their ESG
journey

Market integrity

In FY21, ASX held a number of educational webinars on the various
ESG topics, ratings providers and reporting frameworks. We sought
to support those listed companies looking to understand and
embrace the evolving sustainability disclosure frameworks and
ratings context.

The program commenced with a series of webinars on the TCFD
framework. Offered in a series of industry specific webinars, they
focused on why and how issuers can apply it.

ASX also hosted Standard & Poor's to provide an overview of their
Corporate Sustainability Assessment survey. And in the first half of
FY22, MSCI is presenting an overview on its ESG ratings framework.

In partnership with the Australian Council of Superannuation
Investors and the UN Global Compact, ASX hosted in early June
2021 a two-day webinar focused on exploring the role of finance
in delivering on the Sustainable Development Goals.

Adding a new liquidity point for
Australia’s interest rate market

Innovation

The 5-year treasury bond futures contract was launched at the end
of November 2020. Created to support the evolving structure of
the underlying interest rate market, the 5-year contract
complements the 3 and 10-year contracts already in existence. Initial
volumes have been encouraging and support ASX’s view that this
product has the potential to become one of our flagship interest
rate derivative products.

By providing this additional liquidity point and hedging tool at
the mid part of the interest rate curve, the new contract allows
participants to manage their risk exposure in a more efficient and
effective manner. It also creates new spread and relative value
trading opportunities for ASX’s customers and offers the chance
to mirror 5-year bond futures traded offshore.

Reducing risk, delivering efficiencies
and richer data

Innovation

Corporate actions are a critical feature in capital markets with
thousands of these events taking place on ASX every year. ASX’s
recently launched corporate actions straight-through processing
(STP) solution reduces the inherent risks for all participants
through simplifying, standardising, and removing manual steps in
announcement, data capture and support processes.

ASX’s corporate actions STP solution allows issuers to complete
smart online forms for the announcement of certain events, and in
doing so leverage the benefits of pre-populated data and validation.
This provides issuers with the certainty that they are entering all
the required and correct information. Investors get more accurate
and comprehensive information faster, delivered in the industry’s
preferred and easy-to-process global standard ISO 20022 compliant
format.

Corporate actions STP goes to the heart of ASX’s technology-driven,
customer-focused strategy, and is the latest example of how we are
contemporising and upgrading technology right across the business.
Investing in new and enhanced technology not only improves the
performance, efficiency and resilience of our customers, but it sets
up Australia’s market infrastructure for the future, offering exciting
opportunities for innovation and growth.

As the global leader in providing a fully automated end-to-end
solution, our corporate actions service delivers the most accurate,
comprehensive and timely corporate action event information,
utilising the latest industry standard messaging format.

ASX Annual Report 2021 / Sustainability continued

Corporate governance
CORPORATE GOVERNANCE

ASX Limited Board

From left: Heather Ridout, Rob Woods, Yasmin Allen, Dominic Stevens, Peter Marriott, Damian Roche, Peter Nash, Melinda Conrad, Ken Henry.

Damian Roche
Independent, Non-Executive Director,
Chairman

BCom

Dominic Stevens
Managing Director and CEO,
Executive Director

BCom (Hons)

Mr Dominic Stevens was appointed Managing Director and CEO of
ASX in August 2016. He was an independent non-executive director
of ASX from December 2013 until his appointment as CEO.

Mr Stevens is also a director of the ASX clearing and settlement
licensees and their intermediate holding companies.

Mr Stevens has over 30 years’ experience in financial markets.
He was CEO of Challenger Limited from 2008 to 2012, before
which he was the company’s Deputy CEO and Head of Capital, Risk
and Strategy.

Prior to Challenger, he held senior positions during a long career
at Bankers Trust Australia, where he had responsibility for the
Australian derivatives, global metals and agricultural commodity
derivatives businesses.

Mr Damian Roche was elected ASX’s Chairman in April 2021 and has
served as a director since August 2014. He is a member of the Audit
and Risk Committee and Remuneration Committee, and Chairman
of the Nomination Committee.

Mr Roche is Chairman of Austraclear Limited and a director of
ASX Clear (Futures) Pty Limited, the ASX clearing and settlement
licensees for Australia’s derivatives, OTC and debt markets. He is
also Chairman of their intermediate holding companies.

Mr Roche has over 20 years' experience in global investment banks,
with extensive cross-asset class expertise spanning the equities,
fixed income and commodities markets, with a specific focus on
the Asia-Pacific region, including Australia.

Mr Roche was a member of the global Corporate and Investment
Bank Operating Committee for J.P. Morgan. His final role at the bank
was Head of Markets and Investor Services, Sales and Distribution
for Asia-Pacific, based in Hong Kong.

Mr Roche is a director of Kaldor Public Arts Projects and HRL
Morrison & Co Limited.

30
30 ASX Annual Report 2021 / Corporate governance

Corporate governance continued

Yasmin Allen
Independent, Non-Executive Director

BCom, FAICD

Melinda Conrad
Independent, Non-Executive Director

MBA, FAICD

Ms Yasmin Allen was appointed a director of ASX in February 2015.
She is a member of the Audit and Risk Committee.

Ms Allen is a director of ASX Clear (Futures) Pty Limited and
Austraclear Limited, the ASX clearing and settlement licensees for
Australia’s derivatives, OTC and debt markets, and their intermediate
holding companies.

Ms Allen has over 20 years' experience in the finance industry,
including in investment banking and has expertise in financial
services, strategy development and corporate governance.

Ms Melinda Conrad was appointed a director of ASX in August
2016. She is a member of the Nomination Committee and the
Remuneration Committee.

She has over 20 years’ experience in business strategy and
marketing, and brings skills and insights as an executive and
director from a range of industries, including retail, financial services
and healthcare.

Ms Conrad has been a strategy and marketing adviser, an executive
with Colgate-Palmolive, and founded and managed a retail business.

She was formerly a vice president at Deutsche Bank, a director at
ANZ Investment Bank and an associate director at HSBC Group.

Ms Allen was appointed Chairman of Digital Skills Organisation
(Department of Employment) in January 2020 and Chairman of
Faethm.ai in February 2020. Ms Allen was appointed a director of
Santos in October 2014 and Cochlear Limited in August 2010. Ms
Allen’s previous appointments include director of Insurance Australia
Group Limited between November 2004 and September 2015.

Ms Allen is also Chairman of Advance, a director of the George
Institute for Global Health, and Acting President of the Australian
Government Takeovers Panel.

She was appointed a director of Stockland Corporation Limited
and Stockland Trust in May 2018, and Ampol Limited in March
2017. Ms Conrad’s previous appointments include director of OFX
Group Limited between September 2013 and September 2018, and
The Reject Shop Limited between August 2011 and June 2017.

Ms Conrad is also a director of the Centre for Independent Studies
and the George Institute for Global Health, and a member of the
AICD Corporate Governance Committee.

Dr Ken Henry AC
Independent, Non-Executive Director

BCom (Hons), PhD, DB h.c, FASSA

Peter Marriott
Independent, Non-Executive Director

BEc (Hons), FCA, MAICD

Dr Ken Henry was appointed a director of ASX in February 2013.
He is a member of the Audit and Risk Committee and the
Nomination Committee.

Mr Peter Marriott was appointed a director of ASX in July 2009. He
is a member of the Audit and Risk Committee and was the Audit and
Risk Committee Chairman between July 2009 and 18 August 2021.

Dr Henry is also a director of ASX Clear Pty Limited and ASX
Settlement Pty Limited, the ASX clearing and settlement
licensees for Australia’s equity markets, and their intermediate
holding companies.

Dr Henry has extensive experience as an economist in Australia and
overseas, and has worked as a senior policy adviser to successive
Australian governments.

Dr Henry served as the Secretary of the Federal Department of the
Treasury from 2001 to 2011. He is a director of Accounting for Nature
Limited, Cape York Partnership, a Chair of Wildlife Recovery Australia
and member of the ANU Below Zero Advisory Committee, Advisory
Board of the John Grill Institute of Projects (Sydney University) and
CEDA Leadership Council.

Dr Henry was Chairman of National Australia Bank Limited from
December 2015 to November 2019, having joined the board in
November 2011.

He is a director of each ASX clearing and settlement facility licensee
and their intermediate holding companies.

Mr Marriott has spent over 40 years in senior management roles
in the finance industry, spanning international banking, finance
and auditing.

Mr Marriott was Chief Financial Officer of Australia and New Zealand
Banking Group Limited (ANZ) from 1997 to May 2012. He also spent
two years as Group Head of Risk Management. Prior to his career
at ANZ, he was a partner of KPMG Peat Marwick specialising in the
banking and finance, and information technology sectors.

Mr Marriott was appointed a director of Westpac Banking
Corporation in June 2013. He is a member of the Council of Monash
University and is Chairman of the Resources and Finance Committee
of the Monash University Council.

ASX Annual Report 2021 / Corporate governance continued

Corporate governance continued

Peter Nash
Independent, Non-Executive Director

BCom, FCA, F Fin

Heather Ridout AO
Independent, Non-Executive Director

BEc (Hons)

Mr Peter Nash was appointed a director of ASX in June 2019. He
was appointed a member of the Audit and Risk Committee in June
2020 and appointed Chairman of the Audit and Risk Committee
with effect from 19 August 2021.

Mr Nash was formerly a Senior Partner with KPMG until September
2017. He was admitted to the partnership in 1993. Mr Nash served
as National Chairman of KPMG Australia from 2011 until August
2017. In this role, he also served as a member of the Global Board of
KPMG and was the Chair of KPMG’s Global Investment Committee.

Mr Nash is Chairman of Johns Lyng Group Limited and a non-executive
director of Westpac Banking Corporation and Mirvac Group Limited.
He is a board member of Reconciliation Australia, Koorie Heritage
Trust, Migration Council Australia and Golf Victoria.

Mr Nash’s previous appointments include member of the Business
Council of Australia and member of the Economic and Regulatory
Committee.

Mrs Heather Ridout was appointed a director of ASX in August 2012.

Mrs Ridout is also Chair of the Remuneration Committee and a
member of the Nomination Committee.

Mrs Ridout is a company director with a long history as a leading
figure in the public policy debate in Australia. She was formerly
Chief Executive of the Australian Industry Group, a major national
employer organisation representing a cross-section of industries
including manufacturing, construction, defence, ICT and labour
hire, until April 2012.

Mrs Ridout has been a director of Sims Metal Management Limited
since September 2011 and a director of the Australian Chamber
Orchestra since December 2012. Mrs Ridout was appointed a director
of AustCyber – The Australian Cyber Security Growth Network – in
July 2017, and as an Investment Committee member and Alternate
Director of the AustralianSuper Trustee Board in September 2019.

Mrs Ridout’s previous appointments include Chair of the
AustralianSuper Trustee Board (from 2013 to 2019, having
joined that Board as a director in 2007) and as a member of the
Board of the Reserve Bank of Australia (RBA) (from 2012 until
2017), Infrastructure Australia, the Australian Workforce and
Productivity Agency, the Henry Tax Review panel and the Climate
Change Authority.

Rob Woods
Independent, Non-Executive Director

BCom

Mr Rob Woods was appointed director of ASX in January 2020.
He was appointed as a member of the Audit and Risk Committee
in June 2020.

Mr Woods is Chairman of ASX Clear (Futures) Pty Limited and a
director of Austraclear Limited, the ASX clearing and settlement
licensees for Australia’s derivatives, OTC and debt markets. He
is also a director of their intermediate holding companies, ASX
Clearing Corporation Limited and ASX Settlement Corporation.
He was previously the Chairman of ASX Clear Pty Limited and ASX
Settlement Pty Limited.

Mr Woods has over 30 years of experience in financial markets.

He was Chief Executive, Strategy at Challenger Limited, and
has previously served as Chief Executive of Challenger's Funds
Management and Asset Management businesses. Mr Woods started
his career at Bankers Trust Australia and became Executive Vice-
President and Head of Equity Derivatives.

32 ASX Annual Report 2021 / Corporate governance continued

Corporate governance continued

Laying solid foundations for
management and oversight

Corporate governance framework
ASX operates an integrated exchange group in Australia and provides
a range of related data and technology services to its customers,
both local and global. ASX shares are listed on the ASX market.

As a market licensee, ASX is regulated by ASIC and the clearing
and settlement licensees within the ASX Group are also regulated
by the RBA.

Below is a diagram that provides an overview of ASX’s corporate
governance framework.

Corporate governance statement
ASX is committed to maintaining and promoting high standards of
corporate governance. We believe this underpins strong business
performance and retains the trust and goodwill of stakeholders –
including shareholders, customers, employees and regulators.

By corporate governance we mean the structures for accountability
and the framework of rules, relationships, systems and processes
within and by which authority is exercised and managed within
our company.

This report outlines ASX’s principal governance arrangements and
practices. It is current as at 19 August 2021 and has been approved
by the Board.

The ASX Board and its committees periodically review ASX’s
governance arrangements and practices to ensure they are in line with
regulatory requirements and developments in industry expectations,
and that they continue to support ASX’s strategic objectives.

Our governance arrangements have been consistent with the
fourth edition of the ASX Corporate Governance Council’s Corporate
Governance Principles and Recommendations (Principles and
Recommendations) throughout the reporting period. This statement
reports compliance with the fourth edition.

More information on ASX’s corporate governance, including

this Corporate Governance Statement and ASX’s Appendix
4G, is available on ASX’s website at www.asx.com.au/about/
corporate-governance.htm

Shareholders

ASX Board

CS Boards

Audit and Risk
Committee

Nomination
Committee

Remuneration
Committee

Enterprise compliance

Managing Director and CEO

Internal audit

ASX executives

External audit

ASX staff

ASX Annual Report 2021 / Corporate governance continued

Corporate governance continued

The role of the Board
The Board is committed to promoting long-term value creation and
is accountable to shareholders for the performance of ASX.

Board committees
The Board has established three committees to assist it in discharging
its role and responsibilities:

ASX’s Constitution governs the Board’s conduct. The ASX Board
Charter details the Board’s role and responsibilities.

The role of the Board is to provide leadership, guidance and
oversight for ASX and its related bodies corporate. The Board’s
responsibilities include defining the ASX Group’s purpose and setting
its strategic objectives, approving the annual budget and financial
plans, approving the ASX Group’s statement of values and code of
conduct, setting ASX’s risk strategy and risk appetite, and appointing
the Managing Director and CEO.

The Board oversees the ASX Group’s performance and progress
against strategic objectives, including for consistency with ASX’s
risk management strategy and risk appetite.

The Board has set the company’s vision to become the world’s most
respected financial marketplace. ASX’s progress in FY21 towards
achieving this long-term goal is set out in the Chairman’s Letter
and CEO’s Year in Review.

The ASX Constitution and ASX Board Charter are available

on ASX’s website at www.asx.com.au/about/corporate-
governance.htm

FY21 governance activities
During the year, the Board’s governance priorities and areas
of focus included:

• Board renewal and succession planning, including the

election of Damian Roche as ASX Chairman in April 2021,
following the retirement of Rick Holliday-Smith

• Continued oversight of the ASX Group’s organisational
performance in response to the COVID-19 pandemic,
including overseeing the conduct of the affairs of the
ASX Group consistent with its licence obligations and
public policy objectives directed at financial markets
and payment systems integrity. This included a focus
on people and culture including the development and
implementation of ASX’s return to office plan

• Oversight of ASX’s technology contemporisation

program, including the CHESS replacement project
and upgrades to other ASX core technology

• Oversight of ASX’s management of and response to the

ASX Trade outage in November 2020

• Updates to ASX’s Board Charter and Clearing and

Settlement Boards Charter, and oversight of
enhancements to ASX’s framework for cross-reporting
key matters between committees and boards

• Scheduled private meetings with external auditors and

head of internal audit

• Scheduled engagements with regulators including ASIC

and the RBA.

The Board continued to review its governance policies
and practices in FY21 to identify further enhancements
and efficiencies.

34 ASX Annual Report 2021 / Corporate governance continued

• Audit and Risk Committee

• Nomination Committee

• Remuneration Committee.

The role and responsibilities of the committees are set out in each
Board Committee Charter and are summarised in this corporate
governance statement.

The ASX Board Committee Charters are available on ASX’s
website at www.asx.com.au/about/corporate-governance.htm

Responsibilities of management
The Board has delegated matters to management, subject to
financial and other limits.

The Managing Director and CEO (CEO) has been delegated authority
for matters that are not reserved to the Board or delegated to the
Board Committees or Chief Compliance Officer.

The CEO’s responsibilities include (but are not limited to):

• Executing the Board-approved strategy and achieving ASX’s

business objectives

• Instilling the Code of Conduct

• The timely presentation of information to the Board to enable

it to fulfil its responsibilities.

The CEO is supported by executives who regularly attend and
present at Board meetings. The CEO has determined delegations
to executives who report to him.

The Company Secretary is accountable directly to the Board, through
the Chairman, on all matters to do with the functioning of the
Board. The Board appoints the Company Secretary with their role
set out in the Board Charter. Details of ASX’s company secretaries
are on page 61.

The ASX Board Charter and the biographies of ASX’s

executives are available on ASX’s website at www.asx.com.au/
about/corporate-governance.htm and www2.asx.com.au/about/
our-board-and-management/our-executive-team

Nomination and appointment of directors
The Board has established a Nomination Committee to help bring
the focus and independent judgment needed for decisions regarding
the composition of the Board.

The role and responsibilities of the Nomination Committee are
set out in its Charter. Its responsibilities include to evaluate
and make recommendations regarding the mix of knowledge,
experience, independence and diversity on the Board and Board
Committees, and to review and make recommendations on Board
succession planning.

The Nomination Committee Charter is available on ASX’s
website at www.asx.com.au/about/corporate-governance.htm

The Nomination Committee is comprised of four independent,
non-executive directors. The ASX Chairman Damian Roche chairs
the Nomination Committee. Melinda Conrad, Ken Henry and Heather
Ridout are also Committee members.

Corporate governance continued

Director tenure

Board gender diversity

Age of directors

0–3 years
4–6 years
7–8 years
>10 years

12%

33%

22%

33%

Female directors
Male directors
CEO

12%

45-54
55-64
65-74

12%

55%

33%

55%

33%

The number of times the Committee met during FY21 and the
individual attendance of its members at those meetings are disclosed
on page 38.

ASX undertakes checks before appointing directors and senior
executives. These checks include education, employment, character,
criminal history and bankruptcy checks. A statutory ‘fit and proper’
assessment applies to directors due to their involvement with
market licensees and/or clearing and settlement facilities. It is a
condition of appointment that any new director and executive is
not a disqualified person under this assessment. Directors and
executives make an annual declaration to this effect.

Any director (except the CEO) who has been appointed during the
year must stand for election at the next Annual General Meeting
(AGM). ASX provides shareholders with all material information in
its possession that is relevant to a decision on whether to elect (or
re-elect) a director.

New directors receive a letter of appointment that outlines ASX’s
expectations about time commitments, compliance with ASX policies
and regulatory requirements. The letter of appointment is between
ASX and the director personally.

ASX has a program for inducting new directors. As part of this
program, new directors typically receive briefings from executives
and Committee Chairs (as relevant) on strategic initiatives and
operational matters.

Peter Marriott has indicated that if re-elected at the 2021 AGM it
will be his final term. Mr Marriott stepped down as Chairman of
the Audit and Risk Committee on 18 August 2021 - a role he has
performed since July 2009. The Audit and Risk Committee and
the Board thank Mr Marriott for his leadership of this Committee
during his tenure as Committee Chairman.

The Notice of Annual General Meeting 2021 is available on

ASX’s website at www.asx.com.au/agm

Diversity
ASX’s Board and workforce are comprised of individuals with a
range of skills, backgrounds and experiences. ASX values diversity
and inclusion, and recognises the organisational capabilities and
business performance these bring.

ASX has adopted a diversity and inclusion policy which describes
how ASX promotes diversity. The diversity objectives adopted by
the Board and achievements in FY21 are set out on page 24, along
with further details on ASX’s initiatives to support diversity.

The Board is committed to maintaining the gender diversity of its
membership. The Board has adopted a target of a minimum of 40%
female directors. Currently, 33% of ASX’s directors are female and
37.5% of non-executive directors are female.

ASX also discloses its performance against gender equality indicators
in its Annual Report to the Workplace Gender Equality Agency.

Director election and Board renewal
The Board, in consultation with the Nomination Committee, regularly
reviews its succession plans.

ASX’s diversity and inclusion policy and its latest report to
the Workplace Gender Equality Agency are available on ASX’s
website at www.asx.com.au/about/corporate-governance.htm

Directors are generally elected for a three-year term. Retiring
directors are not automatically re-appointed.

Yasmin Allen, Peter Marriott and Heather Ridout will retire by
rotation in 2021 and will each stand for re-election at the 2021 AGM.
Details of their respective skills and experience are set out on pages
31 and 32, and are also outlined in the Notice of Annual General
Meeting 2021. The Board considers that their combined experience
in financial markets, auditing and public policy complements
and strengthens the Board’s existing skills and experience. The
re-election of Yasmin Allen, Peter Marriott and Heather Ridout is
unanimously supported by all other directors.

Peter Warne retired as a non-executive director in September 2020.
Rick Holliday-Smith retired as ASX Chairman and non-executive
director in April 2021. The Board thanks Mr Warne and Mr Holliday-
Smith for their valuable contributions to ASX during their time
as directors.

Performance assessments
Board and individual directors
Under its Charter, the Board and directors are required to undergo
regular performance reviews. The reviews are conducted to help
ensure the Board continues to operate effectively and efficiently.

The performance of the Board, its Committees and individual
directors are reviewed annually.

In FY21, the performance review process was supported by
confidential surveys completed by both directors and senior
executives. The results of those surveys were discussed in a private
session, led by the ASX Chairman and attended by all other ASX
non-executive directors.

Periodically, the Board engages an external consultant to facilitate
its performance review. The last review facilitated by an external
consultant took place in FY19.

ASX Annual Report 2021 / Corporate governance continued

Corporate governance continued

The Board takes the results of the performance review into
consideration when recommending directors for re-election.

Executives
The CEO and ASX’s Executives have written agreements setting
out their employment terms. The agreements are between ASX
and the Executives personally.

The Board assesses each executive’s performance on an annual
basis. The process for evaluating Executive performance and
remuneration is set out in the Remuneration Report on pages 43
to 60. Performance evaluations for the CEO and ASX’s Executive
took place in FY21 in accordance with the process disclosed in the
Remuneration Report.

Structure the board to be effective and
add value

Board composition
The Board currently comprises nine directors. This includes eight
non-executive directors and one executive director, being the CEO.

The names, qualifications and tenure of each director are provided
on pages 30 to 32.

Director biographies are published on ASX’s website at www2.

asx.com.au/about/our-board-and-management

Chairman
The Chairman of ASX, Damian Roche, is an independent,
non-executive director. Mr Roche was appointed a director in August
2014. He was elected Chairman by the directors with effect from
April 2021.

The Chairman’s role is to lead the Board. His responsibilities
include chairing Board meetings and facilitating open and effective
discussions at those meetings (including with management). The
Chairman also serves as the primary link between the Board and
management. The Chairman’s role and responsibilities are set out
in the Board Charter.

The roles of the Chairman and CEO are separate and are not
performed by the same person. The CEO may not become the
Chairman.

Director skills and experience
ASX is a provider of critical infrastructure to Australia’s financial
markets and has a leading position in the Asia-Pacific region. The
Board is comprised of experienced business leaders with a variety
of professional backgrounds. Many have extensive experience in
financial services.

The Board considers that individually and collectively, the directors
have an appropriate mix of skills, experience and expertise to enable
it to define ASX’s strategic objectives, approve strategies developed
by management and monitor the execution of those strategies.

Skills matrix

Category

Description

Number of non-executive
directors (NEDS) with
these skills

Executive leadership

Successful career as a CEO or senior executive in a large, complex organisation.

Strategy

Experience in defining strategic objectives, constructively questioning business plans and
implementing strategy.

Financial acumen

Qualifications or experience in accounting, financial reporting and corporate finance.
Experience in assessing the quality of internal accounting and financial reporting controls.

Risk and compliance

Forward looking, able to identify the key risks to the organisation. Experience in monitoring
the effectiveness of risk management frameworks and practices.

Public policy

Ability to assess the impact of legal, public and regulatory policy matters on markets and
corporations, and experience in managing such impacts.

Technology and data

Experience overseeing the use and governance of critical information technology infrastructure;
setting, and overseeing the implementation of complex technology strategies (including adoption
of new technologies); commercialisation of data products and provision of technology services.

Business development and
customer management

Commercial and business experience, including development of products and services.
Ability to understand customer needs and trends. Experience implementing changes
to enhance customers’ experience.

People and change
management

Experience overseeing and assessing senior management, remuneration frameworks, strategic
human resource management and organisational change. Experience overseeing
and monitoring corporate culture.

Corporate governance

Knowledge, experience, and commitment to the highest standards of governance.

Financial services

Extensive experience in the financial services industry (for example, broking, funds
management, superannuation, investment banking and/or experience in international
financial markets or exchange groups, including post-trade services).

8/8

6/8

5/8

7/8

8/8

7/8

36 ASX Annual Report 2021 / Corporate governance continued

Corporate governance continued

To guide the assessment of the skills and experience of non-executive
directors and to identify any gaps in the collective skills of the Board,
the Board uses the skills matrix below. This matrix also shows the
Board’s current assessment of its skills coverage.

Conflicts of interest
Directors are required to disclose all interests that may conflict
with their duties. A register of directors’ interests is provided to
the Board at each meeting.

If a director has a material personal interest in a matter being
considered by the Board, they must not be present during the
consideration of that matter or vote on the matter (unless approved
by other directors who do not have a material personal interest in
the matter).

Aligning interests of the Board with
shareholders
To underscore the alignment of the Board with shareholders’
interests, the Board has adopted non-executive director shareholding
guidelines. This requires that all non-executive directors accumulate
ASX shares to the value of the director’s annual base (and in the
case of the ASX Chairman, the base level annual director fee plus
the Chairman fee) within three years of appointment.

All non-executive directors currently meet these guidelines.

Details regarding director remuneration and ASX’s remuneration
policies and practices are detailed in the Remuneration Report on
pages 43 to 60.

Access to information and advice
Directors have unrestricted access to all staff and all relevant records
of the ASX Group they consider necessary to fulfil their obligations
(including access to members of the internal audit function and the
external auditor without management present). They also have
the right to seek explanations and additional information from
management and auditors.

Directors are also entitled, with the approval of the Chairman, to
obtain independent professional advice at ASX’s expense relating
to their role as an ASX director.

Skills matrix
The Board keeps up to date with market and industry developments
through regular briefings at Board and Committee meetings, Board
workshops, meetings with customers and regulators, and site
visits. At Board meetings, the Board is also briefed on material
developments in laws, regulations and accounting standards relevant
to ASX.

The Board periodically reviews whether there is a need for directors
to undertake professional development to maintain the skills and
knowledge required to perform their role effectively. In FY21, the
Board received deep dive presentations from executives on topics
specific to the executives’ respective business function.

Director independence and length of service
The Board requires the majority of its directors to be independent.

ASX recognises that having a majority of independent directors helps
to ensure that the decisions of the Board reflect the best interests
of ASX and its shareholders generally, and that those decisions are
not biased towards the interest of management or any other group.
ASX also considers that having a majority of independent directors
supports the Board to challenge and hold management to account.

In determining whether a director is independent, the Board
considers whether the director is free of interests that could (or
could be perceived to) materially interfere with the independent
exercise of the director’s judgement and the capacity to act in the
best interests of ASX as a whole, rather than of an individual security
holder or other party.

The Board has adopted a policy to assess a director’s independence.
This policy includes guidelines for assessing the materiality of the
director's relationship that may affect their independence.

The Board regularly assesses the independence of its directors,
including by way of an annual, formal assessment. The Board has
assessed each non-executive director as independent.

ASX has not adopted a limit on director tenure. The tenure of
each director is set out on pages 30 to 32. Peter Marriott has
been a director of ASX for more than 12 years. In FY21, the Board
reviewed and determined that his tenure had not impacted on his
independence.

The mix of directors’ tenure is shown in a diagram on page 35.

ASX’s policy and guidelines on relationships affecting

independent status is available on ASX’s website at
www.asx.com.au/about/corporate-governance.htm

ASX Annual Report 2021 / Corporate governance continued

Corporate governance continued

Attendance at meetings
Details of director attendance at Board and Committee meetings in FY21 are set out below. Provided there is no conflict of interest,
directors are also invited to, and frequently attend as observers, meetings of Board Committees of which they are not members. The CEO
is not present for Remuneration Committee discussion on his remuneration.

All directors receive copies of agendas, papers and minutes of committee meetings to help ensure they have equal access to that information
regardless of whether they are appointed to particular committees.

Board
meetings

Attended
/Held
11/11

Audit and Risk
Committee meetings

Nomination
Committee meetings

Remuneration
Committee meetings

CS Boards
(concurrent) meetings

Attended
/Held
1/1

Observed
3/3

Attended
/Held
2/2

Observed
2/2

Attended
/Held
3/3

Observed
2/2

Attended
/Held
11/11

Observed
-

Director name
Damian Roche1
Dominic Stevens

Yasmin Allen

Melinda Conrad

Ken Henry

Peter Marriott

Peter Nash

Heather Ridout

Rob Woods

Retired directors
Rick Holliday-Smith2
Peter Warne3

11/11

10/11

11/11

8/8

1/1

4/4

3/3

4/4

1/1

4/4

2/2

4/4

3/4

4/4

5/5

3/3

1/1

5/5

4/5

5/5

11/11

9/9

11/11

10/11

11/11

Directors on CS Boards (non-ASX)
Carolyn Colley

Stephen Knight

Adrian Todd
1 Appointed to the Audit and Risk, Nomination and Remuneration Committees on 21 April 2021.
2 Retired as a director on 21 April 2021.
3 Retired as an ASX director on 30 September 2020 and as a CS director on 21 April 2021.

Instil a culture of acting lawfully,
ethically and responsibly
ASX is committed to conducting business in an open and accountable
way. We believe that lawful, ethical and responsible business
practices are a driver of shareholder value.

ASX’s values
ASX values are behaviours that guide the actions and decision-
making of staff, and reflect ASX’s brand and culture. The values are
to Be Open, Be Trustworthy, Be Original, Be The Example.

The values were developed collaboratively by management and
endorsed by the ASX Board. Management is responsible for instilling
these values across the ASX Group.

Our values are published on the ASX website at www2.asx.

com.au/about/sustainability/people

Code of Conduct, Whistleblower Policy and
Anti-Bribery and Corruption Policy
ASX has adopted a:

• Code of Conduct underpinned by the ASX values. The Code of
Conduct applies to all directors, employees and contractors.
It sets the standards for how we work at ASX and outlines
the importance of the values to anyone dealing with ASX

• Whistleblower Protection Policy. ASX seeks to identify and
assess any wrongdoing as early as possible. ASX’s values
support a culture that encourages staff to speak up on matters
or conduct that concerns them. This policy provides information
to assist staff to make disclosures and sets out how ASX will
protect them from any form of retaliation or victimisation when
they make a legitimate whistleblowing disclosure

• Anti-Bribery and Corruption Policy. ASX is committed to a high
standard of integrity. This policy states ASX’s requirements for
the management of gifts and benefits.

ASX also has a framework to report material breaches of the Code
of Conduct or the Anti-Bribery and Corruption Policy, or material
incidents reported under the Whistleblower Protection Policy to
the Audit and Risk Committee and/or Board.

Periodic employee training is conducted on the Code and these policies.

ASX’s Code of Conduct, Whistleblower Protection Policy,
and Anti-Bribery and Corruption Policy are published on ASX’s
website at www.asx.com.au/about/corporate-governance.htm

38 ASX Annual Report 2021 / Corporate governance continued

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Securities trading
ASX has adopted Dealing Rules that restrict dealing in ASX and
non-ASX securities. These Dealing Rules apply to directors and all
employees. The Dealing Rules document the procedure for dealing in
securities and are designed to help prevent directors and employees
from contravening laws on insider trading.

Additional dealing restrictions apply to employees working
in specified functions (including Listings Compliance, Market
Announcements and Surveillance functions).

Derivatives and hedging arrangements for unvested ASX securities,
or vested ASX securities subject to a holding lock, are prohibited.

ASX’s Dealing Rules are published on ASX’s website at

www.asx.com.au/about/corporate-governance.htm

Payments to political parties
ASX has a responsibility to its shareholders and stakeholders to
articulate the opportunities and challenges facing its business,
communicate its position on relevant public policy issues and
contribute to well-informed decision-making by government.

ASX actively engages with Government and policy decision-makers
about its role, the investments we are making to build world class
infrastructure, and the dynamic and globally competitive market
environment in which ASX operates.

Similar to previous years, in FY21, ASX paid $110,000 in membership
fees to each of the Liberal Party Australian Business Network and
the Federal Labor Business Forum. ASX's continued membership
was considered by the Board in FY21. ASX’s membership of these
business networks provides an opportunity to engage with a wide
range of policy and decision-makers.

The Board sets the policy regarding payments to political parties,
including limits on the amounts paid. Payments within these limits
are approved by the CEO and the General Counsel. All payments to
political parties are disclosed by ASX.

Safeguard the integrity of
corporate reports
ASX believes that accurate and timely corporate reporting underpins
effective risk management and is key to executing ASX’s strategy.

The Board is responsible for overseeing that appropriate monitoring
and reporting mechanisms are in place. It is supported in this regard
by the Audit and Risk Committee.

The role of the Audit and Risk Committee in safeguarding the
integrity of ASX’s corporate reporting includes reviewing ASX’s
financial reports and the adequacies of the Group’s corporate
reporting processes.

Additional information on the role and responsibilities of the Audit
and Risk Committee, its membership and the number of times the
Committee met in FY21 are detailed on pages 38 to 41.

Integrity of financial reporting
Before it approves the financial statements for the half-year
and full-year, the Board receives a statement from the CEO and
Chief Financial Officer (CFO) consistent with the requirements
of the Corporations Act 2001. These statements are made after
the CEO and CFO receive attestations from executives regarding
their respective areas of responsibility. The Board also receives a
statement from the CEO and Chief Risk Officer (CRO) that ASX’s risk
management and internal control systems are operating effectively
for the management of material business risks.

External auditor
ASX has appointed PricewaterhouseCoopers (PwC) as its external
auditor. The appointment was approved by shareholders at the
2008 AGM. The most recent change of lead audit partner took
place in FY19.

Among its key responsibilities, PwC reviews ASX’s financial reporting
and provides an opinion on whether ASX’s financial report gives a
true and fair view of the ASX Group’s financial position and financial
performance, and whether it complies with Australian Accounting
Standards and the Corporations Regulations 2001. PwC’s opinion
on the FY21 financial report is on pages 102 to 105.

PwC attends each Audit and Risk Committee meeting and meets with
the Committee without management present at least once annually.

PwC has confirmed that there have been no contraventions of the
auditor independence requirements of the Corporations Act 2001
and no contraventions of any applicable code of professional conduct
in relation to its audit (refer to page 63). The fees paid to PwC for
non-audit services are disclosed on page 100.

PwC’s lead partner will attend the 2021 AGM to answer questions
related to the external audit.

Periodic corporate reports
ASX has established a Continuous Disclosure Committee which
makes disclosure decisions, oversees the drafting of announcements
and approves announcements. The Committee members include the
CEO, General Counsel (Committee Chairman), CFO, Chief Compliance
Officer (CCO) and Chief Strategy Officer.

ASX’s Continuous Disclosure Committee approves all ASX
announcements, other than administrative announcements of
the type set out in the Continuous Disclosure Policy. Written
processes are in place for the approval of administrative market
announcements.

Where ASX’s Continuous Disclosure Committee has determined
that information will be publicly disclosed, one or more Committee
members oversee the preparation of that announcement. The
Committee is responsible for satisfying itself that the content of any
announcement is accurate and not misleading, and is supported by
appropriate verification.

ASX Annual Report 2021 / Corporate governance continued

Corporate governance continued

ASX also releases a monthly activity report which includes, among
other things, information regarding listings and capital raisings,
trading volumes and values on ASX’s equity and derivatives markets
in the preceding month. These reports are reviewed by a senior
manager against source documents before being provided for review
and approval by the CFO (or their delegate). The reports are then
released on the market announcements platform by the Company
Secretariat function.

ASX’s Continuous Disclosure Policy is available on ASX’s
website at www.asx.com.au/about/corporate-governance.htm

Make timely and balanced disclosures

Continuous disclosure
ASX is committed to providing shareholders and the market with
equal access to material information about its activities in a timely
and balanced manner. ASX’s Continuous Disclosure Policy sets out
the processes adopted to manage this commitment.

ASX will not disclose market sensitive information (or provide new
and substantive investor or analyst presentations) to any analyst
or investor unless it has first provided that information to the
market and received an acknowledgement that the information
has been released.

ASX uses a number of channels and technologies, including
webcasting and social media, to communicate promptly,
transparently and widely. We encourage shareholders to participate
in shareholder meetings and we deal with shareholder enquiries
fairly and respectfully.

Further information about ASX’s governance practices, including
its Shareholder Communication Policy, is available on ASX’s website
at www.asx.com.au/about/corporate-governance.htm

Investor engagement
ASX has an investor relations program to facilitate effective two-way
communication with the domestic and international investment
community. It involves engagement throughout the year via
both scheduled and ad hoc interactions with shareholders and
potential investors, analysts and proxy advisers. The program
seeks to provide information that is timely, of a high quality and
relevant to shareholders’ investment in ASX. Feedback from
investor engagement, reports prepared by analysts and brokers and
additional relevant information is regularly reviewed and reported
to the Board as appropriate.

ASX does not hold meetings with investors or analysts to discuss
ASX’s financial performance within a blackout period of four weeks
in advance of the half-year and full-year results announcements.

Security holders are given the opportunity to join the live webcast
of ASX’s half-year and full-year results.

Annual General Meeting
Details about ASX’s 2021 AGM are provided on page 111.

ASX provides copies of all material market announcements to
directors promptly after they have been released to the market.

ASX’s Continuous Disclosure Policy is available on ASX’s
website at www.asx.com.au/about/corporate-governance.htm

Respect the rights of security holders

Shareholder engagement and provision
of information
ASX provides information about the ASX Group and its governance
practices on its website, including this Corporate Governance
Statement (and Appendix 4G), ASX’s Constitution, Board and
Committee Charters and key governance policies, as well as the
qualifications, skills and backgrounds of its directors and senior
executives. ASX also makes available on its website copies of its
Annual Reports, market announcements, notices of meeting, and
copies of presentations delivered to investors or analysts.

ASX has a section of the website dedicated to ASX’s Corporate
Governance, which can be found via the navigation menu About
Us at the bottom of the home page.

The AGM is an opportunity for shareholders to hear from and to
put questions to the Board and external auditor.

Detailed information about how shareholders can participate in
the 2021 AGM is set out in the Notice of Annual General Meeting
published on our website.

Shareholders are able to submit written questions to ASX in advance
of the meeting. Details about how to do so are contained within
the Notice of Meeting. These questions and comments are typically
addressed at the meeting through the Chairman or CEO speeches.

All resolutions put to the AGM are decided by way of a poll. This is
to support the principle of ‘one share, one vote’.

Shareholder communications
ASX encourages shareholders to receive communications
electronically. Electronic communication allows ASX to communicate
with shareholders quickly and reduces ASX’s paper usage. ASX
emails shareholders when important information becomes available
such as financial results, dividend statements, notice of meetings,
voting forms and Annual Reports.

ASX is committed to communicating promptly, accurately and in
plain language with shareholders. This commitment is detailed in
ASX’s Shareholder Communication Policy.

Shareholders who receive postal communications from ASX can log
into www.linkmarketservices.com.au to provide their email address
and elect to receive communications electronically.

All market announcements (including financial results and Annual
Reports) are published on ASX’s website after they have been
released on the market announcements platform. ASX also publishes
media releases and other relevant information on its website.

40 ASX Annual Report 2021 / Corporate governance continued

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Recognise and manage risk
The Board recognises that effective risk management is critical to
maintaining ASX’s reputation.

Division of responsibilities
The Board's responsibilities regarding risk management include:

• Setting ASX’s risk strategy and risk appetite

• Overseeing systems of risk management and internal control

and compliance

• Overseeing process for identifying significant risks facing ASX

• Satisfying itself that appropriate controls, monitoring and

reporting mechanisms are in place.

Management executes the Board-approved strategy and manages
ASX’s operations within the Board-approved risk appetite.
Management is responsible for identifying, monitoring, mitigating
and reporting on risks.

Audit and Risk Committee
As outlined above, the Board has established an Audit and Risk
Committee. The Audit and Risk Committee reports to the ASX
Board. Its role and responsibilities are set out in its Charter. The
Committee’s responsibilities include:

• Reviewing the enterprise risk management framework

• Overseeing the process for identifying significant risks facing ASX

• Reviewing and overseeing risk management processes, internal

controls and compliance systems.

The Audit and Risk Committee receives regular reports from the
CFO on financial matters, the CRO on enterprise risks, the Chief
Customer and Operations Officer and Group Executive, Technology
and Data and Chief Information Officer on operational, technology
and cyber security risks, the Chief Compliance Officer on compliance
matters, as well as well as reports from ASX’s Internal Auditor and
Enterprise Compliance function and from ASX’s external auditor.

In addition to the responsibilities above, the Audit and Risk
Committee has a role in safeguarding the integrity of ASX’s corporate
reporting. Further details about that role are set out on page 39.

Peter Marriott was the Committee Chairman throughout FY21.
He stepped down from this role on 18 August 2021 and is succeeded
by Peter Nash. Peter Marriott remains a Committee member.
Damian Roche, Yasmin Allen, Ken Henry and Rob Woods are also
Committee members.

The number of times the Committee met during FY21 and the
individual attendance of its members and other directors at those
meetings are detailed on page 38.

The Audit and Risk Committee Charter is available on ASX’s
website at www.asx.com.au/about/corporate-governance.htm

Risk management framework
ASX has an established enterprise risk management framework.
The framework encompasses the risk governance structure across
ASX, the risk strategy and appetite, risk culture and behaviour
expectations, and supporting framework and processes governing
risk assessment, monitoring and reporting.

ASX’s risk management function has day-to-day responsibility for
the implementation of the risk management framework.

The Audit and Risk Committee receives reports in respect of,
and reviews components of, ASX’s enterprise risk management
framework on a regular and ongoing basis. In FY21, this included
a review of ASX’s risk appetite statement, a fraud risk assessment,
the Cyber Security Strategy and the Business Continuity
Management Framework.

Management committees
ASX has established the following internal management committees
comprised of senior executives to assist with the oversight and
management of risks:

• Risk Committee chaired by the CRO. The Risk Committee
has oversight of the implementation of ASX’s enterprise
risk management framework, approves risk policies and
considers general risk matters consistent with the ASX
Board’s risk appetite

• Regulatory Committee chaired by the Group General Counsel.
The Regulatory Committee has oversight of licence compliance
matters, develops and approves policies, and considers
updates on regulatory and government engagement,
and on ASX rule changes

• Technology Operations and Security Committee (TOSC) the

TOSC has oversight of IT security matters, systems updates and
incident management, and considers emerging technology,
operational and security risks.

ASX has also established a Portfolio Governance Group (PGG)
comprised of senior executives (and chaired by the CFO). The PGG has
oversight of the status of ASX's portfolio of projects, and considers
risks and issues arising in relation to those projects.

Internal audit
ASX’s Internal Audit function reviews and reports on internal control
systems and procedures. Its role and responsibilities are set out
in its Charter.

The General Manager, Internal Audit reports to the Chairman of the
Audit and Risk Committee for functional audit purposes, and to the
CRO for administrative purposes. The Audit and Risk Committee
determines the Internal Audit’s scope, function and budget each year.

Internal Audit has full access to the Audit and Risk Committee. It also
has unrestricted access to all ASX records, property and personnel.
The Internal Audit function is independent of ASX’s external auditor.

ASX’s Internal Audit Charter is published on its website at

www.asx.com.au/about/corporate-governance.htm

ASX Annual Report 2021 / Corporate governance continued

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Enterprise compliance
ASX’s Enterprise Compliance function maps the compliance
frameworks for ASX’s regulatory obligations, oversees ASX’s
conflict handling arrangements, and provides training to the
business to ensure key Australian and international obligations
are understood and complied with. It also undertakes compliance
reviews and reporting to regulators. The General Manager of
Enterprise Compliance has a direct reporting line to the Audit and
Risk Committee Chairman and is entitled to appear and be heard
at all board meetings of ASX’s Clearing and Settlement (CS) Boards.

Exposure to environmental and social risks
Information on ASX’s material business risks and how these are
managed are provided on pages 9 to 18 in the Operating and
Financial Review.

Remunerate fairly and responsibly
ASX aims to attract and retain high quality directors and to attract,
motivate and retain high quality senior executives.

The Board oversees executive remuneration and non-executive
director remuneration arrangements. It has established a
Remuneration Committee to assist it in this regard.

The Remuneration Committee helps to bring the focus and
independent judgment needed for remuneration decisions.

The Remuneration Committee’s responsibilities are set out in its
Charter. These include reviewing and making recommendations
(or reporting) to the Board on:

• The remuneration policy and remuneration framework

(including incentive arrangements) for ASX staff

ASX’s environmental and social sustainability risks, and how these
are managed (including ASX’s assessment of its exposure to climate
change risks), are provided on pages 19 to 29 in the Sustainability
Report.

• Compliance of remuneration arrangements with the Financial

Stability Standards and other regulatory requirements

• Incentives and behaviours arising from ASX’s remuneration

Clearing and Settlement Boards
ASX has four subsidiary companies that hold licences to operate
clearing and settlement facilities and two intermediate holding
companies.

The CS Boards focus on risk management and oversight of the
operation of the clearing and settlement licences. The responsibilities
of these boards include the management of clearing and settlement
risk and compliance with the Financial Stability Standards
determined by the RBA. Details of the CS Boards’ responsibilities,
functions and governance are set out in the CS Boards Charter.

The Audit and Risk Committee serves as the audit and risk committee
for the CS Boards where such matters relate to clearing and
settlement operations outside of those matters carried out by the
CS Boards, and which are ASX Group enterprise-wide in nature (and
detailed in the CS Boards Charter).

The CS Boards Charter is available on ASX’s website at

www.asx.com.au/about/corporate-governance.htm

framework

• The performance of senior executives

• Recruitment and retention strategies as well as succession

plans and development programs

• Remuneration by gender

• Remuneration framework for non-executive directors.

The Remuneration Committee Charter is available on ASX’s
website at www.asx.com.au/about/corporate-governance.htm

The Remuneration Committee is currently comprised of three
independent, non-executive directors. Heather Ridout is the
Committee Chair. Damian Roche and Melinda Conrad are also
Committee members.

It is a requirement under the Remuneration Committee Charter
that the Committee Chair be an independent director who is not
the Chairman of the ASX Board.

Under its Charter, the Remuneration Committee has unrestricted
access to all staff and relevant records of the ASX Group it considers
necessary to fulfil its obligations. It also has the right to seek
explanations and additional information from management and
auditors. The Committee Chair may directly seek independent
professional advice at ASX’s expense as required for the Committee
to fulfil its responsibilities.

The number of times the Committee met during FY21 and the
individual attendance of its members at those meetings are disclosed
on page 38.

Details of executive and director remuneration and ASX’s
remuneration policies are disclosed in the Remuneration Report
on pages 43 to 60.

42 ASX Annual Report 2021 / Corporate governance continued

REMUNERATION
REPORT

Dear fellow shareholders,

On behalf of the Board, I am pleased to present the Remuneration
Report for the 2021 financial year (FY21).

We are proud to play a vital role in Australia’s financial markets and
the broader economy. With this role comes a great responsibility to
provide our customers with highly functional, resilient and reliable
market infrastructure and services. We deliver this through world-
leading technology.

Navigating through uncertainty
Against the backdrop of a challenging and uncertain global pandemic,
ASX continued to focus on the health, safety and overall wellbeing of
our people. We introduced additional work flexibility for employees
and launched an online hybrid working resources hub to help their
resilience and adaptability. As hybrid teams became the norm, we
ensured our leaders had the right training to manage effectively.
An independent review of our handling of the pandemic by Deloitte
rated many of ASX's initiatives as best practice.

Our staff deserve the best we can offer. Their effort throughout a
testing FY21 was exemplary.

Strengthening alignment of
performance and reward
Our reward programs focus employees on executing ASX’s strategy
and generating long-term value for our shareholders and other
stakeholders. ASX introduced a new remuneration policy in FY21
to support this goal.

The new policy clarifies the purpose of the Short-Term Variable
Reward (STVR) Plan. We expect our people to achieve high standards
and meeting those expectations typically results in a short-term
variable reward around the target outcome. Achievement above
or below the challenging performance expectations will result in a
higher or lower reward, respectively. This is distinct from an incentive
or bonus. By benchmarking our employees’ total target reward to
the market, we ensure we provide competitive remuneration for
those who meet ASX’s high expectations.

In addition, we introduced a new consequence management
framework in FY21 to support ASX’s risk culture. This framework
reinforces the expected standards of behaviour and the actions ASX
may take in the event of a breach of those standards.

We believe these enhancements ensure our executive remuneration
outcomes are aligned and attuned to the experience of our
customers, the expectations of our shareholders and regulators,
and the financial performance of the Group.

ASX Annual Report 2021 / Remuneration report

Remuneration report continued

Short-term performance and reward
ASX’s financial performance in FY21 was sound given the mixed
market conditions. The result demonstrated the benefit of the
diversified businesses of the Group.

Long-term performance
The performance rights granted under the Long-Term Variable
Reward (LTVR) Plan are measured against underlying earnings
per share (EPS) and relative total shareholder return (TSR) targets.

ASX's operating revenue was up 1.4% to $951.5 million. Total
expenses grew by 8.4%, in line with the guidance provided in
February 2021. Statutory net profit after tax (NPAT) was 3.6% lower
than FY20 at $480.9 million. This was driven by the impact of the
Reserve Bank's current policy settings on our futures volumes and
interest income. This is the first decline in NPAT in nine years. Detail
about ASX’s financial performance is available in the Operating and
Financial Review on pages 9 to 18 of this report.

In FY21, the LTVR granted in FY17 was tested. ASX’s relative TSR
was in the 90th percentile of the peer group for the four years to 29
September 2020. Therefore the TSR-related portion of this award
vested in full. ASX's underlying EPS compound annual growth
rate was 4.75% for the four years to 30 June 2020. This is below
the threshold of 5.10% required for vesting. The EPS portion of the
LTVR subsequently lapsed. Further details of the LTVR Plan can be
found in section 4.5 of this Remuneration Report.

Your Board was impressed with how well ASX’s people navigated
the challenges of COVID-19 throughout FY21. This was done while
delivering a high standard of customer support and successfully
progressing ASX’s strategy. The Board thanks our people for their
achievements.

ASX remains committed to delivering long-term sustainable value
for all our stakeholders.

Thank you for your support.

Heather Ridout
Chair, Remuneration Committee

From a strategic perspective, FY21 saw a number of initiatives that
help make business easier for our customers. These include the
efficiencies flowing from the corporate actions straight-through
processing service; launch of the 5-year treasury bond futures
contract; and new functionality to manage bond and repo positions
in Austraclear. We also enhanced our attractiveness as a place to
list and raise capital, with $102.5 billion in new and secondary
capital raised by companies and other issuers, the highest amount
in over a decade.

ASX continues to invest in world-leading technology, including
our major project to replace CHESS with a new system powered
by distributed ledger technology (DLT). Following extensive
consultation, the scale and scope of the project were increased
and the testing phase extended, resulting in a new go-live date of
April 2023. The project is now under new leadership and the Board is
pleased with the progress. Once the rollout of the new DLT-enabled
CHESS system is complete, ASX and users of Australia’s financial
markets will have a contemporary, world-leading, end-to-end cash
equities platform.

The Board firmly believes that investing in technology will serve
the ASX, the market and our stakeholders well into the future. We
have already seen some benefit, with the six-month average for
customer-facing technology and operational incidents falling by
around 87% over the last five years.

Nevertheless, there were some disappointing experiences for our
customers and other stakeholders in FY21. We are sorry for the
disruption caused by the market outage in November 2020, and
we are working hard to rebuild your trust. In consultation with
our regulatory agencies, we commissioned an independent expert
to review the incident. We will incorporate the insights from this
review into our own program of improvement over the next 12 to
18 months, and we have put in place a new organisational structure
that will support greater accountability.

The Board has taken account of the market outage in the variable
reward outcomes provided to Executives this year. The STVR pool
for the entire Executive Committee was reduced to 80% of target,
which is the lowest pool since the current STVR scheme was put
in place. The Board believes this outcome appropriately balances
ASX’s strong operational performance, solid financial outcomes and
the disruptive impact of the market outage. In addition, Executives
directly accountable for the outage had their STVR for FY21 further
reduced to between 40% and 80% of target. Other leaders who
shared accountability for the outage also had their remuneration
adjusted downward.

44 ASX Annual Report 2021 / Remuneration report continued

Remuneration report continued

Contents

1. Key Management Personnel covered in this report

2. Glossary of key terms

3. Snapshot of FY21 Group performance and reward

4. Executive remuneration framework

5. Remuneration governance

6. Statutory remuneration disclosure – Executives

7. Non-executive director remuneration arrangements

1. Key Management Personnel covered in this report
This Remuneration Report details the performance and remuneration of Key Management Personnel (KMP) for FY21. KMP is defined
as persons having authority and responsibility for planning, directing and controlling the activities of an entity, directly or indirectly.
The KMP comprises:

• Non-executive directors of ASX Limited

• The CEO and members of the executive team who are accountable for managing critical business activities, financial control or risk

functions (collectively termed Executives).

Name

Non-executive directors
D Roche

Y A Allen

M B Conrad

K R Henry

P R Marriott

P S Nash

H M Ridout

R J Woods

Former non-executive directors
R Holliday-Smith

P H Warne

Executives
D J Stevens

P D Hiom

G L Larkins

H J Treleaven

Part-year KMP

T J Hogben

2. Glossary of key terms

Role

Term as KMP

Non-executive director

Chairman

Non-executive director

Managing Director and Chief Executive Officer (CEO)

Deputy Chief Executive Officer (Deputy CEO)

Chief Financial Officer

Chief Risk Officer

Chief Operating Officer

Commenced as Chairman 21 April 2021

Full year

Ceased 21 April 2021

Ceased 30 September 2020

Full year

KMP until change of role on 2
November 2020

Term

EPS

Meaning
Earnings per share, defined as the underlying net profit after tax divided by the weighted average number of issued shares during the
year. The LTVR Plan has two performance measures, one of which is EPS.

Executives

The CEO, Deputy CEO, Chief Financial Officer and Chief Risk Officer.

KMP

TSR

Key Management Personnel are those people with authority and responsibility for planning, directing and controlling the activities of
the entity, directly or indirectly. KMP comprises non-executive directors, as well as Executives as defined above.

Relative total shareholder return, defined as share price growth plus dividends paid over the measurement period compared to peers.
Dividends are assumed to be reinvested on the ex-dividend date. The LTVR Plan has two performance measures, one of which is TSR.

ASX Annual Report 2021 / Remuneration report continued

Remuneration report continued

3. Snapshot of FY21 Group performance and reward
3.1 Remuneration received or available in the financial year
This section provides a snapshot of the performance of the Group and the corresponding remuneration outcomes. The remuneration
illustrated in section 3.1 has been provided as additional non-statutory information to assist in understanding the total value of remuneration
received by Executives in the current and prior financial years. The value of equity in this section is calculated in a different way to the
statutory disclosure in section 6 on page 57.

Previous year awards that
vested during the year

Current

D J Stevens
CEO

P D Hiom6
Deputy CEO

G L Larkins
Chief Financial Officer

H J Treleaven
Chief Risk Officer

Part-year
T J Hogben7
Chief Operating Officer
Total

Fixed
remuneration1
a

Other
remuneration2
b

Year

STVR
awarded3
c

Total

d=a+b+c

Deferred STVR
vested4
e

LTVR
vested5
f

Total
remuneration

g=d+e+f

2021
2020

2,000,000
2,000,000

1,004,410
1,000,000

800,000
800,000
875,000
875,000

248,173
725,000
4,927,583
5,400,000

1,928
1,999

387,338
1,999
616,990
380,447
1,928
101,999

640,000
840,000

400,000
380,000
256,000
320,000
96,000
132,000

657
1,999
1,008,841
488,443

75,190
231,000
1,467,190
1,903,000

2,641,928
2,841,999

1,791,748
1,381,999
1,672,990
1,500,447
972,928
1,108,999

324,020
957,999

7,403,614
7,791,443

786,710
789,693

920,273
431,489
-
-
130,171
43,434

878,945
-

439,473
531,555

-
-

4,307,583
3,631,692

3,151,494
2,345,043
1,672,990
1,500,447
1,103,099
1,152,433

363,098
204,021
2,200,252
1,468,637

-
-
1,318,418
531,555

687,118
1,162,020
10,922,284
9,791,635

1 Base salary, superannuation, non-monetary benefits and benefits that have been salary sacrificed such as participation in the Employee Share Plan.
2 Salary continuance insurance for all Executives. Benefits to specific Executives include:
– Peter Hiom: other remuneration includes a payment in lieu of notice applicable under his employment contract
– Gillian Larkins: a tranche of deferred equity vested on 1 September 2020. The value has been calculated using the total number of shares vested and the

five-day volume weighted average price of ASX ordinary shares up to and including the vesting date

– Hamish Treleaven: deferred cash payments were made in FY20 in connection to the commencement of his employment, which were subject to his service and

sufficient performance standards being met.

³ The portion of STVR awarded for the current financial year in cash. The remaining portion of STVR in respect of FY21 but deferred for two and four years, is

shown in table 6.1.

4 The value of deferred STVR awarded in prior years as restricted ASX ordinary shares that vested in the current financial year. The value disclosed is based on the

five-day volume weighted average price of ASX ordinary shares up to and including the vesting date.

5 The value of LTVR vested, calculated using the total number of rights vested, multiplied by the five-day volume weighted average price of ASX ordinary shares up

to and including the vesting date.

6 Peter Hiom ceased employment on 1 July 2021. Termination benefits do not exceed the threshold requiring shareholder approval under the Corporations Act.

Further details are provided in section 6.7. All remuneration earned between 1 July 2020 and Mr Hiom’s cessation date of 1 July 2021 is fully disclosed within the
FY21 Remuneration Report.

7 The fixed remuneration, other remuneration and STVR awarded shown for Tim Hogben is pro-rated based on his service in a KMP role up to 2 November 2020

The value of deferred STVR vested is the full value of awards that vested in the financial year.

3.2 FY21 Group performance
The Board assesses the performance of the Group against ASX’s financial performance, the achievement of our Vision, Strategy and
Execution goals, the Group Scorecard and the management of risk. This assessment informs the Board’s determination of the Group
reward pool, which limits the total value of STVR payments available. The Board assigns a material weight to non-financial measures in
setting goals and assessing performance. The Board considers three goal categories.

• The FY21 financial results, which may have a positive or negative impact on reward outcomes depending on performance.

• The Vision, Strategy and Execution goals, which relate to the delivery of key strategic priorities that drive future value for ASX and its

stakeholders. Depending on performance, these goals may have a positive or negative impact on reward outcomes.

• The Group Scorecard, which represents operational standards for ASX. If these targets are not met, this may reduce reward

outcomes.

The Board believes ASX has a robust remuneration governance framework in place, which supports the exercise of discretion to ensure
variable remuneration outcomes are appropriate. In determining variable reward outcomes, the Board seeks performance input from the
Chief Risk Officer, the Audit and Risk Committee, and Clearing and Settlement Boards. Remuneration outcomes are presented and further
discussed with these groups. The Board considers the Group reward pool of 80% appropriately reflects the underlying performance of
the Group in FY21.

46 ASX Annual Report 2021 / Remuneration report continued

Remuneration report continued

The following tables summarise the Group’s FY21 performance.

FY21 financial results

Measure

Outcome

Operating revenue

$951.5 million, up 1.4% on FY20

Performance
against expectations

Not met

Met

Exceeded

Total expenses

8.4% growth, in line with guidance due to increases in variable costs associated
with increased activity

Statutory net profit after tax
(NPAT)

$480.9 million, down 3.6% on FY20. This result was impacted by weak short-term
interest rate futures volumes associated with yield curve control, and a decline in
net interest income due to low short-term interest rates

Underlying net profit after tax
(NPAT)

$480.9 million, down 6.4% on FY20

Earnings per share (EPS)

248.4 cents, down 3.6% on FY20

Dividends per share (DPS)

223.6 cents, fully franked, down 6.4% on FY20. Payout ratio 90%

Capital expenditure (capex)

$109.8 million, in line with guidance

Vision, Strategy and Execution

Performance
against expectations

Measure

Target

Outcome

Not met

Met

Exceeded

Risk and compliance culture survey scores
steady at between 89% and 92% in the
broad categories of leadership, awareness
and speaking up. Enterprise Compliance
framework uplift executed to plan over
the year.

Modernisation of cash equity trade platform
has achieved efficiency and customer
functionality goals. These aspects met
expectations, however the implementation
resulted in a market outage, creating
disruption for our customers.

Key technology assets refreshed to
plans. Austraclear market repo module
and corporate action straight-through
processing providing positive
customer benefits.

New sustainability ambitions developed
and reporting enhanced. See Sustainability
section of Annual Report for details.

Enduring trust, integrity and resilience

Strengthen risk and
compliance ownership,
awareness, accountability
and speaking up

Positive risk leadership, awareness
and speaking up scores.

Uplift enterprise compliance
framework.

Deliver resilient, efficient
markets to meet evolving
customer needs

Implement ASX Trade platform
refresh to increase capacity; improve
platform performance, stability
and resilience; and deliver broad
automated testing.

Innovative solutions and technology

Refresh aged assets including:
• Enhancement of IT service
management software

• Move the Hubble system into

production

• Deliver corporate action

straight-through processing
• Deliver enhanced Austraclear

market repo module.

Set ASX’s medium-term
sustainability ambitions.

Enhance reporting practices.

Deliver contemporary
technology and processes to
improve customer experience

Evolve sustainability approach

Customer-focused

Progress CHESS replacement
project

Deliver key derivatives market
structure and product changes
to meet evolving customer needs

Diverse ecosystem

Refreshed project milestones
delivered to agreed budget,
timelines, and business and
regulatory requirements.

Deliver enhancements to cash
settled bank bill futures, bond roll
tick changes, 5-year bond futures
and cap futures.

Key milestones in refreshed CHESS
replacement project plan delivered.

All projects delivered to plan, with
customer benefits realised and, where
appropriate, revenue targets achieved.

Launch DataSphere commercial
enterprise

Launch of DataSphere. Incorporation
of new products and data partners.

Diversified listings strategy
to expand the investment
ecosystem and attract foreign
and technology listings

Attract foreign and technology
listings.

DataSphere was successfully launched
in September 2020. Services have been
expanded in the financial year and
partnerships have progressed.

In FY21, 61 new technology and foreign
company listings, 51 new products and
151 advisers joined the ecosystem.

ASX Annual Report 2021 / Remuneration report continued

Remuneration report continued

Collaborative culture

Deliver an enhanced employee
experience in response to a
return to ASX offices

Employee health and safety;
business continuity; resilience
and reliability; and employee
engagement.

Positive recognition of ASX management
of COVID-19 and return to office from
external advisers. Business continuity
upheld throughout transition. Uplift in
workplace technology to support mixed
mode working productively. Engagement
increased 7%, with 98% support for ASX’s
response to the pandemic.

Group scorecard

Measure

Risk management and
regulatory focus

Operational excellence

Leadership and culture

Target

Outcome

Not met

Met

Exceeded

Performance
against expectations

Deliver on all regulatory
requirements and achieve high
standards of regulatory engagement.

Positive engagement with regulators
and feedback received of high standards
of regulatory engagement.

No major issues for each of the
six core market, and clearing and
settlement licences.

No Severity 1 operational or
technical incidents across the
ASX business.

No significant issues in service
delivery, meet uptime targets
across the five key trading, clearing
and settlement systems and
minimal uptime issues across
all 26 key systems.

Progress toward diversity target:
40% of management roles held
by females.

Employee engagement as determined
by employee engagement survey.

Appropriate succession planning.

No significant regulatory breaches (legal,
compliance, finance, tax or operations).

CHESS replacement project timeline
re-planned, resulting in increased
regulatory oversight.

ASX Trade uptime around 99.72% due
to November equity market outage.

All other key trading, clearing and
settlement systems have been
available 100% of the time.

Positive trend of declining incidents per
unit of change continued in FY21.

39% of all leadership roles performed by
females, slightly below target.

Engagement 3% higher than Australian
benchmark.

Appropriate succession planning in place
for all key roles.

3.3 FY21 Executive STVR outcomes
The STVR for Executives is based on a combination of the Group’s performance (the Group reward pool) and an individual’s performance.
Subject to the Group reward pool, Executives may typically receive an STVR payment around their target opportunity where they have
achieved their goals. An Executive's goals are drawn from the Vision, Strategy and Execution goals, the Group Scorecard and individual
goals based on the accountabilities of that Executive’s role. The ASX values and risk management are also explicitly considered when
evaluating an Executive's performance, as they guide the way Executives behave in achieving their goals and how they manage risk.

Total STVR awarded1,2

1,600,000

400,000

187,974

640,000

80.0%

40.0%

105.0%

80.0%

Current
D J Stevens

P D Hiom4

T J Hogben5

G L Larkins

Cash payment paid
August 2021

STVR deferred
for 2 years (vesting
August 2023)3

STVR deferred
for 4 years (vesting
August 2025)3

640,000

400,000

75,190

256,000

480,000

56,392

192,000

480,000

56,392

192,000

H J Treleaven
1 Total STVR award including cash payment and deferred component.
2 The STVR forfeited is determined by subtracting the ‘total STVR awarded %’ from the maximum potential STVR of 150% of target. The average STVR forfeited by

240,000

96,000

72,000

80.0%

Executives in FY21 was 73% of the maximum potential STVR (compared to 46% of the maximum potential STVR in 2020).
3 The deferred STVR awards are subject to continued employment and satisfactory performance over the deferral period.
4 The STVR for Peter Hiom was provided in cash. Mr Hiom was ineligible to receive deferred STVR due to his exit.
5 STVR for Tim Hogben is pro-rated for his period of service as a KMP within the financial year.

48 ASX Annual Report 2021 / Remuneration report continued

Remuneration report continued

3.4. Long-term performance
ASX's long-term performance can be measured by our progress to achieve our vision to be the world's most respected financial marketplace.
This means being respected by analysts and investors, customers, staff, government, regulators, media and peer markets.

The strategy to achieve our vision involves five interdependent elements. There has been significant progress in each of these areas.
A summary of some significant achievements over the longer term is provided in the following table:

Outcomes for customers and stakeholders Achievements

Customer

centric

Enduring trust,

integrity and resilience

Innovative solutions
and technology

Diverse
ecosystem

Diverse ecosystem

Collaborative
culture

We are continuing to build diverse
ecosystems to improve the service
offering to our customers and the
resilience of our business model.

Creating a diverse ecosystem is
about more than products and
services. It is also about providing
an open system of collaboration
and partnerships with benefits
across the entire system.

• Expanded and diversified the Australian Liquidity Centre (ALC)

ALC customers and connections

ecosystem.

• Over the past five years:

- ALC customers have increased by 29%

- ALC connections have increased by 43%.

• 59% of new organisations joining the ALC during this period
were non-trading clients, demonstrating the value of the ALC
ecosystem to both ASX and the entire financial services industry.

819

108

871

116

984

123

1068

1078

1170

134

137

139

FY16

FY17
ALC customers

FY18

FY19
ALC connections

FY20 FY21

• We diversified our listings ecosystem through attracting foreign
and technology listings. Over the past five years, 251 technology
and foreign companies have listed on ASX.

Cumulative new foreign and technology
listings FY17 to FY211

• ASX’s technology listings strategy has been supported by
the launch of the S&P/ASX All Technology Index. Covering
79 companies, the index gives better insights into the
sector, has enabled easier and more transparent exchange-
traded funds and index-based investing.

83
FY19

FY18

34
10
33
FY17

120

FY20

FY21

Other foreign based listings
Foreign based technology listings
Domestic based technology listings

1Technology listings measured using
S&P/ASX All Technology Index GICS,
companies deemed ‘Fintech’ or
predominantly technology enabled.

Customer
centric

Enduring trust,
Innovative solutions
Diverse
Enduring trust, integrity and resilience
and technology
integrity and resilience
ecosystem
Our focus on enduring trust, integrity
and resilience is fundamental to
our core offering, our brand value
and our licence to operate in the
Australian market.

Our work in this area contributes to
us operating a resilient, fair and open
marketplace, especially in the face of
volatility and under market pressure.
These demonstrated capabilities have
enhanced the open, respectful and
constructive relationship ASX has
with its regulators.

• Delivered an 87% decline in incidents over past five years,

reflecting the:

- Execution of multi-year Building Stronger Foundations

Index of incidents that have a customer
impact on a rolling six-month basis
(December 2016 = 100)

initiatives
Collaborative
culture

- Increased investment in infrastructure and expertise

100

- Technology contemporisation.

• Improvement achieved at the same time as:

- A significant increase in our technology change program

- An increase in our technology footprint.

• Averaged 99.98% uptime across all five key trading, clearing

and settlement systems between 1 July 2017 and 30 June 2021.
• Significant fall in outages from these five key systems, with no
outages for over two years prior to the ASX Trade outage in
November 2020.

• ASX continually strives for improvement including actions

taken following November 2020 outage.

Dec-16 Dec-17

Dec-18

Dec-19 Dec-20

Number of outages on a rolling
two-year basis – ASX five key trading,
clearing and settlement systems1

Jun-12 Jun-14 Jun-16 Jun-18 Jun-20

1 ASX Trade, CHESS, Austraclear, NTP/
SYCOM and Genium clearing.

ASX Annual Report 2021 / Remuneration report continued

Remuneration report continued

Customer

centric

Enduring trust,
integrity and resilience

Collaborative
culture

Innovative solutions and technology
Innovative solutions
Diverse
and technology
ecosystem
Embracing innovation and being open
to change supports ASX’s position as
a leading global market, earning the
respect of our stakeholders and peer
markets.

Our capability to innovate, to make
life easier for customers and to help
companies grow, creates value for
shareholders and advances the
Australian economy.

Market capitalisation of ASX-listed
exchange traded products ($bn)

113.7

65.8

50.9

39.2

29.5

FY17

FY18

FY19

FY20 FY21

22.5

35
FY16

• Facilitated a range of innovative new investment products,

reducing costs for issuers and increasing choice and flexibility
for investors:

- Hybrid fund structure where the underlying trust can issue

both closed and open ended units

- Dual access structure where investors have the option of
transferring from the register of an unlisted to a listed
equivalent and vice versa.

• These innovative solutions have contributed to the growth
of ASX’s exchange traded products (ETP). Over the past five
years the market capitalisation of ASX-listed ETPs has
increased by 406%.

• On track to replace the CHESS platform by early 2023 with

world-leading blockchain technology:

- 100% of functional technical specifications completed

and delivered to market

- 10 of 11 software drops to customer development

environment

- 25 software providers active in development environment.

• Significant work with prime banks, regulators and bank bill

BBSW benchmark initiative

Customer
Customer-focused
centric

Enduring trust,
integrity and resilience

Innovative solutions
and technology

ASX promotes customer-focused
thinking across the whole of ASX.
Companies and other issuers of capital
from Australia and around the world
engage with ASX to manage risk and
raise capital to sustain and grow their
businesses. Our customers value
ASX’s operating strength, resilience
and dependability. Having a reliable,
well-capitalised and trusted company
at the heart of Australia’s financial
markets has never been more important.

Customer

centric

Enduring trust,

Innovative solutions

integrity and resilience

and technology

Diverse
ecosystem

Collaborative
Collaborative culture
culture

The way we treat our employees drives
engagement and alignment between
our people and ASX, ultimately allowing
us to attract and retain great people.
Our people deliver the innovation,
proactive risk management and
customer-focused thinking that
drives our company forward.

investors to enhance the BBSW benchmark methodology, adding
robustness and longevity to the reference rate and enabling its
continued use.

Diverse
ecosystem

Collaborative
culture

• The industry cost savings to the local financial industry from not
having to re-paper every BBSW-based swap, loan, investment or
financial product is estimated to be in the hundreds of millions.

>$340m

Estimated industry cost savings1

1 ASX estimate based on Oliver Wyman’s
March 2020 estimated cost to re-document
LIBOR swaps.

• Worked expeditiously with regulators and equity capital market
participants on capital raising flexibility to help support listed
companies and enable rapid recapitalisations. This initiative
contributed to the highest amount of capital raised on ASX
markets in over a decade.

Total capital raised on ASX ($bn)

97.2

102.5

78.6

81.7

86.0

56.0

FY16

FY17
FY18
Secondary capital raised
Initial capital raised

FY19

FY20 FY21

• Launched new employee values and embedded these in

the organisation.

Increase in employee engagement and
risk culture scores

• Increased employee engagement by 7% during the past

three years, being the period the current survey has operated.
Our risk culture has also improved 11% in the four years
of the current survey.

• Since 2016, ASX has increased the number of its employee

networking groups fivefold in order to celebrate our people’s
culture and heritage, support LGBTIQ+ employees, and
encourage community participation and giving.

• Named Employer of Choice for Gender Equality (2020-22).

ASX’s inclusion, for the ninth time, recognises our commitment
to gender equality in areas such as flexibility, parental leave,
women in leadership and pay.

+7%

Employee engagement

+11%

Risk culture

Employer of Choice for Gender Equality
for ninth time

50 ASX Annual Report 2021 / Remuneration report continued

Remuneration report continued

Through the continued execution of our customer-focused, technology-driven strategy, we are working towards the ongoing delivery of
attractive returns to shareholders over time. The following charts illustrate the long-term performance of the Group against key financial metrics

Statutory net profit after tax ($million)
and STVR outcome (% of target)
for Executives

109%

104%

99%

92%

77%

Underlying earnings per share (cents)

Dividends per share (cents) and
share price ($ at end of financial year)

82.37

85.38

77.71

64.39

53.61

129.1

492.0

498.6

480.9

445.1

434.1

224.5

240.4

254.1

265.4

248.4

99.8

109.1

114.3

122.5

111.2

102.0

107.2

114.4

116.4

112.4

FY17

FY18

FY19

FY20

FY21

FY17

FY18

FY19

FY20

FY21

FY17

FY18

FY19

FY20

FY21

STVR outcome % for executives

Interim Final

Special

Share price ($)

Impact on Executive reward
ASX’s remuneration framework focuses Executives on attaining long-term, sustainable performance. This is achieved by connecting our
Executives to the experience of shareholders through equity-based deferral of their STVR and through the LTVR. The LTVR rewards the
achievement of challenging performance hurdles based on the underlying EPS compound annual growth rate and ASX's relative TSR
compared to other ASX 100 companies, excluding property trusts. Both performance measures are assessed over four years.

In FY21, the 2016 LTVR grant was tested.

• ASX’s underlying EPS compound annual growth rate over the four years to 30 June 2020 was 4.75%, which did not meet the

minimum performance hurdle of 5.10%, and this award subsequently lapsed. ASX's long-term underlying EPS can be seen on the
preceding chart.

• ASX’s relative TSR was in the 90th percentile of the peer group and therefore the TSR-related portion of this award vested in full.

The relative TSR of ASX compared to the peer group can be seen in the following chart.

ASX four-year relative TSR against the ASX 100 excluding property trusts

500%

400%

300%

200%

100%

-100%

102%

16%

1 3 5 7

X
S
A

1
1

3
1

5
1

7
1

9
1

1
2

3
2

5
2

7
2

9
2

1
3

3
3

5
3

7
3

9
3

1
4

3
4

5
4

7
4

9
4

1
5

3
5

5
5

7
5

9
5

1
6

3
6

5
6

7
6

9
6

1
7

3
7

5
7

7
7

9
7

1
8

Total shareholder return (4 years)

ASX

Median

ASX Annual Report 2021 / Remuneration report continued

Remuneration report continued

4. Executive remuneration framework
4.1 Application of reward principles
The Board has determined six principles which provide a clear link between our vision, our business strategy and our remuneration
framework. A summary of the remuneration principles and their delivery through the remuneration framework is provided below.

Principle

Execution

Vision and strategy

• To support the realisation of ASX’s vision and delivery of our strategy, Executives are rewarded for

Supports the realisation of
ASX’s vision and its strategy to
create long-term, sustainable
shareholder value
Customer
Holistic
focussed
performance

Vision and
strategy

Customer-focused

Reflects the outcomes achieved
for ASX’s customers

Vision and
strategy

Customer
focussed

Holistic
Holistic performance
performance

Risk aligned

both the short-term and long-term performance of the Group.

• The STVR is based around a target outcome and adjusted to recognise the achievement of goals

within the financial year that aligned to ASX’s strategy.

Risk aligned

• The LTVR is aligned to the creation of shareholder value through the relative TSR and EPS hurdles.
• A portion of an Executive’s total variable award is managed through the compulsory deferral in
ASX shares, creating alignment with shareholders through the performance of ASX’s share price.

Market
competitive

Fair and
equitable

• Both the performance of the Group overall and the performance of individual Executives are

assessed against the strategic priorities, with customer-focused goals playing a significant role.

• In determining final variable remuneration outcomes, the Board assesses Executives’ roles in

leading a customer-focused culture and takes into account the range of customer outcomes that
have been achieved in the performance period.

• An Executive delivers value through their achievement of financial goals, quantifiable

Market
competitive

Fair and
equitable

Vision and

strategy

Customer
focussed

Holistic
performance

Vision and

strategy

Customer

focussed

Holistic
performance

Risk aligned

Applies appropriate financial
and non-financial performance
measures and reflects the
accountabilities of each role

Risk aligned

Market
competitive

non-financial goals and delivering against the core accountabilities of their role. ASX believes
it is also important how an Executive achieves their results, and measures their demonstration of
behaviours aligned to ASX's values.

• To determine what reward may be provided to Executives, each year a performance assessment

Fair and
equitable

is undertaken that includes a self-assessment, manager assessment and Board assessment.
This process incorporates subsidiary board or committee feedback where appropriate and an
assessment of risk management by the Chief Risk Officer.

Risk aligned

Encourages behaviours
aligned to our values, our
risk management framework
and our licence to operate

Market
competitive

• The Board considers the management of risks undertaken in determining variable remuneration

outcomes, including the vesting of performance rights previously awarded.

• ASX defers a portion of STVR awards over two and four years to ensure risks are appropriately

considered over the longer term before value is received by the Executive. ASX measures the LTVR
over a period of four years. All variable remuneration is subject to satisfactory performance and
the Board has discretion to make adjustments to deferred remuneration. Adjustments can include
partial reductions or complete forfeiture of the current year STVR or deferred awards.

Fair and
equitable

Market competitive

Attracts and retains employees
with the skills required to deliver
ASX’s strategy

• ASX provides competitive total remuneration (fixed remuneration and variable reward) that is

benchmarked against market data for comparable roles in companies of a similar size and other
publicly available market information.

Vision and

strategy

Customer

focussed

Holistic

performance

Risk aligned

Market
competitive

Fair and
Fair and equitable
equitable

Awards fairly and equitably

• The Board regularly reviews remuneration outcomes across the whole organisation to ensure

there is no bias in how employees are rewarded due to any employee’s personal characteristics.

Vision and

strategy

Customer

focussed

Holistic

performance

Risk aligned

Market
competitive

Fair and
equitable

4.2 Executive remuneration components
The total remuneration for Executives is made up of both fixed and variable remuneration. Variable remuneration is provided through
the STVR and LTVR. Total remuneration is set with reference to market benchmarks, which are typically within the banking, finance, legal,
technology and other sectors relevant to ASX’s functions, or to the broader market.

4.3 Fixed remuneration
ASX provides competitive fixed remuneration to attract and retain talent. Fixed remuneration is paid as cash and comprises salary,
superannuation, and salary sacrificed items including non-monetary benefits and the general Employee Share Plan. Fixed remuneration
is set considering the mix of fixed remuneration and variable remuneration appropriate for the role.

52 ASX Annual Report 2021 / Remuneration report continued

Remuneration report continued

4.4 Short-term variable reward
The considerations in determining the STVR outcomes for Executives are illustrated in the following diagram.

Group reward pool %
Determines the available pool
based on Group performance

Target STVR in $
Target reward model

On-target STVR as % of total reward

Individual performance rating
Individual goals linked to ASX strategy
determine the individual performance
outcome and range of STVR outcomes

Behaviours and risk management
used as a moderator to determine
the initial STVR recommendation

STVR outcome
Board determines the ﬁnal STVR outcome

60% of STVR award is deferred into
equity for between two and four years

The following table outlines the key elements of the STVR Plan.

Purpose

Performance

• Encourage the achievement of financial and non-financial goals that support the Group's strategy.
• Reflect the appropriate management of risk.
• Deferral periods extend the reward timeframe to consider risks being managed.
• Reflects behaviours to ensure employees act in accordance with ASX’s values.
Group performance
• The target STVR pool for Executives is calculated as
the sum of individual target reward opportunities.

• Following an assessment of the Group’s performance, the
Board determines what percentage of the pool may be
released. This is referred to as the Group reward pool.
• The Group reward pool represents the maximum

amount available for STVR payments across
employees under the STVR Plan. An amount less
than this limit may be spent, depending on individual
performance.

• The CEO's STVR is determined separately to the

Group reward pool.

Individual performance
• Individual performance is based on a holistic assessment of an Executive's
performance and behaviours across their core accountabilities and their
delivery of strategic priorities.

• An Executive's goals are cascaded from the Vision, Strategy and Execution
goals, the Group Scorecard and goals drawn from the accountabilities of an
Executive’s role.

• An Executive’s performance rating determines what percentage of

individual STVR targets are received.

• The range is 0% to 150%.

Evaluation
and approval

• The CEO presents the Board with an assessment

• For Executives: The Chief Risk Officer makes an assessment of risk

of the Group’s performance based on achievement
against the Vision, Strategy and Execution goals, the
Group Scorecard and the management of risk.

management for all Executives, incorporating feedback from other control
functions. The Chief Risk Officer subsequently provides this assessment
directly to the Remuneration Committee.

• The Board incorporates feedback from the CEO and
the Chief Risk Officer and other relevant control
functions to determine the Group reward pool.

• The CEO recommends to the Remuneration Committee the individual

performance ratings and the percentage of STVR target to be applied for
Executives, considering feedback from the Chief Risk Officer, the Audit and
Risk Committee, and Clearing and Settlement Boards where appropriate.
• The Remuneration Committee considers the CEO’s recommendations and

then makes final recommendations to the Board for approval.

• For the CEO: The Chairman of the Board provides performance and STVR
recommendations to the Remuneration Committee, considering feedback
from the Chief Risk Officer and Clearing and Settlement Boards.

• The Remuneration Committee considers the Chairman’s recommendations

and then makes final recommendations to the Board for approval.

Instrument

Treatment
upon
departure

• 40% of the STVR is delivered in cash, with 60% deferred into restricted ordinary shares. Half of the deferred portion vests after two
years of ongoing employment, with the remainder vesting after four years of ongoing employment. Restricted shares hold the same
rights as ordinary shares, including voting and receiving dividends.

• Under the rules of the STVR Plan, restricted shares will be forfeited if the participant ceases employment due to reasons other than
a qualifying reason. A qualifying reason means death, permanent disability, retirement, hardship, redundancy or other reasons deter-
mined by the Board. If the participant’s employment is terminated for a qualifying reason, the Board retains a discretion to determine
that some or all shares will not be forfeited and release the holding lock.

ASX Annual Report 2021 / Remuneration report continued

Remuneration report continued

4.5 Long-term variable reward

Key features of the Plan are summarised below. The LTVR Plan rules were last updated in July 2018.

Purpose

Encourage performance that creates long-term value for shareholders. The combination of relative TSR and underlying EPS
hurdles provides balance to the Plan by measuring performance on both a relative and absolute basis.

Performance

Performance
measures

• Relative: rewards participating Executives for Group performance that exceeds that of peer companies.

• Absolute: ensures there is a continued focus on providing positive growth, a core measure of value created.
Participation is limited to the CEO and Deputy CEO. These roles are eligible for LTVR to reward the achievement of Group
financial results. Other Executives are rewarded for the achievement of our long-term strategy through the achievement of the
Vision, Strategy and Execution goals. Their reward is aligned to the shareholder experience through the deferral of the majority
of their STVR into restricted shares, for between two and four years.
The face value of the maximum potential LTVR award for the CEO and Deputy CEO is 50% of their fixed remuneration.

Relative performance measure
Relative total shareholder return (50%)
• Relative TSR is measured over a four-year period against a

peer group determined by the Board at the time of the offer.
Currently, it is based on the ASX 100, excluding property trusts.

• The peer group may change as a result of specific events
such as mergers and acquisitions or de-listings. The Plan
rules determine the adjustments of the peer group following
such events.

Absolute performance measure
Underlying earnings per share growth (50%)
• Underlying EPS performance is measured over a four-year
period using the most recent financial year-end prior to the
granting of the award as the base year, and the final financial
year in the performance period as the end-year.

Vesting schedule

Performance
Less than 51st percentile

51st percentile

Vesting
0%

25%

Greater than 76th percentile

100%

Calculation

Vesting occurs in a straight line between the 51st and 76th
percentile.
• The TSR of ASX and the peer group is calculated as the

movement in share price and dividends received, assuming
the re-investment of dividends.

• The TSR is calculated over a four-year period, using the
three-month volume weighted average price up to (and
including) the start date, and the three-month volume
weighted average price including the reinvestment of
dividends up to (and including) the end date of the
performance period.

Performance p.a.
Less than 5.1%

5.1%

Greater than 10%

Vesting
0%

50%

100%

Vesting occurs in a straight line between 5.1% and 10%.

• Underlying EPS is calculated by dividing the underlying profit
after tax for the relevant reporting period (profit after tax
adjusted for the after tax effect of any significant items) by
the weighted average number of ordinary shares of ASX.
This is then compared to the starting EPS, calculated in a
similar fashion to determine the EPS performance.

• To arrive at underlying profit after tax, significant items may
be excluded. These items are determined by the Board and
may include revenues and expenses associated with specific
events or the results of corporate actions. Exclusion of these
items would be clearly identified and explained if such action
impacted any vesting outcome.

Performance period

Four years

Instrument

Determining
the number of
performance rights

Expiry

Dividends

Retesting

Treatment upon
departure

Performance rights over ASX ordinary shares. For grants made from FY19 onwards, the Board may, at its discretion, elect to
settle vested LTVR allocations with a cash equivalent payment. The value of the cash payment will be determined based on
the number of rights that have vested, multiplied by the volume weighted average price over the 20 trading days prior to the
vesting date.

The number of performance rights allocated is based on the volume weighted average price of ASX shares on the 10 business
days preceding the grant date (face value).

The expiry date is the date of the end of the performance period. At this point any performance rights that have not vested will
lapse.

Dividends are not paid on performance rights.

If an Executive ceases employment for a qualifying reason, any performance rights may remain on foot in accordance with
their original terms, except that any service condition will be waived. The Board retains a discretion to determine whether
performance rights that remain on foot subsequently vest or lapse. A qualifying reason includes death, permanent disability,
mutual agreement with ASX, termination by ASX on notice, redundancy, retirement, or other circumstances determined by the
Board. Unless the Board determines otherwise, performance rights will lapse if an Executive’s employment is terminated for
cause, poor performance, or if the Executive resigns.

54 ASX Annual Report 2021 / Remuneration report continued

Remuneration report continued

4.6 Executive remuneration mix
Executive remuneration is aligned to the executive remuneration principles set out in section 4.1. All Executives receive fixed
remuneration and STVR. In addition, the CEO and Deputy CEO receive an LTVR component. The chart below sets out the remuneration
structure and mix for the CEO and Deputy CEO.

At-risk

Fixed remuneration
40%

Target STVR
40%
Equity deferred 2 years
30%

Cash
40%

LTVR grant face value
20%

Equity deferred 4 years
30%

TSR (50%
of award)

EPS (50%
of award)

The chart below sets out the remuneration structure and mix for Executives other than the CEO and Deputy CEO. These Executives comprise
the Chief Financial Officer, Chief Operating Officer and Chief Risk Officer.

Fixed remuneration
50-74%

At-risk

Target STVR
26-50%
Equity deferred 2 years
30%

Cash
40%

Equity deferred 4 years
30%

4.7 Executive remuneration delivery
The chart below sets out the periods for awarding remuneration to the CEO and Deputy CEO. Other Executives are not eligible to receive
the LTVR. For all Executives, a significant portion of their potential remuneration is deferred between two and four years from the end
of the current performance year.

FY21

FY22

FY23

FY24

FY25

Fixed remuneration

Cash STVR

Deferred STVR (equity)

LTVR (equity)

Cash STVR paid

Deferred STVR and LTVR grant

Deferred STVR and LTVR vesting

5. Remuneration governance
The diagram below provides an overview of governance arrangements relating to remuneration.

The Chief Risk Ofﬁcer
provides an independent
assessment of risk
management

The Audit and Risk
Committee and the
Clearing and Settlement
Boards provide input to the
Remuneration Committee

External advisers provide
independent advice

Remuneration
Committee

ASX Board

Shareholders

ASX Annual Report 2021 / Remuneration report continued

Remuneration report continued

5.1 Role of the ASX Board
The Board oversees and approves the non-executive director remuneration and Executive remuneration arrangements. The Board has
established a Remuneration Committee for recommending remuneration policy for the Group. The ultimate responsibility for remuneration
policy matters rests with the Board.

5.2 Role and responsibilities of the Remuneration Committee
The Remuneration Committee develops the remuneration principles, framework and policies for the Group. The Remuneration Committee’s
responsibilities are outlined below.

Recommend to the Board:

• Remuneration arrangements and all reward outcomes for Executives

• Performance against goals and targets for Executives, incorporating an evaluation of risk management performance

• Remuneration for Executive appointments and retention matters

• ASX’s remuneration and variable reward framework, including STVR and LTVR arrangements and participation

• Non-executive director fees.

Conduct reviews of:

• The ongoing monitoring of the effectiveness of the remuneration policy in supporting ASX’s values while complying with regulatory

requirements

• Executive succession and key staff succession plans

• Progress against gender diversity objectives and the active promotion of a collaborative and inclusive culture

• The capabilities required to deliver the organisation’s strategy.

5.3 Board discretion relating to variable remuneration
The Board understands that to make good remuneration decisions it needs both a robust framework and to proactively and consistently
exercise judgement. The Board retains discretion to adjust any variable reward outcome, both prior to a payment being made or before
deferred remuneration vests.

The Board takes into account information from a range of sources. This is to ensure that decisions are well-informed and consider the
outcomes achieved for the Group's stakeholders. The Board has an established process to seek feedback on Executive performance from
the Audit and Risk Committee and the Clearing and Settlement Boards, as well as reports on risk management from the Chief Risk Officer
and other control functions. Using this information, the Board evaluates remuneration outcomes against an agreed set of remuneration
principles and relevant precedents. Executives are not able to participate in discussions that impact their own remuneration. This approach
ensures independence, objectivity, fairness and consistency in the process of determining appropriate remuneration outcomes.

5.4 Clawback Policy
The Board retains the discretion to adjust performance-based remuneration that has not yet been realised or vested without restrictions,
for any employee or group of employees within the ASX Group, if it considers that such remuneration would be an inappropriate benefit.

The Board has absolute discretion to determine what constitutes an inappropriate benefit. Examples that may lead to an inappropriate
benefit include:

• Mismanagement of material risk issues for the Group

• Fraudulent or dishonest behaviour

• A material misstatement or omission in ASX’s financial statements

• A breach of obligations to ASX

• Acting in a manner that brings ASX into disrepute

• Any other circumstances which the Board determines in good faith to have resulted in an inappropriate benefit.

5.5 External advice
When an external perspective is needed, the Remuneration Committee may seek professional advice from remuneration advisers.
Remuneration advisers are engaged by the Committee independently of management when receiving remuneration recommendations,
as defined by the Corporations Act 2001. During FY21, the Committee did not engage any external advisers to provide remuneration
recommendations as defined by the Corporations Act 2001.

5.6 Engagement with external stakeholders
Each year, the ASX Chairman meets with investors and proxy advisers. These meetings provide an opportunity to discuss remuneration
practices and policies, and any issues raised by the investor or proxy adviser.

56 ASX Annual Report 2021 / Remuneration report continued

Remuneration report continued

5.7 Share ownership
Share ownership is encouraged among Executives and non-executive directors to strengthen the alignment between their interests and
the interests of shareholders. Executives are encouraged to hold a number of ASX shares equivalent in value to their fixed remuneration.
Executives have five years to accumulate the shares, as outlined in the following table:

Role

Value of Shareholding (% of fixed remuneration)

Managing Director and Chief Executive Officer

Chief Risk Officer

Other Executives

100%

50%

100%

All eligible Executives currently hold a number of shares at or in excess of this level.

It is expected that all ASX non-executive directors hold a number of ASX shares equivalent in value to their base annual director fee (and
in the case of the ASX Chairman, the base annual director fee plus the Chairman fee), by the third anniversary of their appointment.

All eligible non-executive directors currently hold a number of shares at or in excess of this level.

6. Statutory remuneration disclosure – Executives

6.1 Statutory remuneration
The remuneration table below has been prepared in accordance with accounting standards as required by the Corporations Act 2001. The
accounting standards require the disclosure of the expense or cost to the Group in the financial years presented, which may result in only a
portion of cash remuneration being disclosed where payments are deferred to future financial years. In addition, the accounting standards
require the share-based payments expense to be calculated using the grant date fair value of the shares, rather than current market prices.

Short-term

Long-term

Share-based payments

³
y
r
a
t
e
n
o
m
-
n
o
N

n
o
i
t
a
n
m
r
e
T

5
s
t
fi
e
n
e
b

4
r
e
h
t
O

e
v
a
e

e
c
i
v
r
e
s
g
n
o
L

6
l
a
u
r
c
c
a

7
n
o
i
t
a
u
n
n
a
r
e
p
u
S

8
n
a
P
R
V
T
S

9
n
a
P
R
V
T
L

r
a
e
Y

y
r
a
a
S

R
V
T
S

Current
D J Stevens
CEO
P D Hiom12
Deputy CEO

G L Larkins
Chief Financial Officer

H J Treleaven
Chief Risk Officer

Part-year
T J Hogben
Chief Operating Officer

Total

2021
2020

1,967,508
1,963,513
971,198
963,513
778,306
778,997
841,974
837,668

640,000
840,000
400,000
380,000
256,000
320,000
96,000
132,000

10,797
15,484
10,863
15,484

-
-
11,332
16,329

70,372
9,648

(39,261)
2,004
22,828
17,043
(4,636)
62,684

2021
2020

240,714
695,251
4,799,700
5,238,942

75,190
231,000
1,467,190
1,903,000

33
8,746

5,660
24,690

33,025
56,043

54,963
116,069

385,410
-

-
-

385,410
-

-
-

35,013
13,166
16,128
15,693
6,643
2,284
14,743
4,783

21,694
21,003
22,349
21,003
21,694
21,003
21,694
21,003

1,234,284
1,061,784
1,202,635
622,875
306,863
126,863
180,876
156,626

460,545
152,768
738,761
85,900

-
-

11,402
25,822
83,929
61,748

7,426
21,003
94,857
105,015

104,680
274,171
3,029,338
2,242,319

-
-
1,199,306
238,668

d
e
s
a
b
-
e
r
a
h
s
r
e
h
t
O

0
1
s
t
n
e
m
y
a
p

-
-

50,811
270,993

-
-

50,811
270,993

-
e
c
n
a
m
r
o
f
r
e
P

a
t
o
T

1
1

d
e
t
a
e
r

4,440,213
4,077,366
3,708,083
2,106,472
1,443,145
1,537,183
1,161,983
1,231,093

53%
50%

63%
52%

39%
29%

24%
23%

445,105
1,280,683
11,198,529
10,232,797

40%
39%

51%
43%

¹ Base salary excluding payments made under the compulsory superannuation guarantee.
2 The cash component of the STVR earned over FY21, paid in cash in August 2021.
³ Salary-sacrificed items paid over the year including car parking (and associated fringe benefits tax) and participation in the Employee Share Plan.
4 The value of annual leave accrued over the year and salary continuance insurance provided by the Group. This column also shows the amortised value in FY20 of

payments to Hamish Treleaven relating to his commencement of employment.

5 Termination benefits consist of a payment for Mr Hiom in lieu of notice, applicable under his employment contract.
6 Long service leave accrued over the year.
7 Post-employment benefits, comprising the compulsory superannuation guarantee.
8 Annual share-based payments expense for restricted shares issued under the deferred STVR Plan.
9 Annual share-based payments expense for performance rights issued under the LTVR Plan. The expense is calculated using the fair value of performance rights
as at the grant date, less any write-back for performance rights lapsed as a result of non-market hurdles not attained. The LTVR may be either equity or cash
settled as determined by the Board. The FY20 values reflect the reversal of the accrued expense of previous awards which did not vest.

10 The amortised value of 11,604 restricted shares granted to Gillian Larkins on 15 February 2019, with a volume weighted average price of $58.38. The restriction
on 40% of this allocation of shares lifted on 1 September 2019 and the restriction on the remaining 60% lifted on 1 September 2020.
11 Reflects the percentage of total remuneration that is performance-related (short-term cash settled STVR and shared-based payments relating to the STVR and

LTVR Plans).

12 Peter Hiom ceased employment on 1 July 2021. All remuneration earned between 1 July 2020 and Mr Hiom’s cessation date of 1 July 2021 is fully disclosed within
the FY21 Remuneration Report. The value of deferred STVR and LTVR displayed for FY21 recognises all outstanding expenses up to the end of the performance
period. These awards may vest in future subject to the requirements of the Plan rules and ASX's Clawback Policy. Termination benefits do not exceed the thresh-
old requiring shareholder approval under the Corporations Act. Further details are provided in section 6.7 on page 59.

ASX Annual Report 2021 / Remuneration report continued

Remuneration report continued

6.2 Current LTVR grants

Shares relating to grants of performance rights that have vested are allocated from a trust established to hold shares for this purpose.
The table below sets out a summary of the LTVR grants that were in operation during FY21.

Grant year

Grant date

Performance period

Vesting date

Vesting period

Participation

Performance rights awarded

Performance measure

EPS vesting commences at

TSR vesting commences at

Dividends paid

Retesting

Exercise price

Share price at grant date

Volatility p.a.

Discount rate (risk free rate) p.a.

Dividend yield p.a.

Fair value of performance rights
(EPS awards)
Fair value of performance rights
(TSR awards)
Weighted average AASB 2 share-based
payment fair value

2020

2019

2018

2017

30 September 2020

24 September 2019

4 October 2018

26 September 2017

1 October 2020
– 30 September 2024

25 September 2019
– 24 September 2023

5 October 2018
– 4 October 2022

27 September 2017
– 26 September 2021

30 September 2024

24 September 2023

4 October 2022

26 September 2021

4 years

CEO
12,091

Deputy CEO
6,046

CEO
12,281

Deputy CEO
6,141

CEO
15,843

Deputy CEO
7,921

CEO
18,975

Deputy CEO
9,488

50% EPS and 50% TSR

5.1% compound growth

51st percentile

Nil

$81.02

22%

0.25%

2.9%

$72.15

$39.65

$55.90

Nil

$81.61

15%

0.72%

3.2%

$71.80

$29.83

$50.82

Nil

$62.01

16%

2.2%

3.70%

$53.48

$24.34

$38.91

Nil

$52.62

17%

2.24%

4.00%

$44.83

$23.78

$34.30

As is customary, ASX will voluntarily submit Dominic Stevens' 2021 LTVR grant for shareholder approval at the 2021 Annual General
Meeting (AGM).

6.3 FY21 Executive LTVR allocations
The following table shows the movement during the financial year in the number of performance-related rights over issued ordinary shares
in ASX held directly, indirectly or beneficially by the Executives, including their personally related parties.

Held as at
1 July 2020

Granted as
compensation
during the year

Vested during
the year

Lapsed during
the year

Held at
30 June 2021

Current
D J Stevens
P D Hiom
Lapsed rights relate to the LTVR grant made in 2016.
No other KMP had performance-related rights over issued ordinary shares in ASX directly, indirectly or beneficially.

67,988
33,995

12,091
6,046

(10,444)
(5,222)

(10,445)
(5,223)

59,190
29,596

6.4 Potential future value of LTVR allocations for CEO and Deputy CEO
The following table shows the minimum and maximum values of performance rights that may be received by the CEO and Deputy CEO
as remuneration in future financial years.

Grant date:
Vesting date:

26 September 2017
26 September 2021

4 October 2018
4 October 2022

Min $1

Max $2

Min $1

Max $2

24 September 2019
24 September 2023
Min $1

Max $2

30 September 2020
30 September 2024
Min $1

Max $2

Current
D J Stevens
P D Hiom
1 Since the performance rights are issued with a zero exercise price, their minimum total value is nil, on the basis that they will not vest if the applicable

616,451
308,206

650,843
325,438

624,120
312,086

-
-

675,887
337,971

performance/vesting conditions are not met.

2 The amounts represent the maximum fair value for future years of the performance rights yet to vest, as at their grant date. The maximum total value is the

number of rights issued multiplied by the weighted average fair value.

58 ASX Annual Report 2021 / Remuneration report continued

Remuneration report continued

6.5 Beneficial holdings of ordinary shares

Held at 1 July 2020

Received on vesting of
rights over deferred shares

Allocated under deferred
STVR Plan

Other changes

Held at 30 June 2021

Current
D J Stevens

P D Hiom

T J Hogben

G L Larkins

H J Treleaven

53,785

44,579

12,116

10,930

6,349

10,444

5,222

14,126

6,390

3,885

5,381

2,220

1 The closing balance for Tim Hogben is at 2 November 2020, the date he ceased in a KMP role.

6.6 Current KMP service agreements

Minimum notice periods (months)

Name
D J Stevens

P D Hiom

G L Larkins

Position held
CEO

Deputy CEO

Contract effective date1
1 August 2016

Executive
6

1 July 2015

Chief Financial Officer

29 October 2018

(8,943)

(10,541)

(4,178)

(6,962)

ASX
12

69,412

45,650

11,823

9,349

8,583

Poor performance
3
32
32
32

H J Treleaven
1 All Executives have permanent ongoing contracts. Amounts payable on termination include the contractual notice period and any rewards that may be payable

Chief Risk Officer

1 March 2017

under the terms of the STVR and LTVR Plans, which are outlined in sections 4.4 and 4.5.

2 The notice period for termination for poor performance requires an initial written notice of one month.

6.7 Leaving arrangements for Executives
On 26 May 2021, ASX announced the departure of Deputy CEO, Peter Hiom. ASX recognises the significant contribution made by Mr Hiom
to Australia’s financial markets and to the strong performance of ASX’s business over his 23-year tenure, including 11 years as ASX’s Deputy
CEO. After discussions with Mr Hiom, the Board reached a mutual agreement on the basis on which he would resign his employment with
effect from 1 July 2021. A summary of the leaving arrangements is provided below.

• The Board determined that under the LTVR Plan rules Mr Hiom would retain his unvested LTVR. These awards remain subject to their

original performance conditions, to be tested over their normal course, and subject to ASX’s Clawback Policy.

• The Board determined that Mr Hiom would retain his unvested STVR in recognition of these awards being previously earned through

his performance. Unvested STVR will vest over their normal course and be subject to ASX’s Clawback Policy.

• The benefits paid to Mr Hiom upon his leaving were in line with either statutory entitlements, his contract of employment or the rules
of the STVR and LTVR Plans. The ‘termination benefits’ as defined under s200B of the Corporations Act 2001 (Cth) did not exceed the
threshold required for ASX to seek shareholder approval.

Mr Hiom’s remuneration arrangements relating to the period between 1 July 2020 and 1 July 2021 (inclusive) are fully disclosed in the FY21
Remuneration Report. There will be no further benefits awarded in the future. Mr Hiom will not be disclosed in future remuneration reports.

6.8 Loans and other transactions
No transactions or loans involving non-executive directors or Executives, their close family members or entities they control or have
significant influence over, were made during the year (FY20: nil).

7. Non-executive director remuneration arrangements
Non-executive directors receive fees for their contribution on the boards and associated committees on which they serve. The Remuneration
Committee reviews and recommends to the Board the fees provided to non-executive directors.

Non-executive director fees are set to ensure:

• ASX non-executive directors are remunerated fairly for their services, recognising the workload and level of skill and experience

required for the role

• ASX can attract and retain talented non-executive directors.

7.1 Remuneration structure
ASX has not increased its non-executive director fees since October 2017. Under the non-executive director fee structure, remuneration
comprises one base fee (plus superannuation) in respect of a non-executive director appointment to the ASX Limited Board and any committee
and/or its subsidiaries. An additional amount is paid to the chairperson of the ASX Limited Board or a committee or subsidiary board.

The aggregate amount paid to non-executive directors is approved by shareholders at the AGM. The maximum aggregate amount that may
be paid to all ASX non-executive directors in their capacity as members of the ASX Limited Board and its committees, and as non-executive
directors of subsidiary boards, is $3 million per annum. This was approved by shareholders at the 2017 AGM. The amount paid in FY21 was
$2.79 million. Non-executive directors of independent subsidiary boards who do not serve on the ASX Limited Board are not included in the fee pool.

Non-executive directors have no entitlement to any performance-based remuneration or participation in any share-based reward schemes.
ASX does not have a non-executive director retirement scheme.

ASX Annual Report 2021 / Remuneration report continued

Remuneration report continued

7.2 Non-executive director fee schedule
The following table summarises the fees received for each role on the Board.

Fees excluding superannuation ($)

Board/Committee

Board1

Audit and Risk Committee

Remuneration Committee

ASX Clear (Futures)

Austraclear

Role

Chair

Member

Chair

2021

550,000

235,000

45,000

20,000

35,000

20,000

1 ASX Limited Board fees include payment for membership of ASX Limited Board committees and Clearing and Settlement Boards.

7.3 Director fees for FY20 and FY21
The following table sets out the statutory remuneration details for non-executive directors for FY20 and FY21.

Current

D Roche1

Y A Allen

M B Conrad

K R Henry

P R Marriott

P S Nash

H M Ridout

R J Woods2

Former

Year

2021
2020

Short-term salary
and fees

Post-employment
superannuation

327,692
270,000
235,000
235,000
235,000
235,000
235,000
235,000
280,000
280,000
235,000
235,000
255,000
255,000

241,731
117,500

21,694
21,003
21,694
21,003
21,694
21,003
21,694
21,003
21,694
21,003
21,694
21,003
21,694
21,003

21,694
10,501

2020

550,000

235,000

45,000

20,000

35,000

20,000

Total

349,386
291,003
256,694
256,003
256,694
256,003
256,694
256,003
301,694
301,003
256,694
256,003
276,694
276,003

263,425
128,001

Total

2021
2020

P H Warne,3 4

R Holliday-Smith3

461,753
571,003
114,974
276,003
2,794,702
2,867,028
1 Fees disclosed for Damian Roche reflect his role as Chairman of ASX Clear (Futures) Pty Limited up to and including 21 April 2021. Mr Roche's fees also reflect his role as
Chairman of ASX Limited and Chairman of Austraclear Limited from 21 April 2021.
2 Fees for Rob Woods include the fee for his role as Chairman of ASX Clear (Futures) Pty Limited from 21 April 2021.
3 Fees for Rick Holliday-Smith and Peter Warne reflect the period of time they were KMP.
4 Fees disclosed for Peter Warne include the fee for his role as Chairman of Austraclear Limited up to and including 21 April 2021.

444,231
550,000
105,577
255,000
2,594,231
2,667,500

17,522
21,003
9,397
21,003
200,471
199,528

2021
2020

7.4 Equity holdings
The table below sets out current equity holdings for non-executive directors.

Held as at
1 July 2020

Other changes

Held at
30 June 2021

Current
D Roche

Y A Allen

M B Conrad

K R Henry

P R Marriott

P S Nash

H M Ridout

R J Woods

Former
R Holliday-Smith1
P H Warne1
1 Closing balances for Rick Holliday-Smith and Peter Warne are reported as at their cessation dates.

60 ASX Annual Report 2021 / Remuneration report continued

10,000

5,000

5,316

2,000

5,000

3,000

12,000

6,000

4,000

1,000

14,000

5,000

5,316

3,000

5,000

3,000

12,000

6,000

Directors' report

The directors present their report, which includes the Remuneration
Report, together with the financial statements of ASX Limited (ASX
or the Company) and its subsidiaries (together referred to as the
Group), for the year ended 30 June 2021 (FY21) and the auditor’s
report thereon. The financial statements have been reviewed and
approved by the directors on the recommendation of the ASX Audit
and Risk Committee.

The FY21 consolidated net profit after tax attributable to the owners
of ASX was $480.9 million (2020: $498.6 million).

Directors
The directors of ASX in office during the financial year and at the
date of this report (unless otherwise stated) were as follows:

• Damian Roche (Chairman since 21 April 2021)

• Dominic J Stevens (Managing Director and CEO)

• Yasmin A Allen

• Melinda B Conrad

• Ken R Henry AC

• Peter R Marriott

• Peter S Nash

• Heather M Ridout AO

• Rob J Woods

• Peter H Warne (resigned 30 September 2020)

• Rick Holliday-Smith (resigned as a director and Chairman on

21 April 2021).

Directors’ meetings and attendance at those meetings for FY21
(including meetings of committees of directors) are disclosed on
page 38. The qualifications and experience of directors, including
current and recent directorships, are detailed on pages 30 to 32.

Company secretaries
Daniel Moran
Group General Counsel and Company Secretary,
BA (UTS) LLB (UNSW)
Daniel Moran is Group General Counsel and Company Secretary.
Mr Moran joined ASX as Deputy General Counsel in 2010. Prior to
that he was a Senior Associate with the Australian law firm Herbert
Smith Freehills. Since joining ASX he has worked across ASX's
businesses and engaged closely with ASX's boards and committees
as a lawyer and company secretary.

Daniel Csillag
General Manager Company Secretariat and Senior
Legal Counsel, BA LLB (UNSW), FGIA
Daniel Csillag, General Manager Company Secretariat and Senior
Legal Counsel, is also a Company Secretary. He is responsible for
managing company secretariat and corporate governance support
across the Group.

Report on the business
Principal activities
During the year the principal activities of the Group consisted
of providing:

• Securities exchange and ancillary services

• Derivatives exchange and ancillary services

• Central counterparty clearing services

• Registry, depository, settlement and delivery-versus-payment

clearing of financial products

• Technical and information services.

Review of operations
Information on the operations and financial position of the Group,
and its business strategies and prospects, is disclosed in the
Operating and Financial Review on pages 9 to 18.

Operating revenue benefits from ASX's diverse business model,
where key revenue streams complement each other in changing
market conditions. Revenue growth in our equities related
businesses, particularly Listings and Issuer Services, partially
offset the impact of the RBA's yield curve control program on the
Derivatives business.

The Group continues to manage the ongoing COVID-19 situation.
There have not been any significant adverse financial or operational
impacts to date and any known impacts have been reflected in the
FY21 financial statements.

Dividends
Information relating to dividends for the current and prior financial
year, including dividends determined by the Board since the end of
the financial year, is disclosed in note B3 of the financial statements
on page 75.

Significant changes in the state of affairs
There were no significant changes in the Group's state of affairs
during the year.

Events subsequent to balance date
There have been no matters or circumstances that have arisen
which have significantly affected the operations of the Group, the
results of those operations or the state of affairs of the Group from
the end of the period to the date of this report.

Likely developments
For further information about likely developments in the operations
of the Group, refer to the Operating and Financial Review on pages 9
to 18. The expected results from those operations in future financial
years have not been included because they depend on factors such
as general economic conditions, the risks outlined and the success of
ASX's strategies, some of which are outside the control of the Group.

Environmental regulation
The operations of the Group are not subject to any particular or
significant environmental regulations under a Federal, State or
Territory law.

ASX Annual Report 2021 / Directors' report

Directors' report continued

Indemnification and insurance of officers
The Group has paid insurance premiums for directors’ and officers’
liability for current and former directors and officers of the Company,
its subsidiaries and related entities.

The insurance policies prohibit disclosure of the nature of the liabilities
insured against and the amount of the premiums.

The Constitution of ASX provides that every person who is or has
been a director, secretary or executive officer of the Company,
and each other officer or former officer of the Company (or of its
related bodies corporate as the directors in each case determine),
is indemnified by the Company to the maximum extent permitted
by law. The indemnity covers losses or liabilities incurred by the
person as a director or officer, including but not limited to liability
for negligence and for legal costs on a full indemnity basis.

Performance rights over issued shares
At the date of this report, ASX had 88,786 performance rights
outstanding (2020: 101,983). For further details on the performance
rights including performance hurdles for vesting, refer to the
Remuneration Report on pages 43 to 60.

During the year, 15,666 (2020: 6,520) performance rights vested
as a result of partial attainment of hurdles under the September
2016 Long-Term Variable Reward (LTVR) Plan and 15,668 (2020:
6,521) rights lapsed.

Proceedings on behalf of the Group
No application for leave has been made under section 237 of the
Corporations Act 2001 in respect of the Group and no proceedings
have been brought or intervened in on behalf of the Group under
that section.

Remuneration Report
Information on remuneration for the ASX Limited Board and Key
Management Personnel (KMP), is contained in the Remuneration
Report on pages 43 to 60, which forms part of the Directors' Report.

Non-audit services
Details of the amounts paid or payable to the Group's auditor
PricewaterhouseCoopers (PwC) and its related practices for non-audit
services provided during the year are set out in note F5.3 of the
financial statements on page 100.

Directors’ declaration of satisfaction with independence
of auditor
The Board of directors has considered the non-audit services
provided during the year by the auditor and in accordance with advice
provided by resolution of the Audit and Risk Committee, is satisfied
that the provision of those non-audit services is compatible with,
and did not compromise, the auditor independence requirements
of the Corporations Act 2001 for the following reasons:

• Non-audit services were subject to the corporate governance
procedures adopted by the Group and have been reviewed by
the Audit and Risk Committee

• Non-audit services provided do not undermine the general

principles relating to auditor independence as set out in APES
110 Code of Ethics for Professional Accountants, as they did not
involve reviewing or auditing the auditor’s own work, acting in
a management or decision-making capacity for the Company,
acting as an advocate for the Company or jointly sharing risks
and rewards.

A copy of the Auditor’s Independence Declaration as required under
section 307C of the Corporations Act 2001 is on page 63.

Rounding of amounts
ASX is a company of the kind referred to in ASIC Legislative
Instrument 2016/191. Amounts in the financial statements and
the Directors' Report have been rounded to the nearest thousand
or hundred thousand dollars in accordance with that instrument,
unless otherwise indicated.

Signed in accordance with a resolution of the directors:

Damian Roche
Chairman

Dominic Stevens
Managing Director and Chief Executive Officer

Sydney, 19 August 2021

62 ASX Annual Report 2021 / Directors' report continued

Auditor’s independence declaration
As lead auditor for the audit of ASX Limited for the year ended 30 June 2021, I declare that to the best of my knowledge and belief, there
have been:

a. no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and

b. no contraventions of any applicable code of professional conduct in relation to the audit.

This declaration is in respect of ASX Limited and the entities it controlled during the period.

Voula Papageorgiou
Partner

PricewaterhouseCoopers

Sydney, 19 August 2021

PricewaterhouseCoopers, ABN 52 780 433 757

One International Towers Sydney, Watermans Quay, Barangaroo, GPO BOX 2650, SYDNEY NSW 2001
T: +61 2 8266 0000, F: +61 2 8266 9999, www.pwc.com.au

Level 11, 1PSQ, 169 Macquarie Street, Parramatta NSW 2150, PO Box 1155 Parramatta NSW 2124
T: +61 2 9659 2476, F: +61 2 8266 9999, www.pwc.com.au

Liability limited by a scheme approved under Professional Standards Legislation.

ASX Annual Report 2021 / Auditor’s independence declaration

Statutory report – consolidated financial statements

Contents

Consolidated financial statements

Consolidated statement of
comprehensive income

Consolidated balance sheet

Consolidated statement of changes in equity

Consolidated statement of cash flows

Notes to the consolidated financial statements

Significant accounting policies

A1 Significant accounting policies

A2 New and amended standards

A3 Changes in accounting policies

Performance of the Group

B1 Segment reporting

B2 Revenue from contracts with customers

B3 Dividends

B4 Capital management

B5 Earnings per share

B6 Taxation

Risk management

C1 Clearing risk

C2 Cash

C3 Financial risk

Investments

D1 Investments in equity instruments

D2 Equity accounted investments

Other balance sheet assets and liabilities
E1 Trade and other receivables
E2 Intangible assets

E3 Property, plant and equipment

E4 Trade and other payables

E5 Provisions

E6 Right-of-use assets (leases)

Group disclosures

F1 Subsidiaries

F2 Deed of Cross Guarantee

F3 Related party transactions

F4 Parent entity financial information

F5 Other disclosures

F5.1 Commitments

F5.2 Share-based payments

F5.3 Auditor’s remuneration

F5.4 Subsequent events

Directors’ declaration

Independent auditor’s report

100

101

102

64 ASX Annual Report 2021 / Statutory report – consolidated financial statements

Consolidated statement of comprehensive income

For the year ended 30 June

Revenue

Listings and Issuer Services

Derivatives and OTC Markets

Trading Services

Equity Post-Trade Services

Interest income

Share of net (loss) of equity accounted investments

Expenses

Staff

Occupancy

Equipment

Administration

Finance costs

Note

Depreciation and amortisation

Impairment of equity accounted investments

E2, E3, E6

Profit before income tax expense

Income tax expense

Net profit for the year attributable to owners of the Company

Other comprehensive income

Items that may be reclassified to profit or loss
Change in the fair value of cash flow hedges

Items that cannot be reclassified to profit or loss
Change in the fair value of investments in equity instruments

Other comprehensive loss for the year, net of tax

Total comprehensive income for the year attributable to owners of the Company

Earnings per share

Basic earnings per share (cents per share)

Diluted earnings per share (cents per share)

2021
$m

260.8

290.8

267.0

143.7

60.7

(5.9)

1,017.1

(154.3)

(9.4)

(45.4)

(50.6)

(14.0)

(55.5)

(329.2)

687.9

(207.0)

480.9

(0.1)

(11.3)

(11.4)

469.5

248.4

2020
$m

239.7

323.6

258.3

127.4

151.3

(5.0)

1,095.3

(145.4)

(9.7)

(37.3)

(47.4)

(67.5)

(52.0)

(15.2)

(374.5)

720.8

(222.2)

498.6

(0.5)

0.2

(0.3)

498.3

257.6

The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.

ASX Annual Report 2021 / Consolidated statement of comprehensive income

Consolidated balance sheet

As at 30 June

Current assets

Cash

Other financial assets at amortised cost

Financial assets at fair value through profit or loss

Trade and other receivables¹

Prepayments

Total current assets

Non-current assets
Investments in equity instruments

Equity accounted investments

Intangible assets

Net deferred tax asset

Property, plant and equipment

Right-of-use assets

Prepayments

Total non-current assets

Total assets

Current liabilities

Amounts owing to participants

Trade and other payables¹

Current tax liabilities

Provisions

Lease liabilities

Revenue received in advance

Total current liabilities

Non-current liabilities
Amounts owing to participants

Provisions

Lease liabilities

Revenue received in advance

Total non-current liabilities

Total liabilities

Net assets

Equity
Issued capital

Retained earnings

Reserves

Total equity

Note

2021
$m

5,357.8

7,565.4

458.7

362.6

21.0

13,765.5

41.8

45.8

2,566.5

48.1

58.2

64.3

6.8

2,831.5

16,597.0

12,014.8

332.0

21.9

20.0

9.8

108.7

2020
$m

858.1

12,511.4

487.5

761.6

23.3

14,641.9

45.1

40.5

2,496.8

44.8

62.1

74.9

8.7

2,772.9

17,414.8

12,477.2

726.8

25.8

17.9

9.5

89.1

12,507.2

13,346.3

200.0

6.0

62.6

84.9

353.5

12,860.7

3,736.3

3,027.2

629.9

79.2

3,736.3

200.0

5.5

71.6

71.0

348.1

13,694.4

3,720.4

3,027.2

603.8

89.4

3,720.4

¹ The movements in ‘Trade and other receivables’ and ‘Trade and other payables’ reflect the material changes in the margin requirements as a result of the movement
in the underlying positions of relevant clearing participants on the last trading day of the reporting period. These were settled the following business day.

The above consolidated balance sheet should be read in conjunction with the accompanying notes.

66 ASX Annual Report 2021 / Consolidated balance sheet

Consolidated statement of changes in equity

For the year ended 30 June

Note

Opening balance at 1 July 2020
Profit for the year

Other comprehensive loss
for the year

Total comprehensive income for
the period, net of tax

Transactions with owners in their
capacity as owners:
Incentive plans –
value of employee services

Dividends paid

Closing balance at 30 June 2021

Opening balance at 1 July 2019

Profit for the year

Other comprehensive loss
for the year

Total comprehensive income for
the period, net of tax

Transactions with owners in their
capacity as owners:
Incentive plans –
value of employee services

Dividends paid

Issued
capital
$m

3,027.2
-

3,027.2

Closing balance at 30 June 2020

3,027.2

Retained
earnings
$m

603.8
480.9

480.9

(454.8)

629.9

801.7

498.6

(696.5)

603.8

Reserves
$m

89.4
-

(11.4)

1.2

79.2

87.5

(0.3)

2.2

89.4

Total
equity
$m

3,720.4
480.9

(11.4)

469.5

1.2

(454.8)

3,736.3

3,916.4

498.6

(0.3)

498.3

2.2

(696.5)

3,720.4

The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

ASX Annual Report 2021 / Consolidated statement of changes in equity

Consolidated statement of cash flows

For the year ended 30 June

Cash flows from operating activities
Receipts from customers

Payments to suppliers and employees

(Decrease)/increase in participants’ margins and commitments¹

Net movement in financial assets at amortised cost

Interest received

Interest paid

Income taxes paid

Net cash inflow from operating activities

Cash flows from investing activities
Payments for investments in equity instruments

Payments for equity accounted investments

Payments for other non-current assets

Net cash (outflow) from investing activities

Cash flows from financing activities
Dividends paid

Proceeds from borrowings

Repayment of borrowings

Principal payments for leased assets

Net cash (outflow) from financing activities

Net increase in cash
(Decrease) in the fair value of cash

(Decrease) in cash due to changes in foreign exchange rates

Cash at the beginning of the year

Cash at the end of the year

Total funds available for the Group to invest comprises the following:

As at 30 June
ASX Group funds

Participants’ margins and commitments

Less: non-cash collateral

Total

Cash

Other financial assets at amortised cost

Total

Note

F4(d)

2021
$m

1,080.4

(343.6)

736.8
(428.2)

4,957.4

53.7

(15.3)

(209.4)

5,095.0

(12.9)

(11.2)

(101.3)

(125.4)

(454.8)

200.0

(200.0)

(9.6)

(464.4)

4,505.2
(0.1)

(5.4)

858.1

5,357.8

1,167.1

12,214.8

(458.7)

12,923.2

5,357.8

7,565.4

12,923.2

2020
$m

1,038.5

(309.4)

729.1
2,496.5

(1,630.3)

101.8

(76.1)

(285.7)

1,335.3

(14.9)

(8.7)

(82.2)

(105.8)

(696.5)

100.0

(100.0)

(6.1)

(702.6)

526.9
(0.7)

(1.2)

333.1

858.1

1,179.8

12,677.2

(487.5)

13,369.5

858.1

12,511.4

13,369.5

¹ Commitments are cash backed and included under 'Amounts owing to participants' in non-current liabilities.

The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.

68 ASX Annual Report 2021 / Consolidated statement of cash flows

Consolidated statement of cash flows continued

Reconciliation of the operating profit after income tax to the net cash flows from operating activities

For the year ended 30 June

Net profit after tax

Non-cash items
Depreciation and amortisation

Share-based payments

Share of net loss of equity accounted investments

Foreign currency revaluation

Impairment of equity accounted investments

Total non-cash items

Changes in operating assets and liabilities
Decrease/(increase) in other financial assets at amortised cost¹

Decrease in financial assets at fair value through profit or loss (FVTPL)

(Decrease) in tax balances
Decrease in receivables2
Decrease/(increase) in prepayments

(Decrease)/increase in amounts owing to participants³
(Decrease)/increase in trade and other payables2
Increase in revenue received in advance

Increase in provisions

Net cash inflow from operating activities

2021
$m

480.9

55.5

1.2

5.9

5.4

68.0

2020
$m

498.6

52.0

2.2

5.0

1.2

15.2

75.6

4,946.0

(1,686.0)

28.8

(2.4)

9.1

4.2

(462.4)

(13.3)

33.5

2.6

5,095.0

619.0

(63.5)

3.2

(4.7)

1,876.2

2.4

11.2

3.3

1,335.3

¹ Reconciliation of this line item to the statement of cash flows on page 68 includes interest from discount securities reflected within net profit after tax.
² Changes in assets and liabilities from investing and financing activities such as margins receivable/payable, certain accruals, makegood provisions and securities

pledged under repurchase agreements are excluded.

³ Reconciliation of this line item to the statement of cash flows on page 68 includes foreign currency revaluation on amounts owing to participants reflected within

the non-cash items above. The line item reflects the net effect of changes in FVTPL and changes in amounts owing to participants.

The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.

ASX Annual Report 2021 / Consolidated statement of cash flows continued

Notes to the consolidated financial statements

Significant accounting policies

A1 Significant accounting policies
(a) Basis of preparation
ASX Limited (ASX or the Company) is a company limited by shares,
incorporated and domiciled in Australia and is a for-profit entity for
the purposes of preparing the financial statements. The financial
statements for the year ended 30 June 2021 are for the consolidated
entity which consists of ASX and its subsidiaries (together referred
to as the Group) and were authorised for issue by the Board of
Directors on 19 August 2021. The directors have the power to amend
and reissue the financial statements.

The financial statements are general purpose financial statements that:

• Have been prepared in accordance with the requirements of the
Corporations Act 2001, Australian Accounting Standards and
other authoritative pronouncements issued by the Australian
Accounting Standards Board (AASB) and International Financial
Reporting Standards (IFRS) issued by the International
Accounting Standards Board (IASB)

• Include the assets and liabilities of all subsidiaries of the

Company as at 30 June 2021 and the results of the subsidiaries
for the year then ended. Inter-entity transactions with, or
between, subsidiaries are eliminated in full on consolidation

• Have been prepared on a historical cost basis, except for

financial assets at FVTPL and investments in equity instruments
which have been measured at fair value through other
comprehensive income (FVTOCI) (refer to notes C3 and D1)

• Are measured and presented in Australian dollars which is
ASX’s functional and presentation currency with all values
rounded to the nearest thousand or hundred thousand dollars
in accordance with ASIC Legislative Instrument 2016/191,
unless otherwise indicated.

(b) Key judgments and estimates
In the process of applying the Group’s accounting policies,
management has made a number of judgments and applied
estimates concerning future events. Judgments and estimates that
are material to the financial report are found in the following notes:

• B2 Revenue from contracts with customers

• D1 Investments in equity instruments

• D2 Equity accounted investments

• E2 Intangible assets

• E6 Leases.

Key judgments and estimates are contained in shaded text and
included in the relevant note.

c) Accounting policies

Foreign currency translation
Foreign currency transactions are translated into Australian
dollars, being the currency of the primary economic environment
in which the group operates (the functional currency), using the
exchange rates prevailing at the dates of the transactions. Foreign
exchange gains and losses resulting from the settlement of such
transactions, and from the translation at period end exchange rates of
monetary assets and liabilities denominated in foreign currencies, are
recognised in profit or loss, except where they are deferred in equity
as qualifying cash flow hedges (refer to note C3) and investments
in equity instruments (refer to note D1).

Goods and Services Tax (GST)
Revenues and expenses are recognised net of the amount of GST,
except where the amount of GST is not recoverable from the taxation
authority. In these circumstances the GST is recognised as part of
the item of expense to which it relates.

Assets are recognised net of the amount of GST, except where the
amount of GST is not recoverable from the taxation authority. In these
circumstances the GST is recognised as part of the cost of acquisition
of the asset. Receivables and payables are stated with the amount of
GST included. The net amount of GST recoverable from, or payable
to, the taxation authority is included as a current asset or liability.

Cash flows are reported on a gross basis and inclusive of GST. The
GST components of cash flows arising from investing and financing
activities which are recoverable from, or payable to, the taxation
authority are classified as operating cash flows.

Other accounting policies
Other significant accounting policies are contained in shaded text
and are included in the relevant note. These policies have been
consistently applied to all years presented, unless otherwise stated.

(d) Reclassification of prior year balances
Certain comparative balances may be reclassified to ensure consistency
with changes to current period presentation and classification.

70 ASX Annual Report 2021 / Notes to the consolidated financial statements

Notes to the consolidated financial statements continued

A2 New and amended standards
(a) New and amended standards and interpretations
adopted by the Group
The AASB has issued a number of standards and amendments
to standards that are mandatory for the first time in the
reporting period commenced 1 July 2020. The Group has assessed and
determined that there are no new or amended standards
applicable for the first time for the 30 June 2021 year-end report that
materially affect the Group’s accounting policies or any of the
amounts recognised in the financial statements.

(b) New and amended standards and interpretations
not yet adopted by the Group
The AASB has issued a number of new or amended accounting
standards and interpretations that are not mandatory for the first
time in the reporting period commenced 1 July 2020. The Group has
assessed these standards and interpretations and determined that
there are no standards or amendments to standards that are not
yet effective that are expected to have a material impact on the
Group in the current or future reporting period.

A3 Change in accounting policies
ASX previously capitalised costs incurred in configuring or
customising a supplier’s application software in a cloud computing
arrangement as intangible assets, as the Group considered that
it would benefit from those costs to implement the cloud-based
software over the expected renewable term of the cloud computing
arrangement. Following the IFRS Interpretations Committee (IFRS
IC) agenda decision on Configuration or Customisation Costs in
a Cloud Computing Arrangement in March 2021, the Group has
reconsidered its accounting treatment and adopted the treatment
set out in the IFRS IC agenda decision, which is to recognise those
costs as intangible assets only if the activities create an intangible
asset that the entity controls and the intangible asset meets the
recognition criteria. Costs that do not result in intangible assets are
expensed as incurred, unless they are paid to the supplier of the
cloud-based software to significantly customise the cloud-based
software for the Group, in which case the costs are recorded as a
prepayment for services and amortised over the expected renewable
term of the cloud computing arrangement.

As a result of this change in accounting policy, ASX completed a
review of the existing intangible assets portfolio and there was
no material impact to software-intangible assets as a result of the
change in accounting policy.

Performance of the Group

B1 Segment reporting
(a) Description of segment
Operating segments are reported in a manner consistent with the
internal reporting provided to the Chief Operating Decision Maker
(CODM). The CODM, who is responsible for allocating resources
and assessing performance of the operating segments, has been
identified as the Managing Director and CEO.

The CODM assesses performance of the Group as a single segment,
being an integrated organisation that provides a multi-asset class
product offering which includes:

• Listing and issuer services offered to public companies and

other issuers

• Trading venue or exchange activities for trading

• Clearing and settlement activities

• Exchange-traded and over-the-counter (OTC) products

• Information and technical services supporting the Group's

activities.

Multi-asset class service offerings include equities, interest rate,
commodity and energy products across cash and derivatives markets.

In addition to reviewing performance based on statutory profit after
tax, the CODM assesses the performance of the Group based on
underlying profit after tax. This measure excludes amounts regarded
as significant items of revenue and expense such as those that may
be associated with significant business restructuring or individual
transactions of an infrequent nature. In the prior reporting period,
the impairment to the carrying value of the equity investment in
Yieldbroker was treated as a significant item and excluded from
underlying profit after tax.

Group performance measures, including earnings before interest
and tax (EBIT) and earnings before interest, tax, depreciation
and amortisation (EBITDA), are also reviewed by the CODM. In
assessing performance, expected credit loss (ECL) allowances and
arrangements where revenue is shared with external parties are
reclassified from expenses to operating revenue; certain expenses
are reclassified within operating expenses; and interest income is
presented net of interest expense.

On 1 July 2021, ASX reorganised the business into four clearly
defined revenue generating business units reporting directly to
the Managing Director and CEO. However, up to 30 June 2021, the
accounting and financial performance continued to be reported
(both internally and externally) on the basis of the existing structure.
The new structure will be reflected in ASX’s financial statements
for the first half of the 2022 financial year.

(b) Segment results
The information provided on a regular basis to the CODM, along
with a reconciliation to statutory profit after tax for the period
attributable to owners of the Company, are presented on the
following page.

ASX derives all external customer revenue within Australia with
some services accessible, and some customers located, offshore.

No single customer generates revenue greater than 10% of the
Group’s total revenue.

ASX Annual Report 2021 / Notes to the consolidated financial statements continued

Notes to the consolidated financial statements continued

Performance of the Group

2021

2020

Segment
information
$m

Adjustments
$m

Consolidated
income statement
$m

Segment
information
$m

Adjustments
$m

Consolidated
income statement
$m

For the year ended 30 June

Revenue
Listings

Issuer services

Listings and Issuer Services
Equity options

Futures and OTC clearing

Austraclear

Derivatives and OTC Markets
Cash market trading

Information services

Technical services

Trading Services

Cash market clearing

Cash market settlement

Equity Post-Trade Services

Operating revenue
Interest income

Share of net (loss) of equity
accounted investments

Total revenue

Expenses
Staff

Occupancy

Equipment

Administration

Variable

ASIC levy

Operating expenses

EBITDA
Finance costs

Depreciation and amortisation

Impairment of equity accounted
investments

Total expenses

EBIT

Net interest income
Net interest income

Net interest on participant
balances

Net interest income

Underlying profit before tax

Income tax expense

Underlying profit after tax

Significant items¹

182.5

75.7

258.2
11.6

214.4

58.6

284.6
61.0

118.0

86.0

265.0

71.0

72.7

143.7

951.5

(154.3)

(9.4)

(42.5)

(27.9)

(14.2)

(8.5)

(256.8)

694.7
-

(53.5)

641.2

(3.9)

50.6

46.7

687.9

(207.0)

480.9

2.5

0.1

2.6
0.1

(0.3)

6.4

6.2
-

2.0

60.7

(5.9)

65.6

(2.9)

(22.7)

14.2

8.5

(14.0)

(2.0)

(18.9)

3.9

(50.6)

(46.7)

185.0

75.8

260.8
11.7

214.1

65.0

290.8
61.0

118.0

88.0

267.0

71.0

72.7

143.7

60.7

(5.9)

1,017.1

(154.3)

(9.4)

(45.4)

(50.6)

(14.0)

(55.5)

(329.2)

687.9

(207.0)

480.9

175.9

61.2

237.1
18.5

242.9

56.2

317.6
64.2

106.8

85.3

256.3

65.3

62.1

127.4

938.4

(145.4)

(9.7)

(35.4)

(26.0)

(10.7)

(8.5)

(235.7)

702.7
-

(50.5)

652.2

7.6

76.2

83.8

736.0

(222.2)

513.8

(15.2)

498.6

2.5

0.1

2.6
0.2

1.0

4.8

6.0
-

2.0

151.3

(5.0)

156.9

(1.9)

(21.4)

10.7

8.5

(67.5)

(1.5)

(15.2)

(88.3)

(7.6)

(76.2)

(83.8)

(15.2)

15.2

178.4

61.3

239.7
18.7

243.9

61.0

323.6
64.2

106.8

87.3

258.3

65.3

62.1

127.4

151.3

(5.0)

1,095.3

(145.4)

(9.7)

(37.3)

(47.4)

(67.5)

(52.0)

(15.2)

(374.5)

720.8

(222.2)

498.6

Statutory profit after tax
¹ Relates to the impairment of equity accounted investments. Refer to note D2 for further details.

480.9

Revenues and expenses are recognised net of the amount of GST, except where the amount of GST is not recoverable from the taxation authority.
In these circumstances the GST is recognised as part of the item of expense to which it relates.

72 ASX Annual Report 2021 / Notes to the consolidated financial statements continued

Notes to the consolidated financial statements continued

Performance of the Group

B2 Revenue from contracts with customers
(a) Disaggregation of revenue
The Group derives its revenue from the transfer of services over time
and at a point in time. The following table provides a breakdown of
revenue by the timing of when performance obligations are satisfied
and by major business line.

(b) Revenue received in advance
The Group has recognised the following revenue received in advance
related to contracts with customers. The balances represent the
aggregate transaction price allocated to contract liabilities for
performance obligations that are partially unsatisfied at reporting
date. There is no consideration that has been excluded from the
transaction price.

For the year ended
30 June 2021
Listings and Issuer Services

Derivatives and OTC Markets

Trading Services

Equity Post-Trade Services

Total revenue from contracts
with customers

For the year ended
30 June 2020
Listings and Issuer Services

Derivatives and OTC Markets

Trading Services

Equity Post-Trade Services

Services
satisfied at a
point in time
$m
72.2

Services
satisfied
over time
$m
188.6

256.3

64.7

143.3

536.5

34.5

202.3

0.4

425.8

Services
satisfied at a
point in time
$m
56.4

291.6

68.1

127.0

Services
satisfied
over time
$m
183.3

32.0

190.2

0.4

Total
$m
260.8

290.8

267.0

143.7

962.3

Total
$m
239.7

323.6

258.3

127.4

Total revenue from contracts
with customers
Comparative balances have been restated to allocate 'other revenue' into
respective revenue lines.

405.9

543.1

949.0

As disclosed in note B1, the Group has one operating segment.
The disaggregated revenue in this note differs from the reportable
segment as the ECL allowance and certain revenue share agreements
with external parties are reclassified from expenses to operating
revenue.

As at 30 June

Current
Listings and Issuer Services

Austraclear

Information services

Memberships

2021
$m

86.2

13.5

7.7

1.3

Total current revenue received in advance

108.7

Non-current
Listings and Issuer Services

Total non-current revenue received in
advance

84.9

2020
$m

68.8

12.6

6.4

1.3

89.1

71.0

Total revenue received in advance

193.6

160.1

The Group expects 56% (2020: 55%) of the transaction price allocated
to the above contract liabilities to be recognised as revenue within
the next financial year. The remaining 44% (2020: 45%) all relates
to initial and subsequent listings, and will be recognised as revenue
between FY23 and FY26.

(i) Significant changes in contract liabilities
The opening balance of the revenue received in advance at 1 July
2020 was $160.1 million. The increase in the contract liabilities in
the current year is largely related to initial and secondary listing
activities. The Group bills companies upfront and recognises
these amounts as a contract liability for unsatisfied performance
obligations. Revenue recognition commences from the date a
company lists on the exchange and is amortised over the estimated
period the listing service is expected to be provided.

(ii) Revenue recognised in relation to carried forward
contract liabilities
The following table shows the revenue recognised in the current and
prior year that relates to the opening balance of revenue received
in advance.

For the year ended 30 June
Listings and Issuer Services

Austraclear

Information services

Memberships

Total

2021
$m
68.8

12.6

6.4

1.3

89.1

2020
$m
64.3

11.7

4.3

1.2

81.5

ASX Annual Report 2021 / Notes to the consolidated financial statements continued

Notes to the consolidated financial statements continued

Performance of the Group

Revenue from contracts with customers is recognised using a five
step approach to depict the transfer of promised goods or services
to customers. It is measured at the transaction price specified in
the contract and is net of amounts expected to be refunded to the
customer such as rebates. Revenue also excludes any taxes collected
on behalf of third parties.

The following five steps are applied to determine when revenue is
recognised:
1.

Identify the contract with a customer

2. Identify the separate performance obligations in the contract

3. Determine the transaction price

4. Allocate the transaction price to the separate performance

obligations in the contract

5. Recognise revenue when (or as) the entity satisfies a

performance obligation.

Performance obligations that have not been satisfied at the reporting
date are recognised as revenue received in advance on the balance
sheet.

There are no contracts with customers that have significant financing
components. The Group has considered the time difference between
when it provides the initial and subsequent listing service to the
customer and when the customer pays for the service, and determined
that this does not result in a significant financing component.

All contracts have standard 30-day payment terms.

The transaction price is based on the price specified in the contract
or in accordance with published fee schedules and is net of any
applicable rebates. Rebates are calculated based on actual
transactions or trading, clearing or settlement volumes. Where
this information is not immediately available within the relevant
accounting period, the expected amount is estimated based on
previous experience with the customer and revenue is only recognised
to the extent that it is highly probable that a significant reversal will
not occur. A liability for the rebates is recognised within trade and
other payables, and typically have payment terms of 30 days following
the end of the relevant period.

Revenue is recognised for the major revenue lines as described below.

Listings and Issuer Services
Initial and subsequent listing fees are recognised evenly over the
period the listing service is expected to be provided, which is five years
for initial listings and three years for subsequent listings. These fees
are billed prior to the quotation of initial or secondary capital, and
are recognised within receivables and revenue received in advance
at the time of billing. The recognition of revenue commences from
the date that the entity is admitted to the official list or on quotation
of the secondary capital.

Annual listing fees are billed at the commencement of the financial
year or prior to an entity listing on the exchange, at which point the
fee is recognised within receivables and revenue received in advance.
The revenue is recognised evenly over the financial year in which the
service is provided.

Issuer services revenue includes revenue for the provision of holding
statements and other related activities, and is recognised at the point
that the service is provided.

Derivatives and OTC Markets
Revenue from trading and clearing of futures and equity options,
and clearing of OTC interest rate derivatives is recognised at the
point the service is provided, which is the trade date. The revenue
includes variable consideration for rebates on certain volumes traded.
A liability for rebates is recognised at trade date and they are paid
following the end of the quarter.

Fees for registry services for debt securities are billed upfront and are
net of rebates. They are recognised within receivables and revenue
received in advance, and the revenue is recognised evenly over a
12-month period in which the service is provided.

Fees for Austraclear settlement and cash transactions are billed
monthly net of rebates and are recognised at the point the service is
provided, which is the transaction date. Fees for depository services
for debt securities are billed monthly net of rebates, and are recog-
nised as the service is provided during the month.

Austraclear membership fees are billed at the commencement of
the calendar year or at the time an entity becomes a member. The
revenue is recognised evenly over the calendar year in which the
service is provided.

ASX Collateral service fees are recognised over the period the service
is provided.

Trading Services
Cash market trading revenue is recognised at the point the service
is provided, which is the settlement date. The normal market
convention is that settlement occurs two days after the initial trade date
(T+2). Accordingly, revenue for trades transacted in the last two days
prior to period end is deferred and recognised in the subsequent
reporting period.

Memberships for cash market trading participants are billed at the
commencement of the financial year and recognised within receivables
and revenue received in advance. The revenue is recognised evenly
over the financial year in which the service is provided.

Revenue in relation to information and technical services is recognised
over the period the service is provided.

Equity Post-Trade Services
This includes revenue from clearing and settlement of quoted securities
including equities, debt securities, warrants and exchange-traded
funds, and is recognised at the point that the service is provided,
which is the settlement date. Accordingly, clearing and settlement
fees for trades transacted in the last two days prior to period end
are deferred and recognised in the subsequent reporting period. The
revenue recognised is net of rebates expected to be paid, which are
estimated based on prior experience with customers. The rebate is
paid in the following year.

Key judgments
The Group has applied critical judgment in determining the period
that it expects to satisfy its performance obligations in relation to
listing services. The model to determine the five and three-year listing
periods has taken into account historical information in relation to
the length of time companies have been listed, and excluded those
outside one standard deviation of the mean. There have been no
changes to these periods in the current year.

74 ASX Annual Report 2021 / Notes to the consolidated financial statements continued

Notes to the consolidated financial statements continued

Performance of the Group

B3 Dividends
The Board's policy is to pay a dividend based on 90% of underlying
net profit after tax. This is reviewed each time the Board considers
payment of a dividend. The policy is unchanged from the prior year.

The following table includes information relating to dividends
recognised and paid by ASX during the financial year.

For the year ended 30 June 2021
Final dividend for the year ended
30 June 2020

Interim dividend for the year ended
30 June 2021

Total

For the year ended 30 June 2020
Special dividend for the year ended
30 June 2019

Final dividend for the year ended
30 June 2019

Interim dividend for the year ended
30 June 2020

Total

Cents per
share

Total amount
$m

122.5

112.4

234.9

129.1

114.3

116.4

359.8

237.2

217.6

454.8

249.9

221.3

225.3

696.5

The above dividends paid by the Company include amounts
attached to certain shares held by the Group's Long-Term Incentive
Plan Trust (LTIPT). The dividend revenue recognised by LTIPT has
been eliminated on consolidation. In the current and prior years,
the dividend revenue was less than $0.1 million.

Since the end of the financial year, the directors have determined
a final dividend of 111.2 cents per share totalling $215.3 million. The
dividend will be fully franked based on tax paid at 30%.

A liability is recognised for the amount of any dividends determined
on or before the balance date but not yet paid. Typically, the final
dividend in respect of a financial year is determined after balance
date, and therefore no provision is recognised.

Dividend franking account

As at 30 June
Franking credits available for future
years at 30% adjusted for the
payment of current income tax

2021
$m

300.9

2020
$m

290.5

Adjusting for the payment of the final dividend for the year ended
30 June 2021, the franking credit balance would be $208.7 million
(2020: $188.9 million).

B4 Capital management
At 30 June 2021, equity of the Group totalled $3,736.3 million (2020:
$3,720.4million). The Group’s capital supports a range of activities
and risks. Capital requirements are subject to change from time
to time. Some factors that may impact the amount of capital the
Group requires to support its business include:

• The level of goodwill recognised from business combinations.
This goodwill may be impacted by the performance of the
Group and subsequent impairment leading to a reduction
in capital

• Regulatory standards, both domestic and international, which
may impact the level of capital supporting the clearing and
settlement activities or other licensed activities. Regulatory
standards applying to many financial market participants have
increased in recent years and there is an expectation that these
may increase further over time. There may also be uncertainty
over the application of new regulatory standards

• The competitive environment in which ASX operates may lead to
higher levels of capital in order to provide competitive services,
noting that customers may be able to access competing
services internationally

• The level or concentration of activity undertaken in markets

and clearing and settlement facilities operated by ASX.
Generally a higher level of activity may result in higher capital
requirements, however the relationship is not necessarily linear

• The general economic or credit conditions that may impact on
capital requirements as the level of risk generally increases as
credit conditions deteriorate. The level of operational and business
risk capital held by the Group can be impacted by any revision to
future loss assessments and regulatory requirements

• The level of investments made, their fair value and the potential

movement in their market values. Capital requirements are
also impacted by ASX’s level of investment in existing or new
services. These investments are predominantly in intangible
software assets and other equity investments which may be
subject to write-down under certain circumstances.

The Board's policy is to maintain an appropriate level of capital
within the Group and relevant subsidiaries with the objectives of:

• Meeting its compliance obligations with respect to the Financial
Stability Standards and other regulations, including international
regulations, as required by the various licences held

• Sustaining prudential stability through maintaining an

adequate level of equity at the Group level, cognisant of the fact
that a significant allocation of capital supports the activities of
the two licensed central counterparty clearing (CCP) subsidiaries
as discussed in note C1 and the two licensed settlement facilities

• Facilitating growth of the Group's exchange-traded and OTC
markets, and providing appropriate risk-adjusted returns to
shareholders

• Reflecting the risks associated with the Group's operations.

In accordance with the Group's objectives and policies, capital
represented by cash is invested at an appropriate liquidity profile,
taking into consideration the potential claims on that equity that
may arise from the Group's activities, predominantly CCP clearing.

The Group's objective is also to maintain its credit rating at the current
AA- long-term and A-1+ short-term as rated by Standard & Poor’s (S&P).

ASX Annual Report 2021 / Notes to the consolidated financial statements continued

Notes to the consolidated financial statements continued

Asset revaluation reserve
Changes in the fair value of investments in equity instruments are
recognised in the asset revaluation reserve. The cumulative gain or
loss that has been recognised within reserves is transferred directly
to retained earnings and is not recycled through profit or loss when
the associated equity instrument is sold.

The effective portion of gains or losses on assets designated as part
of a cash flow hedging relationship are recognised in the hedging
reserve, which is included within asset revaluation reserves. The
ineffective portion of a hedge is recognised directly in profit or loss.

As at 30 June 2021, the closing balance of the asset revaluation
reserve was ($11.3) million (2020: $0.1 million).

Equity compensation reserve
The equity compensation reserve is used to recognise the fair value
of performance rights issued under ASX equity plans.

As at 30 June 2021, the closing balance of the equity compensation
reserve was $19.0 million (2020: $17.8 million).

B5 Earnings per share

As at 30 June
Basic and diluted earnings
per share (cents)

Weighted average number of
ordinary shares used in calculating
basic and diluted earnings per share

2021

248.4

2020

257.6

193,591,795

193,587,739

The increase in the weighted average number of ordinary shares
reflects lower treasury shares held during the current financial
year. The basic and diluted earnings per share (EPS) amounts have
been calculated on the basis of net profit after tax of $480.9 million
(2020: $498.6 million).

Basic EPS is calculated by dividing the consolidated net profit after
tax attributable to the owners of the Company, excluding any costs of
servicing equity other than ordinary shares, by the weighted average
number of ordinary shares outstanding during the financial year,
adjusted for bonus elements in ordinary shares issued during the
year and excluding treasury shares.

Diluted EPS adjusts the figures used in the determination of basic EPS
to take into account the after income tax effect of interest and other
financing costs associated with dilutive potential ordinary shares,
and the weighted average number of additional ordinary shares that
would have been outstanding, assuming the conversion of all dilutive
potential ordinary shares.

Performance of the Group

(a) Ordinary share capital
Fully paid ordinary shares carry the right to participate in dividends.
Ordinary shares also entitle the holder to the proceeds on winding
up of the Company in proportion to the number of and amounts
paid on the shares held. Ordinary shares have no par value and
ASX does not have a limited amount of authorised capital. At 30
June 2021, all ordinary shares issued were fully paid. On a show
of hands, every holder of ordinary shares present in person or by
proxy, is entitled to one vote and upon a poll each share is entitled
to one vote.

As at 30 June 2021, the closing balance of ordinary share capital was
$3,027.2 million (2020: $3,027.2 million) and the number of shares
outstanding was 193,595,162 (2020: 193,595,162). There were no
movements in the balance of ordinary share capital or the number
of shares outstanding in the current or prior financial years.

Ordinary shares are classified as equity. Incremental costs directly
attributable to the issue of new shares or options are shown in equity
as a deduction from the proceeds, net of tax.

(b) Treasury shares
The following table presents the movement in treasury shares
during the financial year:

For the year ended 30 June

Opening balance
Issue of shares under the LTVR Plan

Purchase of LTVR Plan shares

Shares transferred to the LTIPT

Closing balance

2021
No. of shares

2020
No. of shares

7,221
(15,666)

10,444

2,027

9,844
(6,520)

3,897

7,221

Treasury shares are shares in ASX held by a trust for the benefit of
employees under the ASX Long-Term Variable Reward (LTVR) Plan
as described in the Remuneration Report. The original purchase
price of the shares, net of any tax effect, is deducted from the equity
compensation reserve in equity.

Shares allocated to employees under the Deferred Short-Term Variable
Reward (STVR) Plan are held as treasury shares when forfeited,
until such time that they are reallocated under another STVR Plan
or LTVR Plan.

(c) Reserves
The Group's reserves in equity includes the restricted capital reserve,
the asset revaluation reserve and the equity compensation reserve.

Restricted capital reserve
The restricted capital reserve was created when funds were
transferred from the National Guarantee Fund (NGF) to ASX
Clear Pty Ltd (ASX Clear) in 2005. At this point in time ASX
Clear started assuming the clearing participant default risk of
the clearing house. Under the terms of the transfer, ASX Clear
must not, without first obtaining the consent in writing of
the Assistant Treasurer (the Minister), take action to use these
funds for a purpose other than clearing support.

As at 30 June 2021, the closing balance of the restricted capital
reserve was $71.5 million (2020: $71.5 million).

76 ASX Annual Report 2021 / Notes to the consolidated financial statements continued

Notes to the consolidated financial statements continued

687.9

720.8

Net deferred tax asset

Performance of the Group

B6 Taxation
The movements during the year in the following components
of deferred tax asset and liability were recognised in profit or
loss, with the exception of revaluations of investments in equity
instruments and cash flow hedges, which were recognised in other
comprehensive income.

As at 30 June
(a) Income tax expense
Profit before income tax expense
Prima facie income tax expense calculated
at 30% (2020: 30%) on the profit before
tax

Movement in income tax expense due to:
Non-deductible items
Non assessable items
Equity accounted investments impairment
Research and development tax offset
Adjustments to current tax for
prior years
Total income tax expense

(b) Major components of income tax expense
Current tax expense
Movement in deferred tax liability
Movement in deferred tax asset
Adjustments to current tax for
prior years
Total income tax expense

Total

(d) Income tax on items recognised directly
in other comprehensive income
Revaluation of investments in equity
instruments – unlisted entities
Revaluation of cash flow hedges
Total

(e) Deferred tax asset

2021
$m

2020
$m

(206.4)

(216.2)

(2.2)
0.1
-
1.5

(2.6)
-
(4.6)
1.0

0.2

(207.0)

(222.2)

(205.5)
(6.8)
5.3

(221.7)
(2.5)
1.8

0.2

(207.0)

(222.2)

4.8

-
4.8

0.1

(0.1)

0.2
0.1

Deferred tax asset comprises the estimated future benefit at an income
tax rate of 30% (2020: 30%) of the below items:

Doubtful debts provisions
Employee entitlements provisions
Lease liabilities
Accrued expenses
Revenue received in advance
ECL allowance
Revaluation of investments in equity
instruments- unlisted entities
Deferred tax asset

0.2
10.8
21.7
1.4
55.7
0.1

4.8

94.7

0.2
10.1
24.3
1.4
48.2
0.1

84.3

As at 30 June

2021
$m

2020
$m

Deferred tax (liability) comprises the estimated future expense at an
income tax rate of 30% (2020: 30%) of the following items:

Fixed assets
Right-of-use assets
Revaluation of investments in equity
instruments – unlisted entities
LTVR Plan
Deferred tax (liability)

(27.0)
(19.3)

(0.3)
(46.6)

48.1

(16.6)
(22.5)

(0.1)

(0.3)
(39.5)

44.8

Income tax expense is recognised in profit or loss except to the extent
that it relates to items recognised in other comprehensive income
or directly in equity. In this case, the tax is also recognised in other
comprehensive income or directly in equity respectively. Income tax
expense recognised in profit or loss comprises current and deferred
income tax.

Current tax is the expected tax payable on the taxable income for the
year, using tax rates enacted or substantively enacted at the balance
sheet date, and any adjustment to tax payable in respect of previous
years. Current tax assets and tax liabilities are offset if there is a legally
enforceable right to offset and the Group intends to either settle on a
net basis, or to realise the asset and settle the liability simultaneously.

Deferred income tax is provided using the balance sheet liability
method, providing for temporary differences between the carrying
amounts of assets and liabilities for financial reporting purposes,
and the amounts used for taxation purposes. Deferred income tax is
not recognised for certain temporary differences such as the initial
recognition of goodwill.

The amount of deferred income tax is determined using tax rates
enacted or substantively enacted at the balance sheet date and
expected to apply when the related deferred income tax asset is
realised or the deferred income tax liability is settled.

A deferred tax asset is recognised only to the extent that it is
probable that future taxable amounts will be available against which
the asset can be utilised, and is reduced to the extent that it is no longer
probable that the related tax benefit will be realised.

Deferred tax assets and liabilities are offset if there is a legally
enforceable right to offset current tax liabilities and assets, and when
the deferred tax balances relate to income taxes levied by the same
tax authority.

Further information on the Group's tax obligations can be found in
the Tax Transparency Report available on ASX's website.

ASX Annual Report 2021 / Notes to the consolidated financial statements continued

Notes to the consolidated financial statements continued

Risk management

The Group is subject to a variety of risks including clearing and
settlement risk, and operational risk.

C1 Clearing risk
The Group undertakes CCP clearing and collects margins and other
balances (commitments) from clearing participants as security for
clearing risk undertaken.

Sub-sections (a) and (b) below discuss participants’ obligations and
the nature of collateral and commitments lodged, as well as ASX’s
recognition principles concerning these liabilities.

(a) Novation
The Group has two wholly owned subsidiaries that provide CCP
clearing services:

• ASX Clear Pty Limited (ASX Clear), which provides novation of

cash market securities and derivatives

• ASX Clear (Futures) Pty Limited (ASX Clear (Futures)), which

provides novation of both exchange-traded and OTC derivatives.

Transactions between two clearing participant organisations are
novated to the CCPs. This makes the CCPs contractually responsible
for the obligations entered into by clearing participants on both the
buying and selling legs of the same transaction. Through novation,
the respective CCP assumes the credit risk of the underlying clearing
participant in the event of a participant default. The novation process
results in all positions held by the CCPs being matched.

(b) Participants’ margins
Clearing participants are required to lodge an amount (initial margin)
on open cash market, derivative and OTC positions novated to
the Group’s CCPs. These margins are based on risk parameters
attached to the underlying security or contract at trade date and
may include additional margins called on participants. The margin
rates are subject to regulatory standards, including a high level of
confidence that they meet expected movements based on historical
events. However, there could be circumstances where losses are
greater than the margins held.

Clearing participants may lodge cash or certain equity and debt
securities to cover their margin obligations. In accordance with
Group policies, the cash lodged by participants may subsequently
be invested into approved products which are recognised as cash
or financial assets at amortised cost on the balance sheet. The
following table shows the form in which participants lodged margins
and commitments at 30 June. This excludes equity securities lodged
by participants which are not recognised on the balance sheet.

As at 30 June

Current
Cash

Debt securities

Total current amounts owing
to participants

Non-current
Cash commitments

Total non-current amounts owing
to participants

2021
$m

2020
$m

11,556.1

458.7

11,989.7

487.5

12,014.8

12,477.2

200.0

Total amounts owing to participants

12,214.8

12,677.2

Current amounts owing to participants represent collateral lodged
to cover margin requirements on unsettled derivative contracts and
cash market trades. Non-current amounts owing to participants
represent cash balances lodged by participants as commitments to
clearing guarantee funds, which at reporting date had no determined
repayment date.

Margins that are settled by cash or debt securities are recognised
on balance sheet at fair value and are classified as amounts owing
to participants within current liabilities. Balances lodged in cash are
interest bearing and are carried at the amounts deposited which
represent fair value. Margins that are settled by equity securities
are not recognised on balance sheet as the Group is not party to the
contractual provisions of the instruments other than in the event of
a default.

In addition to the initial margin, participants must also settle changes
in the fair value of derivatives contracts (variation margin), and in
certain circumstances must lodge additional margins. Participants
must settle both initial and variation margins daily, including
possible intraday and additional margin calls. The amounts owing
to participants are repayable on settlement or closure of the
contracts.

In the event of default by a clearing participant, ASX Clear and ASX
Clear (Futures) are required to provide funds or settle securities of
the defaulting participant. The CCPs also have the authority to retain
collateral and commitments deposited by the defaulting clearing
participant to satisfy its obligations. Clearing participants lodged
the following collateral and commitments at 30 June:

As at 30 June 2021
Cash

Debt securities

Total amounts owing to
participants

ASX Clear
$m
971.3

ASX Clear
(Futures)
$m
10,784.8

458.7

Total
$m
11,756.1

458.7

971.3

11,243.5

12,214.8

Equity securities¹

3,443.5

As at 30 June 2020
Cash

Debt securities

Total amounts owing to
participants

1,286.4

10,903.3

487.5

12,189.7

487.5

1,286.4

11,390.8

12,677.2

Equity securities¹
¹ Equity securities are not recognised on the balance sheet.

3,191.4

78 ASX Annual Report 2021 / Notes to the consolidated financial statements continued

Notes to the consolidated financial statements continued

Risk management

All net delivery and net payment obligations relating to cash market
and derivative securities owing to or by participants as at 30 June
2021 were subsequently settled.

(c) Financial resources available to CCPs
The Financial Stability Standards require each CCP to have adequate
financial resources to cover its exposures in the event of default by
the two participants and their affiliates that would potentially cause
the largest aggregate credit exposure for the CCP in extreme but
plausible market conditions. Financial resources include the clearing
default funds shown in the next two tables as well as eligible
collateral and commitments. The level of clearing default funds
which the CCPs must maintain may therefore increase from time
to time. The Financial Stability Standards also require each CCP to
have a process for replenishing clearing default funds after depletion
caused by a default loss. The replenished fund, which may be less
than the original fund, is then available to support new activity post
the loss. To comply with this obligation, the Group has undertaken,
in certain circumstances, to provide funds up to pre-determined
levels for replenishment of the clearing default funds. The Group
may utilise a number of alternative funding sources to contribute
to an increase in, or replenishment of, the CCPs’ clearing default
funds, including its own cash reserves. In certain circumstances
participants may have an obligation to the CCP to contribute to an
increase in, or replenishment of, the clearing default funds.

The CCPs’ operating rules also provide for the CCPs to undertake
certain actions to deal with events of default and utilisation of
collateral, commitments and clearing default funds. These include
the ability to call recovery assessments, impose payment reductions
or implement termination of positions.

The following tables show the financial resources available to the
CCPs to support their clearing activities (over and above the collateral
lodged by participants).

ASX Clear

As at 30 June
Restricted capital reserve

Equity provided by the Group

Paid-in resources
Recovery assessments

Total financial resources

2021
$m
71.5

178.5

250.0
300.0

550.0

2020
$m
71.5

178.5

250.0
300.0

550.0

The financial resources at 30 June 2021 available to ASX Clear in the
event of a participant default would be applied in the following order:

1. Collateral and other margins lodged by the defaulting

participant

2. Restricted capital reserve of $71.5 million

3. Equity capital of $178.5 million

4. Contributions lodged by non-defaulting participants under the
ASX Clear operating rules (no contributions were lodged in
the current or prior year)

5. Recovery assessments of $300.0 million which can be levied
on participants (no amounts were levied in the current or
prior year).

ASX Clear (Futures)

As at 30 June
Equity provided by the Group

Cash commitments

Equity provided by the Group

Cash commitments

Equity provided by the Group

Paid-in resources
Recovery assessments1

2021
$m
120.0

100.0

150.0

100.0

180.0

650.0
200.0

2020
$m
120.0

100.0

150.0

100.0

180.0

650.0
200.0

Total financial resources
850.0
1 $200 million for a single default event and up to $600 million for more than

850.0

one default event.

The financial resources at 30 June 2021 available to ASX Clear
(Futures) in the event of a participant default would be applied in
the following order:

1. Collateral and commitments lodged by the defaulting participant

2. Equity capital of $120.0 million

3. Commitments lodged by non-defaulting participants, totalling
$100.0 million less the defaulting participants' commitments
included in item 1 above

4. Equity capital of $150.0 million

5. Commitments lodged by participants, totalling $100.0 million

6. Equity capital of $180.0 million

7. Recovery assessments of $200.0 million which can be levied on
participants (no amounts were levied in the current or prior year).

The order of application with respect to items 3 and 5 above will
depend on the market in which the defaulting participant operates.
If the defaulting participant is a futures participant, then item 3
will comprise the cash commitments lodged by non-defaulting
futures participants and item 5 will comprise the cash commitments
lodged by OTC participants. If the defaulting participant is an OTC
participant, then item 3 will comprise the cash commitments
lodged by non-defaulting OTC participants and item 5 will comprise
the cash commitments lodged by futures participants. If the
defaulting participant is both a futures and OTC participant, then
the non-defaulting participants' commitments are apportioned
for items 3 and 5.

C2 Cash
The cash balance is comprised of the Group’s own cash funds as
well as cash collateral and commitments lodged by participants
in accordance with note C1 that has not been invested in debt or
money market instruments.

As at 30 June
Cash at bank and on hand

Overnight cash deposits

Total cash

2021
$m
4,968.1

389.7

5,357.8

2020
$m
468.6

389.5

858.1

Cash comprises cash on hand and deposits with banks that can be
withdrawn with no or minimal notice.

ASX Annual Report 2021 / Notes to the consolidated financial statements continued

Notes to the consolidated financial statements continued

Risk management

C3 Financial risk
The Group’s activities expose it to a variety of financial risks including
market risk (comprising interest rate, foreign currency and equity
price risk), credit risk and liquidity risk.

The Group’s overall risk management strategy seeks to manage
potential adverse effects on the financial performance of the Group.
Risk management is carried out under policies approved by the
Board of Directors. Management monitors investment credit, foreign
currency, liquidity and cash flow interest rate risk, and manages
clearing default credit risk with counterparties in accordance with
approved Board mandates with ongoing reporting to the respective
boards.

The Group holds the following financial assets and liabilities by
category:

As at 30 June

Financial assets at amortised cost
Cash

Trade and other receivables

Note

Other financial assets at amortised cost

– Reverse repurchase agreements

– NCDs

– P-Notes

– T-Notes

2021
$m

5,357.8

362.6

4,728.4

774.5

1,787.5

275.0

2020
$m

858.1

761.6

6,617.2

923.6

4,179.3

791.3

Financial assets at FVTPL
Non-cash collateral

Financial assets at FVTOCI
Investments in equity instruments

Total financial assets

Financial liabilities at amortised cost
Trade and other payables¹

Amounts owing to participants

Lease liabilities

458.7

487.5

41.8

45.1

13,786.3

14,663.7

325.0

719.2

12,214.8

12,677.2

72.4

81.1

Total financial liabilities
1 Excludes transaction taxes payable which are not financial instruments as

12,612.2

13,477.5

they are statutory obligations.

The maximum exposure to credit risk at the end of the reporting
period for each class of financial asset, other than amounts owing
to participants, is the carrying amount as detailed in the previous
table. If the financial asset is attributed to participants’ collateral,
the maximum credit exposure to ASX is $75 million per counterparty.
However, if it is attributed to ASX’s own financial resources, the
maximum credit exposure is the carrying amount of the financial asset.

Financial liabilities and financial assets, other than trade receivables
without a significant financing component, are initially measured at
fair value. This includes transaction costs that are directly attributable
to the acquisition of the asset or issue of the liability for financial
assets and liabilities not at FVTPL. Financial liabilities are subsequently
measured at amortised cost while financial assets are subsequently
measured in accordance with one of the following categories.

Amortised cost – this includes financial assets managed under a
business model to hold the assets in order to collect the contractual
cash flows (CCFs) and those cash flows represent solely payments
of principal and interest (SPPI). Interest income from these financial
assets is included in interest income using the effective interest rate
method. Any gain or loss arising on derecognition is recognised directly
in profit or loss. Impairment losses are included within administration
expense in the statement of profit or loss.

FVTOCI – this includes financial assets managed under a business
model to sell the assets and collect the CCFs and those cash flows
that represent SPPI. Fair value gains or losses are recognised directly
in the asset revaluation reserve in equity. Any cumulative gain or
loss recognised in equity is subsequently reclassified to profit or loss
on disposal. Interest income from these financial assets is included
in interest income using the effective interest rate method. An
irrevocable election can also be made to measure certain investments
in equity instruments at FVTOCI on initial recognition. In this case, fair
value gains or losses are recognised directly in the asset revaluation
reserve in equity. Gains or losses are not reclassified to profit or loss
on disposal but remain in equity.

FVTPL – this includes financial assets that do not meet the criteria
to be measured at amortised cost or FVTOCI. Any fair value gains or
losses are recognised in profit or loss.

Refer to the relevant note for further details of the accounting policies
for trade and other receivables, convertible notes and investments
in equity instruments.

Reverse repurchase agreements are measured at the amount of the
cash consideration paid. The securities purchased under the agreement
are not recognised on the balance sheet, as substantially all the risks
and rewards of ownership are retained by the counterparty to the
agreement.

Interest income comprises interest earned on the Group’s own funds,
as well as interest earned from the investment of funds lodged by
participants as collateral. Interest income is recognised using the
effective interest rate method.

Interest expense is recognised as a finance cost in the statement
of comprehensive income using the effective interest rate method.

80 ASX Annual Report 2021 / Notes to the consolidated financial statements continued

Notes to the consolidated financial statements continued

Risk management

(a) Market risk
Market risk is the risk of loss arising from movements in observable market variables such as interest rates, foreign exchange rates and
other market prices.

(i) Interest rate risk

Exposure arising from
Variable rate cash investments and money
market instruments expose the Group to cash
flow interest rate risk.

Risk management
• The Boards of the relevant subsidiaries have set limits with respect to maximum and weighted

average maturity and value at risk.

• Managed by policies that enable the Group to pay a variable rate of interest to participants on the

funds held.

Interest bearing assets is comprised of the investment of the Group’s cash resources (participant collateral lodged in cash and Group
funds). Interest bearing liabilities is comprised of cash collateral and commitments lodged by participants and finance leases. Non-cash
collateral lodged by participants is non-interest bearing.

The Group’s trade and other receivables, investments in equity instruments, and trade and other payables are non-interest bearing so
are therefore not subject to interest rate risk, since neither the carrying amount nor the future cash flows will fluctuate (directly) due to
a change in market interest rates.

The following table presents the Group’s interest bearing financial assets and liabilities at 30 June.

As at 30 June

Interest bearing financial assets
Cash

Other financial assets at amortised cost

Total interest bearing financial assets
Weighted average interest rate at period end

Interest bearing financial liabilities
Amounts owing to participants

Lease liabilities

Total interest bearing financial liabilities
Weighted average interest rate at period end

Floating
interest
rate
$m

5,357.8

5,357.8
0.02%

12,214.8

12,214.8
(0.34%)

2021

Fixed
interest
rate
$m

7,565.4

7,565.4
0.05%

Total
$m

5,357.8

7,565.4

12,923.2

Floating
interest
rate
$m

858.1

858.1
0.18%

12,214.8

12,677.2

72.4

72.4
4.01%

72.4

12,287.2

12,677.2
(0.11%)

2020

Fixed
interest
rate
$m

12,511.4

12,511.4
0.48%

81.1

81.1
4.04%

Total
$m

858.1

12,511.4

13,369.5

12,677.2

81.1

12,758.3

Net interest bearing financial (liabilities)/assets

(6,857.0)

7,493.0

636.0

(11,819.1)

12,430.3

611.2

With respect to the above table:

• Floating interest rate refers to financial instruments where the interest rate is subject to change prior to maturity or repayment –

predominantly deposits at call. The floating interest rate of (0.34%) (2020: (0.11%)) for interest bearing financial liabilities represents
the net of the interest paid and the Futures Client charge revenue on participant balances

• Fixed interest rate refers to financial instruments where the interest rate is fixed up to maturity – predominantly NCDs, P-Notes,
T-Notes, reverse repurchase agreements and finance leases. The fixed interest rate of 4.01% (2020: 4.04%) for interest bearing
financial liabilities represents the weighted average incremental borrowing rate applied for evaluating the present value of leases
under AASB 16 Leases. The range of interest rates applied on the Group’s leases is between 3.10% and 4.30% (2020: 3.10% to 4.30%).
Refer to note E6 for additional details on accounting treatment and policy.

Sensitivity analysis (net of tax)
Changes in interest rates affect the Group's profit or loss due to higher/lower interest income earned on its cash and other financial assets
at amortised cost and higher/lower interest paid to clearing participants.

An analysis of this sensitivity and its impact on the Group's profit or loss and equity net of tax for the year is provided in the following
table. The analysis is based on a hypothetical 25 basis point change in interest rates at 30 June, and has been applied to the interest rate
risk exposures that exist at that date. All other variables have been held constant.

ASX Annual Report 2021 / Notes to the consolidated financial statements continued

Notes to the consolidated financial statements continued

Risk management

+25 basis point change in interest rates

-25 basis point change in interest rates

2021

2020

Impact on profit
$m
0.4

(0.4)

Impact on profit
$m
(1.7)

1.7

Changes in interest rates affect the Group’s profit or loss due to interest income earned on the Group’s own cash resources and treasury
earnings on clearing participants' balances, offset by interest paid to clearing participants on margins lodged. The interest earned side
references a range of rates such as BBSW, while the interest paid side references overnight cash rates. ASX is exposed to the movement
between these two rates. The table above assumes overnight cash rates and BBSW rates move in line.

(ii) Foreign currency risk

Exposure arising from
Cash flow commitments in foreign currencies
entered into by the Group.

Risk management
• Where the Group enters into material cash flow commitments in foreign currencies, its policy is to

enter into hedging arrangements to mitigate the exchange risk where possible.

Collateral on clearing participants’ derivatives
exposures lodged in foreign currency and held
by the Group's CCPs.

• The collateral held in foreign currency is offset by an equal payable in the same currency to the

participant, which reduces foreign currency risk in the normal course of business. Where non-matching
currency is lodged as collateral, a discount is applied to its value.

The majority of the Group’s net foreign currency risk is associated with foreign denominated cash, net interest income and exchange fees
receivable. Such exposure is converted to AUD on a regular basis. Investments in equity instruments denominated in USD are subject to
foreign currency risk, impacting their carrying value.

The following table shows the Group’s exposure on its balance sheet to foreign currency risk at the end of the year, expressed in AUD.

As at 30 June

Financial assets
Cash

NZD
$m

2021

USD
$m

EUR
$m

JPY
$m

188.6

45.8

0.2

1.4

Trade and other receivables

Other financial assets at amortised cost

Investment in equity instruments

Financial liabilities

Amounts owing to participants

Net exposure

0.8

48.1

233.6

3.9

31.8

44.0

33.6

0.2

1.4

NZD
$m

123.0

0.8

52.9

173.6

3.1

2020

USD
$m

46.7

45.1

23.1

68.7

EUR
$m

51.0

0.1

49.0

2.1

Exchange rate for conversion AUD 1:

1.0744

0.7512

0.6314

83.03

1.0698

0.6856

0.6114

JPY
$m

1.5

73.86

Sensitivity analysis (net of tax)
Changes in exchange rates affect the Group's profit or loss due to the gain/loss recognised on translation of foreign currency denominated
financial assets, other than financial assets at FVTOCI and all foreign currency denominated financial liabilities at balance date. Equity
is affected due to USD foreign currency cash flow commitments designated as cash flow hedges and the valuation of foreign currency
equity investments.

An analysis of this sensitivity and its impact on the Group's profit or loss and equity net of tax for the year is provided in the following
table. The analysis is based on a hypothetical 10% change in the market exchange rate of the AUD against other currencies at 30 June,
and has been applied to the foreign currency risk exposures that exist at that date. All other variables, including interest rates, have been
held constant. The impact is expressed in AUD.

+10% strengthening of AUD

-10% weakening of AUD

2021

2020

Impact on profit
$m
(0.5)

Impact on equity
$m
(2.3)

Impact on profit
$m
(0.4)

Impact on equity
$m
(4.9)

0.5

2.3

0.4

4.9

82 ASX Annual Report 2021 / Notes to the consolidated financial statements continued

Notes to the consolidated financial statements continued

Risk management

Cash flow hedges
At 30 June 2021, the Group had designated cash at bank of USD 1.3 million (2020: USD 15.7 million) as the hedging instrument in qualifying
cash flow hedges for committed expenditure to be paid in USD. These amounts are included within cash on the balance sheet. The cash
flows are 100% hedged and the weighted average hedged rate during the year was AUD 1: USD 0.6862 (2020: AUD 1: USD 0.7402). During
the current financial year, the use of cash flow hedges resulted in $1.4 million more (2020: $1.1 million less) in cash flow required for
committed capital and operating expenses when compared to the spot rate when those payments were made.

The following table shows the movement in the Group's hedge reserves.

For the year ended 30 June

Opening balance at 1 July
Revaluation of hedging instrument

Less: deferred tax

Closing balance at 30 June

2021
$m

-
(0.1)

(0.1)

2020
$m

0.5
(0.7)

0.2

At the inception of the hedging transaction, the Group documents the relationship between hedging instruments and hedged items, as well as
its risk management objective and strategy for undertaking various hedge transactions. The Group documents its assessment, both at hedge
inception and also on an ongoing basis, of whether the hedging relationship meets the following effectiveness requirements:

• There is an economic relationship between the hedged item and the hedging instrument

• Credit risk does not dominate the value changes that result from that economic relationship

• The hedge ratio is the same as that resulting from the actual quantity of both the item hedged and the hedging instrument used.

For cash flow hedges, the effective portion of any change in the fair value of the instrument that is designated and that qualifies as a cash flow
hedge is recognised in the hedge reserve in equity. The gain or loss relating to the ineffective portion is recognised immediately in profit or loss.

At the time the hedged item affects the income statement or when the hedged item is no longer expected to occur, the cumulative gain or loss
recognised in the hedge reserve is taken to finance costs in the income statement.

(iii) Price risk

Exposure arising from
Other price movements associated with
underlying equities and derivatives on trades
novated to the CCPs.

Risk management
• Under normal circumstances, this risk is minimal as the trades are matched. However price

movements may impact on credit risk associated with participant obligations (as discussed in
the following section).

ASX Annual Report 2021 / Notes to the consolidated financial statements continued

Notes to the consolidated financial statements continued

Risk management

(b) Credit risk

Exposure arising from
Through its CCP activities, the Group is exposed
to the potential loss that may arise from the
failure of a counterparty to meet its obligations
or commitments. The obligations mainly relate
to T+2 settlement risk for cash market trades
and daily mark-to-market movements on
open derivative positions. Failure of clearing
participants to meet these obligations exposes
the Group to potential losses.

Investment counterparty credit risk arises on
certain financial assets including cash, other
financial assets at amortised cost and trade
and other receivables.

Risk management
• Clearing participant membership requirements and admission standards, including minimum capital

requirements.

• Participant surveillance, including capital monitoring.
• Daily and intraday counterparty credit risk control, including margining and collateral management.
• Position limits based on the capital of the participant.
• Financial resource adequacy, including fixed capital and stress-testing of clearing participants’

exposure limits against the amount and liquidity of variable and fixed financial resources available.
• Operating rules that deal with recovery and resolution of losses in the event of a clearing participant

default. Refer to note C1(c).

• Initial margin calls outside of Australian business hours.
• Board policies that limit the amount of credit exposure and concentration to any one counterparty, as
well as minimum credit ratings for counterparties. Investments are limited to non-derivative assets.

• Investment loss rules that address the allocation of losses between the Group and clearing

participants.

• Active debt collection procedures and regular review of trade receivables ageing.

The Group’s ongoing monitoring of participants’ market positions and exposures, coupled with daily margining and collateral management,
including possible intraday and additional margin calls, enable it to manage its central issuer credit risk and meet its regulatory obligations.
Further information on the resources available to the CCPs in the event of a participant default is shown in note C1.

S&P credit ratings are used in determining the credit quality of the counterparty/issuer with whom cash and other financial assets at
amortised cost are secured.

Counterparties are limited to the Commonwealth of Australia, Australian state governments and banks, and foreign governments and
banks with a minimum short-term credit rating of A2. The Group’s largest single exposure at the end of the current and prior reporting
period was the Commonwealth of Australia. The risk ratings of the counterparties that the Group has exposure to at the end of the period
are shown in the following table.

As at 30 June
Cash at bank and on hand

Overnight cash deposits

Total cash
Reverse repurchase agreements¹

NCDs

P-Notes

T-Notes

Total other financial assets at amortised cost
Bonds (lodged by participants)

2021

2020

A-1+
$m
4,926.9

182.3

5,109.2
4,728.4

474.8

1,787.5

275.0

7,265.7
458.7

A-1
$m
41.2

207.4

248.6
-

299.7

299.7
-

Total
$m
4,968.1

389.7

5,357.8
4,728.4

774.5

1,787.5

275.0

7,565.4
458.7

A-1+
$m
438.1

193.0

631.1
6,617.2

489.4

4,179.3

791.3

12,077.2
487.5

A-1
$m
30.6

196.4

227.0
-

434.2

434.2
-

Total
$m
468.7

389.4

858.1
6,617.2

923.6

4,179.3

791.3

12,511.4
487.5

458.7
Total financial assets at FVTPL
1 Reverse repurchase agreements are collateralised by Commonwealth, foreign government or Australian state government securities.
Prior period balances for reverse repurchase agreements have been restated to reflect the credit rating of the exposure of the underlying security rather than the

458.7

487.5

counterparty.

The Group uses other measures to monitor the credit of other financial assets, which include trade and other receivables, margins
receivable from participants, accrued revenue, interest receivable and investments in equity instruments. Intercompany receivables
consist of balances owing between the entities of the Group and are eliminated on consolidation. The parent entity considers the credit
risk on these balances to be low. The maximum exposure to credit risk for these financial assets is the carrying value as at reporting date.

84 ASX Annual Report 2021 / Notes to the consolidated financial statements continued

Notes to the consolidated financial statements continued

Risk management

(i) Impairment of financial assets
The Group has the following financial assets that are subject to
impairment:

• Trade and other receivables

• Other financial assets at amortised cost.

Trade receivables
The Group has used the simplified approach for measuring expected
credit losses for trade receivables whereby the lifetime ECL is
recognised. To measure the loss allowance, the receivables have
been grouped based on the number of days overdue. ECL rates have
been determined for each group based on historical credit losses.
These historical rates are adjusted to reflect current and forward
looking information on macroeconomic factors that affect the ability
of customers to settle the receivables. These rates have been applied
to the gross carrying value of trade receivables to calculate the loss
allowance. Where this calculation results in an immaterial amount
no loss allowance is recognised. A loss allowance is also recognised
for any debtors individually identified as being credit impaired.

The following table shows the aged analysis for gross trade
receivables of the Group.

As at 30 June
Not past due

Past due 0-30 days

Past due 31-60 days

Past due 61-90 days

Past due 91 days and over

Trade receivables

2021
$m
96.0

1.0

0.4

0.8

99.0

2020
$m
102.9

2.2

0.5

1.4

107.5

As at 30 June 2021, the Group provided $0.5 million (2020: $0.7
million) for trade receivables that were identified as being impaired.

The Group recognised $0.2 million (2020: $0.3 million) of impairment
loss in profit or loss during the year.

The movement in the loss allowance for trade receivables is as
follows:

For the year ended 30 June

Opening loss allowance at 1 July
Increase in loss allowance recognised in
profit or loss during the year

Amounts written off during the year

Loss allowance subsequently reversed

Closing balance at 30 June

(0.7)

(1.0)

0.4

0.8

(0.5)

(0.9)

(1.1)

0.5

0.8

(0.7)

Cash and other receivables
Other receivables includes margins receivable, accrued revenue,
interest receivable and other debtors. A default event in relation
to margin obligations is defined in the ASX Clear and ASX Clear
(Futures) operating rules. No loss allowance has been recognised for
cash and other receivables as the assessed amount is immaterial.

Other financial assets at amortised cost
The ECL model for the Group's debt and money market instruments
is based on the probability of default, loss given default and the
Group's exposure to the counterparty. The probability of default
is based on historical default rates and has been sourced from an
external study of global corporate defaults by S&P. These rates have
been adjusted for the loss given default to calculate the ECL rate.

The following tables show the gross carrying amounts of the other
financial assets at amortised cost and the ECL rates that have been
applied to determine the carrying amount net of the ECL allowance.

As at 30 June 2021

S&P long-
term credit
rating
AAA

AA+

AA-

A+

ECL rate
-

0.02%

0.03%

0.05%

As at 30 June 2020

S&P long-
term credit
rating
AAA

AA+

AA-

A+

ECL rate
-

0.02%

0.03%

0.05%

Gross carrying
amount
$m
4,955.4

ECL loss
allowance
$m
-

Net carrying
amount
$m
4,955.4

1,635.6

200.0

474.9

149.9

150.0

7,565.8

(0.1)

(0.2)

(0.4)

1,635.6

200.0

474.8

149.8

7,565.4

Gross carrying
amount
$m
9,078.1

ECL loss
allowance
$m
-

2,456.9

52.9

489.5

209.7

224.7

12,511.8

(0.1)

(0.2)

(0.4)

Net carrying
amount
$m
9,078.1

2,456.9

52.9

489.4

209.6

224.5

12,511.4

The ECL rates have been applied to the gross carrying values of
the Group's debt and money market instruments held at amortised
cost as at 30 June. There were no material movements in the loss
allowance for the current or prior years. A reconciliation of the loss
allowance is provided in the following table.

For the year ended 30 June
Opening loss allowance at 1 July
Increase in loss allowance recognised in
profit or loss during the year
Closing loss allowance at 30 June

2021
$m
0.4

0.4

2020
$m
0.4

0.4

There were no significant changes to estimation techniques or
assumptions made during the reporting period.

The debt and money market instruments are all considered to have
low credit risk at the reporting date as all counterparties have an
S&P long-term credit rating of A or higher. The credit risk for these
financial assets has not increased significantly since the prior year
and the impairment allowance is measured at an amount equal to
12-month expected credit losses.

ASX Annual Report 2021 / Notes to the consolidated financial statements continued

Notes to the consolidated financial statements continued

Risk management

Impairment
The Group recognises a loss allowance on financial assets at amortised cost using a three stage approach as described in the below table.

Stage

Stage 1

Stage 2

Stage 3

Credit risk

No significant increase since initial recognition

Significant increase since initial recognition

Asset is credit impaired

Recognition of ECL

12 month ECLs

Lifetime ECLs

A simplified approach for measuring the loss allowance is applied for trade receivables where the lifetime ECLs are recognised. Loss rates for
trade receivables are determined based on historical loss rates over a four-year period and are adjusted for current and forward looking
macroeconomic factors that may affect the customers' ability to settle the receivable.

Assets are credit impaired when there is objective evidence that the Group will not be able to collect all of the original amounts due.

The collectability of trade receivables is reviewed on a regular basis. Debts known to be uncollectable are written off by reducing the carrying
amount directly. Other financial assets are written off when there is no reasonable expectation of recovery. Indicators that this may be the case
include the debtor entering bankruptcy or failure to enter into a payment plan.

Impairment losses are recognised in the statement of comprehensive income in administration expenses.

(c) Liquidity risk
Exposure arising from
Margins to cover derivatives and cash market
exposures are settled with participants and
invested in the short-term money market on a
daily basis. The investment of these balances
requires strict management to provide sufficient
liquidity for the routine daily margin settlement.

Risk management
• The Board has implemented policies that specify liquidity requirements, based on whether assets can
be liquidated and converted to cash on a same-day basis, including maximum average maturity limits.
Instruments that are eligible for repurchase agreements with the Reserve Bank of Australia are treated
as liquid.

• Forward planning and forecasting of liquidity requirements.

The expected undiscounted contractual cash flows of the Group's financial assets and liabilities are shown in the following table. All other
financial assets at amortised cost are eligible for repurchase in the secondary market. All financial assets and liabilities are non-derivative.

The values on the balance sheet may differ to the assets and liabilities in the following table due to the difference in fair value at balance
date compared to the contractual cash flows up to maturity.

Up to
1 month
$m

>1 month
to 3 months
$m

>3 months
to 1 year
$m

>1 year
$m

No specific
maturity
$m

As at 30 June 2021

Financial assets
Cash

Other financial assets at amortised cost

Financial assets at FVTPL

Trade and other receivables

Investments in equity instruments

Total financial assets

Financial liabilities
Trade and other payables

Amounts owing to participants

Lease liabilities

Total financial liabilities

Commitments
Capital and operating commitments

Total commitments

5,357.8

5,456.2

458.7

355.6

955.3

1.9

1,155.0

5.1

11,628.3

957.2

1,160.1

306.0

12,014.8

1.0

12,321.8

7.5

7.8

2.2

10.0

3.1

10.3

9.3

19.6

17.7

73.1

53.9

Total
$m

5,357.8

7,566.5

458.7

362.6

41.8

13,787.4

325.0

12,214.8

85.6

41.8

0.9

200.0

200.9

12,625.4

82.2

86 ASX Annual Report 2021 / Notes to the consolidated financial statements continued

Notes to the consolidated financial statements continued

Risk management

As at 30 June 2020

Financial assets
Cash

Other financial assets at amortised cost

Financial assets at FVTPL

Trade and other receivables

Investments in equity instruments

Total financial assets

Financial liabilities
Trade and other payables

Amounts owing to participants

Lease liabilities

Total financial liabilities

Commitments
Capital and operating commitments

Total commitments

Up to
1 month
$m

>1 month
to 3 months
$m

>3 months
to 1 year
$m

>1 year
$m

No specific
maturity
$m

858.1

4,095.0

487.5

756.0

6,196.6

698.5

12,477.2

1.0

13,176.7

1.0

6,797.0

2.5

1,629.6

3.1

6,799.5

1,632.7

19.9

2.1

22.0

5.8

9.5

18.3

84.9

60.0

45.1

0.8

200.0

200.8

Total
$m

858.1

12,521.6

487.5

761.6

45.1

14,673.9

719.2

12,677.2

97.5

13,493.9

85.1

While amounts owing to participants may have contractual cash flows greater than one month, they have been classified as having
maturities up to one month on the basis of the shortest possible obligation for repayment.

(d) Fair value measurements

(i) Financial instruments at fair value
The following table presents the Group’s financial assets measured at fair value at 30 June. The Group does not have any financial liabilities
measured at fair value.

As at 30 June

Financial assets
Investments in equity instruments

Financial assets at FVTPL

Total financial assets

2021

2020

Level 1
$m

Level 2
$m

Level 3
$m

Total
$m

Level 1
$m

Level 2
$m

Level 3
$m

399.7

59.0

41.8

458.7

500.5

305.5

182.0

45.1

Total
$m

45.1

487.5

532.6

There were no transfers between levels for recurring measurements during the year. The Group did not measure any financial assets at
fair value on a non-recurring basis at 30 June in the current or prior year.

The classification of financial instruments within the fair value hierarchy and the valuation techniques used to determine their values are
detailed below.

Level 1
Level 1 inputs are unadjusted quoted prices in active markets at the measurement date for identical assets and liabilities. Financial
instruments included in this category are Australian Government bonds. The fair value of Australian Government bonds are determined
by reference to readily observable quoted prices for identical assets in active markets.

Level 2
Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (as
prices) or indirectly (derived from prices). Financial instruments included in this category include semi-government bonds as their fair
values are determined using observable market prices for identical assets that were not actively traded.

Level 3
Level 3 inputs are based on unobservable market data. The fair values of the Group's unlisted equity investment and convertible note at
FVTPL are determined using unobservable inputs and therefore are classified as Level 3 instruments.

ASX Annual Report 2021 / Notes to the consolidated financial statements continued

Notes to the consolidated financial statements continued

Risk management

(ii) Financial instruments at amortised cost
The Group has a number of financial instruments which are not
measured at fair value on the balance sheet. The carrying amounts
of current trade and other receivables, cash, term deposits, reverse
repurchase agreements, current trade and other payables, and
current amounts owing to participants are assumed to approximate
their fair value due to their short-term nature. The carrying amount
of non-current amounts owing to participants approximates their
fair value as the impact of discounting is not significant.

The investment in Digital Asset (DA) is classified as a Level 3 fair value
instrument as it is an unlisted entity, valued using unobservable
inputs. The fair value of ASX's investment in DA as at 30 June 2021
has been determined using the share price from DA’s latest equity
fund raising completed in May 2021. DA’s share price decreased by
USD $4.90 per share from the previous fund raising, resulting in a
USD 9 million decrease in the carrying value of ASX's investment
in the current year. This fair value loss is recognised in other
comprehensive income

The table below presents other financial assets at amortised cost
(excluding those mentioned above) had they been measured on a
fair value basis.

As at 30 June
NCDs

P-Notes

T-Notes

Total

2021
$m
774.9

1,787.6

275.0

2,837.5

2020
$m
924.8

4,183.7

791.6

5,900.1

The fair values of the above financial assets are determined in
accordance with the Level 2 fair value hierarchy described in note
C3(d)(i).

(iii) Level 3 fair value instruments
The following table presents the changes in Level 3 fair value
instruments during the year:

For the year ended 30 June

Opening balance at 1 July 2020
Additions

Price revaluation:

– Recognised in equity

– Recognised in deferred tax

FX revaluation loss:

– Recognised in equity

– Recognised in deferred tax

Closing balance at 30 June 2021

Opening balance at 1 July 2019
Additions

Disposals

FX revaluation gain:

– Recognised in equity

– Recognised in profit or loss

– Recognised in deferred tax

Investments
in unlisted
entities1
$m

Investments
at FVTPL2
$m

45.1
12.8

(8.2)

(3.5)

(3.1)

(1.3)

41.8

24.3
20.5

0.2

0.1

-
-

5.3
-

(5.4)

0.1

Total
$m

45.1
12.8

(8.2)

(3.5)

(3.1)

(1.3)

41.8

29.6
20.5

(5.4)

0.2

0.1

Closing balance at 30 June 2020
1 The revaluation gain/(loss), net of tax, has been recognised within the asset

45.1

revaluation reserve. Refer to note D1 for further details.

2 The gain, net of tax, has been recognised within administration expenses in

the statement of comprehensive income.

(e) Enforceable netting arrangements
There are no financial assets and financial liabilities recognised on a
net basis. In the event that a clearing participant defaults and ASX
assumes open positions under novation, ASX’s policy is to recognise
the net open positions where it has the right to offset exposures.

In the event that a clearing participant defaults, ASX may utilise
collateral and commitments lodged by that participant to offset
net losses realised from the close-out of positions. While ASX has
the right to offset this collateral from the open position, its policy
is to only offset following the close-out. The aggregate amount of
collateral and commitments lodged by participants at 30 June 2021
was $12,214.8 million (2020: $12,677.2 million).

Investments

D1 Investments in equity instruments

Investments in unlisted entities

Total investments in equity
instruments

2021
$m

41.8

2020
$m

45.1

The investments in equity instruments have been designated
at FVTOCI on initial recognition. The election to measure the
investments at FVTOCI rather than FVTPL has been made because
the Group considers this to be more relevant as they are held for
strategic purposes.

The investments are initially recognised at fair value, being
the consideration given plus transaction costs that are directly
attributable to acquiring the asset. After initial recognition, they
continue to be measured at fair value and any fair value gains or
losses are recognised directly in the asset revaluation reserve in
equity. Any gains or losses on disposal remain within equity.

The fair value of investments in unlisted entities is determined
by reference to unobservable market data at balance date. Refer
to note C3(d)(iii).

Dividend income is recognised when the right to receive the dividend
has been established.

Key judgments
The Group has applied judgment in determining if it has significant
influence or control over the investees and has concluded that it does
not have significant influence over any of its investees, as it holds
less than 20% of the voting power and does not have the power to
participate in financial and operating policy decisions.

88 ASX Annual Report 2021 / Notes to the consolidated financial statements continued

Notes to the consolidated financial statements continued

Investments

(a) Investments in unlisted entities
As at 30 June 2021, ASX held 5.6% (2020: 8.2%) equity interest
in Digital Asset (DA). DA specialises in developer tools and smart
contract applications with its own purpose built programming
language which can be used in conjunction with distributed ledgers
and traditional databases.

In July 2020, ASX invested a further $2.9 million (USD 2.0 million)
in DA using the same pre-money valuation and pricing as in the
previous series C funding round completed pre-30 June 2020. This
additional investment increased ASX’s shareholding in DA to 8.7%.

In May 2021, DA completed a series D funding which ASX did not
take part in. The Group's shareholding in DA was diluted to 5.6%.

In May 2021, ASX invested $10 million to acquire a 9.8% shareholding
in DSMJ Pty Ltd (trading as Grow Inc). The entity develops key
infrastructure for superannuation funds to add a secure, digitally
signed layer to their existing member sub-register via the
implementation of a distributed ledger technology (DLT) application
platform. This investment supports the Group’s strategy to drive
efficiency in financial services using DLT.

No dividends were received during the current or prior year. Refer
to note C3(d)(iii) for details of the movement in the fair value in the
current and prior year.

D2 Equity accounted investments
The Group has interests in the following associate and joint venture,
which are individually immaterial to the Group.

Ownership interest

Carrying amount

Nature of
relationship

2021
%

2020
%

2021
$

2020
$

Name of entity
Yieldbroker
Pty Limited
(Yieldbroker)

Associate

Sympli Australia
Pty Ltd (Sympli)

Joint
venture

31.4

31.0

14.4

9.5

45.8

40.5

The country of incorporation and principal place of business for both
entities is Australia. Both Yieldbroker and Sympli are private entities
and therefore quoted market prices are not available.

Yieldbroker operates licensed electronic markets for trading Australian
and New Zealand debt securities and interest rate derivatives.

Sympli intends to offer electronic conveyancing solutions for
property settlements, known as an Electronic Lodgment Network
Operator (ELNO).

Impairment
Yieldbroker has been tested for impairment at the reporting date
based on value-in-use calculations using projected future cash
flows. The pre-tax discount rate used for testing Yieldbroker was
13.9% (12.0% post-tax discount rate) and the growth rate used to
extrapolate cash flow projections beyond five years was 3.5%.

No impairment was recognised in the current year for Yieldbroker.

In the prior year the carrying amount of Yieldbroker was reduced
by $15.2 million to recognise the decline in current market value
based on value-in-use using projected cash flows. This impairment
was a result of under performance by the company and slower
than expected revenue growth. The pre-tax discount rate used was
13.9% (12.0% post-tax discount rate) and the growth rate applied
to extrapolate cash flow projections beyond five years was 3.5%.

Sympli has been assessed for impairment at the reporting date. No
impairment was recognised for Sympli in the current or prior year.
The following table shows ASX's aggregated interests in equity
accounted investments.

The following table shows ASX's aggregated interests in equity
accounted investments.

For the year ended 30 June
(Loss) from continuing operations

Impairment loss

Total comprehensive income

2021
$m
(5.9)

(5.9)

2020
$m
(5.0)

(15.2)

(20.2)

Associates are entities over which the Group has significant influence
but not control.

Joint ventures are arrangements in which the Group and another party
have joint control and have rights to the net assets of the arrangement.

Investments in associates and joint ventures are accounted for using
the equity method. The investments are initially recognised at cost and
the carrying value is subsequently adjusted to recognise the Group’s
share of the investee’s post-acquisition profit or loss and movement
in other comprehensive income. This is recognised in the Group’s
profit and loss and comprehensive income respectively. Dividends
received or receivable from associates are recognised as a reduction
in the carrying amount of the investment.

The carrying amount of each equity accounted investment is tested for
impairment at each reporting date and whenever events or changes
in circumstances indicate that the carrying amount may not be
recoverable. Indicators of impairment include a significant or prolonged
decline in the fair value of the investment below its cost. Where the
recoverable amount is less than the carrying amount, an impairment
loss is recognised as an expense in the statement of comprehensive
income. The recoverable amount is the higher of the asset's fair value
less costs of disposal and value-in-use, and is assessed at the end of
each reporting period.

Key judgments
The Group has applied judgment in determining if it has significant
influence, control or joint control of the investees. Through its
appointment of two directors to the Board of Yieldbroker, ASX
participates in the financial and operating policy decisions of the
investee. It also holds more than 20% of the voting rights so it is
presumed that ASX has significant influence over the investee. The
Group however does not have the power to unilaterally direct these
decisions to affect the returns of the investee, so does not have control
of the investee. The investment in Yieldbroker has therefore been
classified as an interest in an associate.

The arrangement in relation to Sympli requires unanimous consent
from both parties about relevant activities. As ASX has joint control
over Sympli and has rights to the net assets of the arrangement, the
investment has been classified as a joint venture.

ASX Annual Report 2021 / Notes to the consolidated financial statements continued

Notes to the consolidated financial statements continued

Other balance sheet assets and liabilities

E1 Trade and other receivables

As at 30 June

Current
Trade receivables

Margins receivable

Accrued revenue

Interest receivable

Other debtors

Less: loss allowance

Total trade and other receivables

2021
$m

99.0

253.1

5.7

0.2

5.1

(0.5)

362.6

2020
$m

107.5

643.0

3.6

4.6

3.6

(0.7)

761.6

Refer to note C3(b)(i) for further details of the loss allowance.

Trade receivables, which generally have terms of 30 days, are initially recognised at their transaction price and subsequently measured at amortised
cost using the effective interest method, less any loss allowance.

Margins receivable represents collateral receivable from clearing participants on cash markets and derivative positions held at the end of the day,
and are received on the next business day. The amounts include the movement in the fair value of derivative positions and are recognised on trade
date. A corresponding margins payable is recognised and disclosed within trade and other payables.

E2 Intangible assets
The movements in the intangible asset balances are as follows:

For the year ended 30 June

Opening balance

Cost

Accumulated amortisation
and impairment

Net book value at 1 July

Movement
Additions¹

Amortisation expense

Net book value at 30 June²

Closing balance
Cost

Accumulated amortisation
and impairment

2021

Trade-
marks
$m

Customer
lists
$m

Software
$m

Goodwill
$m

Total
$m

Software
$m

2020

Trade-
marks
$m

Customer
lists
$m

Goodwill
$m

Total
$m

442.8

(271.9)

170.9

96.9

(26.9)

240.9

539.7

(298.8)

7.9

1.2

2,317.6

2,769.5

377.1

(0.8)

(272.7)

(244.9)

0.4

2,317.6

2,496.8

132.2

(0.3)

0.1

96.9

(27.2)

2,317.6

2,566.5

65.7

(27.0)

170.9

1.2

2,317.6

2,866.4

442.8

(1.1)

(299.9)

(271.9)

7.9

1.2

2,317.6

2,703.8

(0.6)

(245.5)

0.6

2,317.6

2,458.3

(0.2)

0.4

65.7

(27.2)

2,317.6

2,496.8

1.2

2,317.6

2,769.5

(0.8)

(272.7)

0.4

2,317.6

2,496.8

Net book value at 30 June²
1 Primarily relates to internal development costs.
² The carrying value of intangible assets under development is $179.3 million (2020: $127.9 million).

2,566.5

2,317.6

240.9

0.1

7.9

170.9

90 ASX Annual Report 2021 / Notes to the consolidated financial statements continued

Notes to the consolidated financial statements continued

Other balance sheet assets and liabilities

(a) Software

There was no impairment expense recognised during the year for software (2020: nil).

Costs incurred in developing products or systems, and acquiring software and licences that will contribute to future benefits, are capitalised at cost
and amortised on a straight-line basis over their expected useful lives, from the time the assets are in use. Certain staff costs are capitalised when
they can be specifically attributed to software development projects. Software purchased from external vendors is classified as externally acquired
and may include capitalised staff costs that have been incurred in the implementation of the software.

Costs incurred in configuring or customising software in a cloud computing arrangement can only be recognised as intangible assets if the activities
create an intangible asset that the entity controls and the intangible asset meets the recognition criteria. Those costs that do not result in intangible
assets are expensed as incurred, unless they are paid to the supplier of the cloud-based software to significantly customise the cloud-based software
for the Group. If this is the case, the costs are recorded as a prepayment for services and amortised over the expected renewable term of the cloud
computing arrangement.

Software is subject to amortisation and is reviewed for indicators of impairment at the end of each reporting period or when events or changes
in circumstances have arisen that indicate the carrying value may be impaired. Where the recoverable amount is less than the carrying amount,
an impairment loss is recognised as an expense in the statement of comprehensive income. The recoverable amount is the higher of an asset’s
fair value less costs of disposal and value-in-use. Determining whether the intangibles are impaired requires an estimation of their useful lives,
residual values and amortisation method. The effect of any changes will be recognised on a prospective basis.

Intangible assets not yet available for use are tested for impairment at least annually, or more frequently if events or changes in circumstances
indicate that they might be impaired. For the purpose of assessing impairment, assets are grouped at the lowest levels for which they are separate
cash generating units (CGUs). Intangible assets not yet available for use are allocated to the Group's CGUs that include the asset. Refer to E2(c)
(ii) for the details of the impairment assessment performed over the Group's CGUs.

The estimated useful lives of significant computer software systems is as follows:

Trading platforms

Clearing platforms

Depository/registry platforms

5 years

10 years

(b) Trademarks and customer lists
There was no impairment expense recognised during the year for
trademarks or customer lists (2020: nil).

Trademarks and customer lists have been externally acquired and
are measured at cost. Customer lists are amortised on a straight-line
basis over their estimated useful life of five years, while the registered
trademark has an indefinite useful life and is not amortised. The
trademark is assessed for impairment at each reporting date or when
there are indicators of impairment.

The pre-tax discount rate used is 11.1% (2020: 11.8%) (8.1% post-tax
discount rate (2020: 9.3%)) for all CGUs. The terminal growth rate
used to extrapolate cash flow projections beyond five years is 2.0%
(2020: 3.2%) per annum for the exchange-traded CGU and 2.0%
(2020: 3.2%) per annum for the non exchange-traded CGU. These
calculations support the carrying value of goodwill and intangible
assets not yet available for use. There is no reasonably possible
change in any key assumptions that management has based its
determination of the CGU's recoverable amount on that would
result in an impairment charge being recognised.

(i) Impairment test for goodwill
The Group consists of two CGUs, namely exchange-traded and non
exchange-traded. The goodwill attributable to each CGU at the time
of acquisition is as follows:

• Exchange-traded: $2,242.2 million

• Non exchange-traded: $75.4 million.

No impairment charge arose in the current or prior financial year.

(ii) Key estimates and assumptions used for value-in-use
calculations
Management has determined the budgeted operating results based
on past performance and expectations for the future. The growth
rates used for revenue and expense projections are consistent with,
or lower than, historical trends for the CGUs.

Goodwill on acquisition is initially measured at cost, being the excess
of the consideration paid over the acquirer's interest in the net fair
value of the identifiable assets, liabilities and contingent liabilities of
the acquiree. Following initial recognition, goodwill is measured at
cost less any accumulated impairment losses.

Goodwill has an indefinite useful life and as such is not subject to
amortisation and is tested semi-annually for impairment, or more
frequently if events or changes in circumstances indicate that they
might be impaired. For the purpose of assessing impairment, assets are
grouped at the lowest levels for which they are separately identifiable
CGUs. A CGU includes in its carrying amount an intangible asset that
is not yet available for use and that asset is tested for impairment
only as part of the CGU. Goodwill is allocated to each of the Group's
CGUs that are expected to benefit from the business combination in
which the goodwill arose.

Goodwill is tested on an annual basis or semi-annual. Where the
recoverable amount is less than the carrying amount, an impairment
loss is recognised as an expense in the statement of comprehensive
income. The recoverable amount of each CGU is determined based on
value-in-use calculations. These calculations use cash flow projections
based on financial estimates reviewed by management covering
a five-year period. Cash flows beyond this five-year period are
extrapolated using estimated growth rates that do not exceed the
long-term average growth rate for the business in which the CGU
operates and are consistent with external sources of information.

ASX Annual Report 2021 / Notes to the consolidated financial statements continued

Notes to the consolidated financial statements continued

Other balance sheet assets and liabilities

E3 Property, plant and equipment
The movements in the property, plant and equipment asset balances are as follows:

For the year ended 30 June

Opening balance
Cost

Accumulated depreciation

Net book value at 1 July

Movement
Additions

Transfers

Depreciation expense

Net book value at 30 June

Closing balance
Cost

Accumulated depreciation

Net book value at 30 June

2021

2020

Leasehold
improvements
$m

Plant and
equipment
$m

Computer
equipment
$m

Leasehold
improvements
$m

Total
$m

Plant and
equipment
$m

Computer
equipment
$m

32.4

(28.2)

4.2

0.2

(2.3)

2.1

32.6

(30.5)

2.1

31.2

(24.4)

6.8

1.2

(2.9)

5.1

32.4

(27.3)

5.1

108.7

(57.6)

51.1

11.5

(11.6)

51.0

120.2

(69.2)

51.0

172.3

(110.2)

62.1

12.9

(16.8)

58.2

185.2

(127.0)

58.2

32.7

(25.8)

6.9

(0.3)

(2.4)

4.2

32.4

(28.2)

4.2

30.3

(21.5)

8.8

0.9

(2.9)

6.8

31.2

(24.4)

6.8

94.9

(49.1)

45.8

13.8

(8.5)

51.1

108.7

(57.6)

51.1

Total
$m

157.9

(96.4)

61.5

14.7

(0.3)

(13.8)

62.1

172.3

(110.2)

62.1

Property, plant and equipment is measured at cost less accumulated depreciation and any impairment in value. Cost includes expenditure that is
directly attributable to the acquisition of the assets. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset,
as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can
be measured reliably. Repairs and maintenance are recognised in profit or loss during the financial period in which they are incurred.

The cost of improvements to leasehold property is capitalised and amortised over the unexpired period of the lease or the estimated useful lives of
the improvements, whichever is the shorter.

Assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting date. An asset’s carrying amount is written down
immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount.

Gains and losses on disposal are determined by comparing the proceeds on disposal with the carrying amount and are included in profit or loss.

Depreciation of assets begins from the time an asset is implemented and available for use. Depreciation is provided on a straight-line basis on all
plant and equipment, over their estimated useful lives.

The depreciation periods for each class of asset, for the current and previous years, are as follows:

Leasehold improvements

Plant and equipment

Computer equipment

The shorter of minimum lease term and useful life

3 – 10 years

3 – 5 years

92 ASX Annual Report 2021 / Notes to the consolidated financial statements continued

Notes to the consolidated financial statements continued

Other balance sheet assets and liabilities

E4 Trade and other payables

As at 30 June
Trade payables

Margins payable

Interest payable

Rebates payable

Transaction taxes payable

Employee-related payables

Accrued expenses

Other payables

Total

2021
$m
6.5

253.1

0.1

13.9

7.0

17.7

32.8

0.9

332.0

2020
$m
5.6

643.0

1.4

25.9

7.6

21.1

21.3

0.9

726.8

Trade and other payables are initially recognised at fair value and are
subsequently measured at amortised cost using the effective interest
method. They represent liabilities for goods and services provided to
the Group prior to the end of the reporting period that are unpaid.

All trade and other payables are unsecured and usually paid within 30
days of recognition, other than certain rebates and accrued expenses
which are typically paid within three months of recognition.

Trade and other payables are presented as current liabilities unless
payment is not due within 12 months of the reporting date.

Refer to the accounting policy in note E1 for details of the margins
payable.

Interest payable includes interest owed to participants on cash collateral
and commitments lodged. Interest is recognised as a finance cost in
the statement of comprehensive income using the effective interest
rate method.

Rebates payable represent refund liabilities. Refer to the accounting
policies in note B2 for further details of the rebates.

E5 Provisions

As at 30 June

Current
Employee provisions

Premises provisions

Total

Non-current
Employee provisions

Premises provisions

Total

19.2

0.8

20.0

5.4

0.6

6.0

The movements in the premises provision are as follows:

For the year ended 30 June

Opening balance at 1 July
Provisions used during the period

Unwinding of discount

Provisions reversed on adoption
of AASB 16

Closing balance at 30 June

1.9
(0.6)

0.1

1.4

17.9

3.6

1.9

5.5

6.5
-

0.1

(4.7)

1.9

The provisions for employee benefits predominantly relate to annual
and long service leave obligations. Premises provisions comprises
of make-good provisions.

Provisions are recognised when the Group has a present legal or
constructive obligation as a result of a past event, that it is probable
the obligation will be settled and the amount can be reliably estimated.
If the effect is material, provisions are determined by discounting
the expected future cash flows at a pre-tax rate that reflects current
market assessments of the time value of money, and when appropriate,
the risks specific to the liability. The increase in the provision due to
the passage of time is recognised as a finance cost in profit or loss.

Contingent liabilities are possible obligations whose existence will be
confirmed only by uncertain future events, and present obligations
where the transfer of economic resources is not probable or cannot
be reliably measured. There are ongoing legal claims and possible
claims against the Group and its subsidiaries. Contingent liabilities
exist in respect of actual and potential claims. An assessment of any
likely loss has been made on a case-by-case basis and a provision is
raised where appropriate.

Current employee provisions include liabilities for annual leave and
wages and salaries, including non-monetary benefits that are expected
to be settled wholly within 12 months after the end of the period in
which the employees render the related service. These are recognised
in respect of employees’ services up to the end of the reporting period.
Long service leave provisions that the Company does not have an
unconditional right to defer for 12 months after the reporting date are
recognised as a current provision, regardless of when the actual settle-
ment is expected to occur. Current employee provisions are measured
at the amounts expected to be paid when the liabilities are settled.

Non-current employee provisions include long service leave provisions
where the Company has an unconditional right to defer settlement for
at least 12 months after the reporting period. Non-current employee
provisions are not expected to be wholly settled within 12 months
after the end of the reporting date, and are therefore measured as
the present value of expected future payments.

When determining whether employees qualify or are expected to
qualify for the Group’s long service leave arrangements, consideration
is given to history of employee departures and periods of service.
Expected future wage and salary levels are discounted using the
rates attached to a basket of comparable liquid corporate bonds at
the end of each reporting period, which most closely match the terms
to maturity of the related liabilities.

For short-term cash incentives offered to staff, the Group recognises
a liability and an expense. A provision is recognised where there is a
contractual obligation or where there is past practice that gives clear
evidence of the amount of the obligation.

Where short-term incentives are deferred to a future period, the
value of the incentives is expensed over the term of the deferral
and recognised as a liability. Amounts expected to be wholly settled
within 12 months after the end of the reporting date are recognised
as current, all others are recognised as non-current.

Make-good obligations are provided for office space under operating
leases that require the premises to be returned to the lessor in their
original condition. The operating lease payments do not include the
make-good payment at the end of the lease term. Provisions for make-
good obligations are recognised when the Group becomes party to
lease contracts that include make-good clauses.

ASX Annual Report 2021 / Notes to the consolidated financial statements continued

Notes to the consolidated financial statements continued

Other balance sheet assets and liabilities

E6 Right-of-use assets (leases)
The movements in the right-of-use asset balances are as follows:

For the year ended 30 June

Opening balance

Cost

Accumulated depreciation

Net book value at 1 July¹

Movement
Additions

Disposals – cost

Disposals – accumulated
depreciation

Depreciation expense

Net book value at 30 June

Closing balance

Cost

Accumulated depreciation

Property leases
$m

2021

Other
$m

Total
$m

Property leases
$m

2020

Other
$m

77.6

(9.1)

68.5

(9.0)

59.5

77.6

(18.1)

7.9

(1.5)

6.4

1.4

(0.8)

0.3

(2.5)

4.8

8.5

(3.7)

85.5

(10.6)

74.9

1.4

(0.8)

0.3

(11.5)

64.3

86.1

(21.8)

64.3

77.6

(9.1)

68.5

77.6

(9.1)

68.5

5.7

3.4

(1.2)

0.4

(1.9)

6.4

7.9

(1.5)

6.4

Net book value at 30 June
¹ Net book value at 1 July 2019 includes assets recognised on adoption of AASB 16.

59.5

4.8

Total
$m

83.3

3.4

(1.2)

0.4

(11.0)

74.9

85.5

(10.6)

74.9

The consolidated statement of cash flows shows the following
amounts relating to leases:

For the year ended 30 June
Principal payments for leased assets

Payment of interest expense

Total cash outflow for leases

2021
$m
9.6

3.1

12.7

2020
$m
6.1

3.4

9.5

The movements in the lease liabilities balance are as follows:

For the year ended 30 June

Opening balance at 1 July
Additions

Disposals

Interest incurred

Payment of interest expense

Payments of lease liabilities

Total lease liabilities

2021
$m

81.1
1.4

(0.5)

3.1

(3.1)

(9.6)

72.4

2020
$m

87.2
-

3.4

(3.4)

(6.1)

81.1

The consolidated statement of other comprehensive income shows
the following amounts relating to leases:

For the year ended 30 June

Interest on lease liabilities

Expense relating to short-term and low
value leases

Depreciation expense

Total

2021
$m

3.1

0.6

11.5

15.2

2020
$m

3.4

0.6

11.0

15.0

94 ASX Annual Report 2021 / Notes to the consolidated financial statements continued

Notes to the consolidated financial statements continued

Other balance sheet assets and liabilities

Group disclosures

The right-of-use asset is initially measured at cost which comprises of
the amount of the initial measurement of the lease liability, adjusted
for any lease payments made at or before commencement date, plus
any initial direct costs incurred, and an estimate of costs to restore
the underlying asset, less any lease incentives received.

Depreciation is charged on a straight-line basis on all right-of-use
assets over the term of the lease. The right-of-use asset is periodically
assessed for impairment and is adjusted for certain re-measurements
of the lease liability.

Lease liabilities are initially measured on a present value basis of the
following lease payments:

• Fixed payments (including in-substance fixed payments), less

any lease incentives receivable

• Variable lease payments that are based on an index or a rate
• Payments of penalties for terminating the lease, if the lease

term reflects the Group exercising that option.

Lease payments to be made under reasonably certain extension
options are also included in the measurement of the liability. The lease
payments are discounted using the interest rate implicit in the lease.

Application of the incremental borrowing rate is adopted where
the interest rate implicit in the lease cannot be readily determined,
which is generally the case for leases in the Group. The incremental
borrowing rate is the rate that the Group would have to pay to borrow
funds necessary to obtain an asset of similar value to the right-of-use
asset in a similar economic environment, with similar terms, security
and conditions.

The lease liability is measured at amortised cost using the effective
interest method. It is re-measured when there is a change in future
lease payments arising from a change in an index or rate, or if the
Group changes its assessment of whether it will exercise a purchase,
extension or termination option with a corresponding adjustment to
the right-of-use asset.

Lease payments due within the next 12 months are recognised within
current lease liabilities. Payments due after 12 months are recognised
within non-current lease liabilities.

Interest expense on the lease liability is a component of finance cost
and is presented in the consolidated statement of comprehensive
income.

For short-term leases of 12 months or less, and leases of low-value
assets, the Group has elected not to recognise right-of-use assets
and lease liabilities for these leases. The Group recognises the lease
payments associated with these leases as an expense on a straight-line
basis over the lease term.

Critical judgments in determining lease term
In determining the lease term, the Group considers all facts and
circumstances that create an economic incentive to exercise an
extension option, or not exercise a termination option. Extension
options (or periods after termination options) are only included in
the lease term if the lease is reasonably certain to be extended (or
not terminated). The lease term is reassessed if an option is actually
exercised (or not exercised) or the Group becomes obliged to exercise
(or not exercise) it.

F1 Subsidiaries
Parent entity¹: ASX Limited

Subsidiaries of ASX Limited:
ACN 611 659 664 Limited2
ASX Acceler8 Pty Limited
ASX Benchmarks Pty Limited
ASX Clearing Corporation Limited
ASX Compliance Pty Limited
ASX Data Analytics Pty Limited
ASX Energy Limited
ASX Financial Settlements Pty Limited
ASX Futures Exchange Pty Limited
ASX Long-Term Incentive Plan Trust
ASX Operations Pty Limited2
ASX Settlement Corporation Limited2
Australian Securities Exchange Limited2
Australian Stock Exchange Pty Limited
SFE Corporation Limited2

Subsidiaries of ASX Operations Pty Limited:
ASX Collateral Management Services Pty Limited
Australian Clearing Corporation Limited2
Australian Clearing House Pty Limited
Equityclear Pty Limited
New Zealand Futures and Options Exchange Limited
Options Clearing House Pty Limited
Sydney Futures Exchange Pty Limited

Subsidiaries of ASX Clearing Corporation Limited:
ASX Clear (Futures) Pty Limited
ASX Clear Pty Limited
ASX Clearing Corporation Trust

Subsidiaries of ASX Settlement Corporation Limited:
ASX Settlement Pty Limited
Austraclear Limited

Subsidiaries of ASX Settlement Pty Limited:
CHESS Depositary Nominees Pty Limited

Subsidiaries of Austraclear Limited:
Austraclear Services Limited

Subsidiaries of Australian Securities Exchange Limited:
Australian Securities Exchange (US) Inc

1 Parent entity refers to the immediate controlling entity of the entity in which

the investment is shown. The parent entity’s investment in relation to all
subsidiaries during the financial year was 100% (2020: 100%).

2 These subsidiaries are parties to the Deed of Cross Guarantee (the Deed) and
have been granted relief from preparing financial statements in accordance
with ASIC Legislative Instrument 2016/785. Refer to note F2 for details of
the Deed.

ASX Annual Report 2021 / Notes to the consolidated financial statements continued

Notes to the consolidated financial statements continued

Group disclosures

ASX Limited and Australian Securities Exchange Limited are licensed
to operate financial markets while ASX Clear, ASX Clear (Futures),
Austraclear Limited and ASX Settlement Pty Limited are licensed
to operate clearing and settlement facilities.

F2 Deed of Cross Guarantee
ASX Limited and the wholly owned subsidiaries listed below are
parties to a Deed of Cross Guarantee. In accordance with the Deed,
each party guarantees the debts of the others.

In accordance with the Corporations Act 2001, the Group maintains
two fidelity funds for claims about the defalcation of monies in
relation to cash market and derivative trading. ASX Limited acts as
manager for the ASX Division 3 Compensation Fund and Australian
Securities Exchange Limited acts as trustee for the Sydney Futures
Exchange Limited Fidelity Fund. ASX is also the sole member of
the Securities Exchanges Guarantee Corporation (SEGC), which
is responsible for administering the NGF, a compensation fund
available to meet certain types of claims arising from dealings with
participants of ASX and, in limited circumstances, participants of
ASX Clear, in accordance with the Corporations Act 2001.

ASX Division 3 Compensation Fund, Sydney Futures Exchange
Limited Fidelity Fund and SEGC are not consolidated into the Group.

All subsidiaries are incorporated in Australia except for Australian
Securities Exchange (US) Inc (incorporated in the US), New Zealand
Futures and Options Exchange Limited and ASX Energy Limited
(both incorporated in New Zealand). All subsidiaries have the same
reporting date.

Subsidiaries are consolidated from the date on which control is
transferred to the Group and are de-consolidated from the date
that control ceases. Control exists when the Company is exposed
to, or has rights to, variable returns from its involvement with that
entity and has the ability to affect those returns through its power
to direct the activities of the entity. In addition to considering the
existence of potential voting rights that are presently exercisable
or convertible, the Company also considers relationships with other
parties that may result in the Company controlling an entity on the
basis of de facto circumstances.

The Group has two established trusts. LTIPT administers the Group’s
employee share scheme while ASX Clearing Corporation Trust
manages the cash and financial assets at amortised cost of the two
CCP subsidiaries. Both trusts are consolidated as the substance of
the relationship is that they are controlled by the Group.

Subsidiary name
ACN 611 659 664 Limited

ASX Operations Pty Limited

Australian Clearing Corporation Limited

Australian Securities Exchange Limited

ASX Settlement Corporation Limited

SFE Corporation Limited

ABN/ACN
611 659 664

42 004 523 782

068 624 813

83 000 943 377

48 008 617 187

74 000 299 392

Pursuant to ASIC Legislative Instrument 2016/785, the wholly owned
subsidiaries are relieved from the requirement to prepare financial
reports and directors’ reports.

The entities represent a ‘closed group’ for the purposes of the
instrument, and as there are no other parties to the Deed that
are controlled by the Company, they also represent the ‘extended
closed group’.

No entities were added or removed from the Deed during the year.

(a) Consolidated statement of comprehensive income
and summary of movements in retained earnings
The consolidated statement of comprehensive income and summary
of movements in consolidated retained earnings for the closed
group is set out below.

Statement of comprehensive income

For the year ended 30 June
Total revenue

Total expenses

Profit before income tax expense
Income tax expense

Net profit for the period

Items that may be reclassified to
profit or loss:

Change in the fair value of
investments in equity instruments

Change in the fair value of cash flow hedges

Other comprehensive income for the
period, net of tax

2021
$m
999.1

(320.3)

678.8
(191.6)

487.2

(11.3)

(0.1)

(11.4)

2020
$m
1,014.0

(312.0)

702.0
(197.0)

505.0

0.2

(0.5)

(0.3)

Total comprehensive income for the period

475.8

504.7

Summary of movements in consolidated retained earnings

Opening retained earnings at 1 July
Transfers from related entities

Dividends paid

Profit for the period

Closing retained earnings at 30 June

601.2
1.0

(454.8)

487.2

634.6

792.7
-

(696.5)

505.0

601.2

96 ASX Annual Report 2021 / Notes to the consolidated financial statements continued

Notes to the consolidated financial statements continued

Group disclosures

(b) Consolidated balance sheet
The consolidated balance sheet for the closed group is set out below.

As at 30 June

Current assets
Cash

Other financial assets at amortised cost

Trade and other receivables

Prepayments

Total current assets

Non-current assets
Investments in subsidiaries

Investments in equity instruments

Equity accounted investments

Intangible assets

Property, plant and equipment

Leased assets

Net deferred tax asset

Prepayments

Total non-current assets

Total assets

Current liabilities
Trade and other payables

Current tax liabilities

Provisions

Lease liabilities

Revenue received in advance

Total current liabilities

Non-current liabilities
Provisions

Lease liabilities

Revenue received in advance

Total non-current liabilities

Total liabilities

Net assets

Equity
Issued capital

Retained earnings

Reserves

Total equity

F3 Related party transactions
(a) Transactions between subsidiaries
ASX Operations Pty Limited provides operational support for the
majority of the Group’s activities. Expenses paid, revenues collected
and purchase of capital items on behalf of other entities within the
Group are booked into inter-entity accounts. Interest is not charged
on any inter-entity account, other than trust balances.

Transactions between the Company and subsidiaries are eliminated
on consolidation.

Balances receivable by the Company from wholly owned subsidiaries
within the Group are as follows:

As at 30 June

Current
Amounts due from subsidiaries

2021
$000

2020
$000

140,488

146,667

The following transactions occurred between subsidiaries and the
Company during the year:

2021
$m

125.3

124.9

78.1

21.0

349.3

941.1

41.8

45.8

2020
$m

64.7

184.7

111.5

23.3

384.2

922.1

45.1

40.5

2,503.6

2,433.7

58.2

64.3

48.0

6.8

62.1

74.9

44.8

8.7

3,709.6

3,631.9

4,058.9

4,016.1

For the year ended 30 June
Dividends paid to the parent entity

496,000

521,000

75.6

21.8

20.0

9.8

108.7

235.9

6.0

62.6

84.9

153.5

389.4

79.4

25.8

17.9

9.5

89.1

221.7

5.5

71.6

71.0

148.1

369.8

3,669.5

3,646.3

3,027.2

634.6

7.7

3,027.2

601.2

17.9

3,669.5

3,646.3

(b) Transactions with other related entities
The following transactions occurred with other related entities
during the year:

Purchase of services from associates

429

339

These transactions are on an arm's length basis and under normal
commercial terms and conditions.

(c) Key Management Personnel (KMP) remuneration
KMP compensation (including non-executive directors) provided
during the financial year is set out in the following table. Further
details are disclosed in the Remuneration Report on pages 43 to 60.

Short-term employee benefits¹

Post-employment benefits

Long-term benefits

Share-based payments

9,335

295

4,279

9,982

305

2,752

Total
1Short-term employment benefit includes $385,410 termination benefit.

13,993

13,101

The share-based payments reflects the expense for performance
rights issued under the ASX LTVR Plan, shares issued under
equity plans and shares purchased under the employee share
scheme. The expense is calculated using the fair value of
performance rights or shares at grant date, less any write-back
for performance rights lapsed as a result of non-market hurdles
not attained.

ASX Annual Report 2021 / Notes to the consolidated financial statements continued

Notes to the consolidated financial statements continued

Group disclosures

F4 Parent entity financial information
(a) Summary financial information
The individual financial statements for the parent entity show the
following aggregate amounts:

Statement of comprehensive income

For the year ended 30 June
Total revenue

Total expenses

Profit before income tax expense
Income tax expense

Net profit for the period

Other comprehensive income for the
period, net of tax

Total comprehensive income/(loss)
for the period

Balance sheet

As at 30 June
Current assets

Non-current assets

Total assets

Current liabilities

Non-current liabilities

Total liabilities

Net assets

Issued capital

Retained earnings

Asset revaluation reserve

Equity compensation reserve

Total equity

2021
$m
490.1

(2.5)

487.6
0.7

488.3

(11.3)

477.0

142.0

3,485.5

3,627.5

21.9

3,605.6

3,027.2

572.8

(11.2)

16.8

2020
$m
516.0

(16.4)

499.6
0.4

500.0

(0.1)

499.9

147.4

3,459.6

3,607.0

25.8

0.1

25.9

3,581.1

3,027.2

538.2

0.1

15.6

3,605.6

3,581.1

The financial information for the parent entity, ASX, has been prepared
on the same basis as the consolidated financial statements, except
as set out below.

Unlisted shares in subsidiaries are accounted for at cost in the financial
statements of ASX.

ASX elected to form a tax consolidated group (tax group) for income
tax purposes. ASX is the head entity and is therefore liable for the
income tax liabilities of the tax group. The consolidated current
and deferred tax amounts arising from temporary differences
of the members of the tax group are recognised in the separate
financial statements of the members of the tax group using the
‘separate taxpayer within group’ approach. ASX has entered into a
tax funding agreement with members of the Australian tax group.
The agreement has the objective of achieving an appropriate
allocation of the Group’s income tax expense to the main operating
subsidiaries within the Group. The tax funding agreement also has
the objective of allocating deferred tax assets relating to tax losses
only, and current tax liabilities of the main operating subsidiaries
to ASX. The subsidiaries will reimburse ASX for their portion of
the Group’s current tax liability and will recognise this payment as
an inter-entity payable or receivable in their financial statements
for that financial year. ASX will reimburse the subsidiaries for the
deferred tax asset from any unused tax losses or credits by making
a payment equal to the carrying value of the deferred tax asset.

(b) Guarantees entered into by the parent entity
The parent entity, ASX, is party to a Deed of Cross Guarantee
together with the entities defined in note F2. Under the Deed, the
Company guarantees to each creditor payment in full of any debt
in the event of winding up of any of the subsidiaries under certain
provisions of the Corporations Act 2001. No deficiencies of assets
exist in any of these entities.

(c) Contractual commitments and contingencies
ASX has an agreement with ASX Clear for a $230.0 million (2020:
$230.0 million) standby liquidity loan facility that may be used in
limited and specific circumstances following the default of clearing
participants.

ASX has an agreement with CHESS Depositary Nominees Pty Limited
(CDN) which provides $10.0 million (2020: $10.0 million) in funds
to support CDN’s licence obligations if required.

No payments were made under either facility in the current or
prior financial year.

The NGF, which is administered by SEGC, is maintained to provide
compensation for prescribed claims arising from dealings with
market participants as set out in the Corporations Act 2001. If the
net assets of the NGF fall below the minimum amount determined
by the Minister, SEGC may determine that ASX or participants must
pay a levy to SEGC. No levies were called on ASX in the current or
prior financial year.

In accordance with the Financial Stability Standards recovery
rules, the parent entity, ASX, is obligated in certain circumstances
to replenish a shortfall in the financial resources available to
the CCPs up to predetermined levels for any one participant default.
No replenishments were made in the current or prior year. In
accordance with the Australian Financial Services Licence of ASX
Collateral Management Services Pty Limited, ASX Limited has an
obligation to fund any amounts required by the subsidiary.

ASX Limited did not have any other contractual commitments or
contingent liabilities for the years ended 30 June 2021 or 2020.

(d) Borrowings
ASX Limited has an unsecured committed facility that can only be
called upon to provide short-term liquidity to ASX Clear following a
clearing participant default. The facility limit is $180.0 million (2020:
$180.0 million) and remained undrawn at the date of this report.

ASX Limited also has a bilateral corporate debt facility to assist
with short-term working capital requirements. The facility limit is
$300.0 million and there are no outstanding balances owed at the
end of the current reporting period.

The proceeds and repayments of the bilateral corporate debt facility
are summarised below:

For the year ended 30 June

As at 1 July

Cash flows
Proceeds

Repayments

Total

2021
$m
-

200.0

(200.0)

2020
$m
-

100.0

(100.0)

98 ASX Annual Report 2021 / Notes to the consolidated financial statements continued

Notes to the consolidated financial statements continued

(b) Deferred equity plans
The Group operates deferred equity plans for KMPs and other
employees. Under the plan, an employee receives between 40%–50%
of their STVR in cash and the remainder as shares, which are deferred
for two to four years in equity. If the employee ceases employment
during the deferred share period, the shares are forfeited, except
in certain limited circumstances.

Employees have full ownership rights of the shares under the
schemes including voting rights and entitlement to dividends.
Provided the employee remains employed by the ASX Group and
maintains satisfactory individual performance, the shares are subject
to a holding lock until vesting. Post vesting, employees can only
deal with the shares in accordance with ASX's dealing rules. The
shares cannot be transferred to another person or disposed of
during this period.

The number of shares allocated to each eligible employee is the
amount of the STVR award deferred into shares divided by the
volume weighted average price (VWAP) over the five business days
up to and including the offer close date, rounded to the nearest
share.

During the year, there were 98,913 (2020: 103,900) shares allocated.
The shares are recognised at their fair value, being the market price
on purchase date. The weighted average fair value of the shares
issued under the deferred equity plans during the year was $86.79
(2020: $83.79).

Group disclosures

F5 Other disclosures
F5.1 Commitments

(a) Capital commitments
Capital commitments contracted for but not yet incurred as at
balance date are as follows:

As at 30 June
Intangible assets – software

2021
$m
19.4

2020
$m
22.3

F5.2 Share-based payments

(a) LTVR Plan
The Group provides performance rights to ordinary shares of
the Company to employees as part of the LTVR Plan to recognise
performance, skills and behaviours that deliver sustainable
long-term shareholder value. They entitle certain KMP to
performance rights over ASX Limited shares.

Participants are granted performance rights that only vest if certain
performance conditions are met. All performance rights are to be
settled by physical delivery of ordinary shares in ASX Limited subject
to the performance conditions being attained. The number of rights
that vest depends on an EPS hurdle being achieved and ASX’s total
shareholder return (TSR) relative to a comparator group. Under all of
the plans, 50% of the performance rights are dependent on relative
EPS growth and 50% on relative TSR. All plans have a contractual
life of four years and do not carry rights to dividends.

The following table shows the movement in the number of
performance rights during the current and prior year.

For the year ended 30 June

Opening balance at 1 July
Granted during the year

Vested during the year

Lapsed during the year

Closing balance at 30 June

2021
No. of rights

2020
No. of rights

101,983
18,137

(15,666)

(15,668)

88,786

96,602
18,422

(6,520)

(6,521)

101,983

Details of each of the plans and the number of grants outstanding
at the end of the reporting period is shown in the following table.

Grant date/employees entitled
Performance rights granted to
KMP on 2 October 2020

Performance rights granted to
KMP on 24 September 2019

Performance rights granted to
KMP on 4 October 2018

Performance rights granted to
KMP on 26 September 2017

Total

Number of
instruments
granted

Weighted
average fair
value

18,137

18,422

23,764

28,463

88,786

$55.90

$50.82

$38.91

$34.30

ASX Annual Report 2021 / Notes to the consolidated financial statements continued

Notes to the consolidated financial statements continued

F5.3 Auditor’s remuneration
The following fees were paid or payable by the Group for and on
behalf of all Group entities for services provided by the auditor and
its related practices during the financial year:

PricewaterhouseCoopers Australia

Statutory audit services:
Audit and review of the financial
statements and other audit work
under the Corporations Act 2001

Audit of information technology
platforms

Other audit services:
Code of Practice compliance

Non-audit services:
Tax compliance services

Total remuneration for
PricewaterhouseCoopers Australia

2021
$'000

2020
$'000

771

314

173

1,342

687

196

157

1,120

F5.4 Subsequent events
There have been no matters or circumstances that have arisen
which have significantly affected the operations of the Group, the
results of those operations or the state of affairs of the Group from
the end of the period to the date of this report.

Group disclosures

(c) Employee Share Purchase Plan
The ASX Employee Share Purchase Plan offers the opportunity for
employees to purchase fully paid ordinary shares in ASX through
salary sacrifice up to the value of $1,000 at a discount of 10%. All
Australian permanent full-time and part-time employees, and
maximum-term contractors with end dates beyond 30 June are
eligible to participate in the scheme.

Employees have full ownership rights of the shares under the
scheme including voting rights and entitlement to dividends. The
shares are subject to a three-year holding lock and as such cannot
be transferred to another person or disposed of until the earlier
of cessation of employment or three years from grant date, and
subject to compliance with ASX's dealing rules.

The number of shares allocated to each employee is the offer
amount divided by the VWAP over the five business days up to and
including the offer close date, rounded down to the nearest share.

Under the 2021 Plan, 6,566 shares (2020: 5,232) were issued in
total. The shares are recognised at their fair value of $68.72 (2020:
$74.30), being the market price on the purchase date.

(d) Employee expenses
The following table shows the total share-based payments
recognised within staff expenses during the year, and includes the
impact of reversals resulting from non-market based performance
hurdles not being achieved.

LTVR Plan

Deferred equity plans

Employee Share Purchase Plan

Total

2021
$m
1.2

8.2

0.5

9.9

2020
$m
0.2

6.9

0.4

7.5

The fair value of the performance rights for the EPS component is
calculated using the share price at market close on the grant date,
less the present value of the expected dividends over the performance
period. The fair value of performance rights for the TSR component is
calculated by an independent valuer using a Monte-Carlo simulation
model.

Fair values are recognised over the vesting period as an expense with a
corresponding increase in the equity compensation reserve. Fair values
include the impact of any market performance conditions and the
impact of any non-vesting conditions, but excludes the impact of any
service and non-market performance vesting conditions. Non-market
vesting conditions are included in assumptions about the number
of performance rights that are expected to vest. The impact of any
revisions to the original estimates are recognised in profit or loss with
a corresponding adjustment to equity.

100 ASX Annual Report 2021 / Notes to the consolidated financial statements continued

Directors' declaration

In the opinion of the directors of ASX Limited (the Company):

a. the financial statements and notes that are contained in pages 64 to 100 in the Annual Report, are in accordance with the

Corporations Act 2001, including:

i. giving a true and fair view of the consolidated entity’s financial position as at 30 June 2021 and of its performance for the financial

year ended on that date, and

ii. complying with Australian Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting

requirements

b. there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable

c. at the date of this declaration, there are reasonable grounds to believe that the members of the extended closed group identified
in note F2 will be able to meet any liabilities to which they are, or may become, subject by virtue of the Deed of Cross Guarantee
described in note F2, and

d. the financial statements also comply with International Financial Reporting Standards as disclosed in note A1.

The directors have been given the declarations required by section 295A of the Corporations Act 2001 from the Chief Executive Officer
and the Chief Financial Officer for the financial year ended 30 June 2021.

Signed in accordance with a resolution of the directors:

Damian Roche
Chairman

Dominic Stevens
Managing Director and Chief Executive Officer

Sydney, 19 August 2021

ASX Annual Report 2021 / Directors' declaration

101

Independent auditor’s report to the members of ASX Limited

Report on the audit of the financial report

Our opinion
In our opinion:

The accompanying financial report of ASX Limited (the Company)
and its controlled entities (together the Group) is in accordance with
the Corporations Act 2001, including:

a. giving a true and fair view of the Group's financial position as
at 30 June 2021 and of its financial performance for the year
then ended

b. complying with Australian Accounting Standards and the

Corporations Regulations 2001.

What we have audited
The Group financial report comprises:

• the consolidated balance sheet as at 30 June 2021

• the consolidated statement of comprehensive income for the

year then ended

• the consolidated statement of changes in equity for the year

then ended

• the consolidated statement of cash flows for the year then ended

• the notes to the consolidated financial statements, which

include significant accounting policies and other explanatory
information

• the directors’ declaration.

Basis for opinion
We conducted our audit in accordance with Australian Auditing
Standards. Our responsibilities under those standards are further
described in the Auditor’s responsibilities for the audit of the
financial report section of our report.

We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion.

Independence
We are independent of the Group in accordance with the auditor
independence requirements of the Corporations Act 2001 and
the ethical requirements of the Accounting Professional & Ethical
Standards Board’s APES 110 Code of Ethics for Professional
Accountants (including Independence Standards) (the Code) that
are relevant to our audit of the financial report in Australia. We
have also fulfilled our other ethical responsibilities in accordance
with the Code.

Our audit approach
An audit is designed to provide reasonable assurance about
whether the financial report is free from material misstatement.
Misstatements may arise due to fraud or error. They are considered
material if individually or in aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the
basis of the financial report.

We tailored the scope of our audit to ensure that we performed
enough work to be able to give an opinion on the financial report
as a whole, taking into account the geographic and management
structure of the Group, its accounting processes and controls and
the industry in which it operates.

Materiality
• For the purpose of our audit we used overall Group materiality
of $34.4m, which represents approximately 5% of the Group’s
profit before tax.

• We applied this threshold, together with qualitative

considerations, to determine the scope of our audit and the
nature, timing and extent of our audit procedures and to
evaluate the effect of misstatements on the financial report
as a whole.

• We chose Group profit before tax because, in our view, it is the
benchmark against which the performance of the Group is most
commonly measured.

• We utilised a 5% threshold based on our professional
judgement, noting it is within the range of commonly
acceptable thresholds.

Audit scope
• Our audit focused on where the Group made subjective

judgements; for example, significant accounting estimates
involving assumptions and inherently uncertain future events.

PricewaterhouseCoopers, ABN 52 780 433 757

One International Towers Sydney, Watermans Quay, Barangaroo, GPO BOX 2650, SYDNEY NSW 2001
T: +61 2 8266 0000, F: +61 2 8266 9999, www.pwc.com.au

Level 11, 1PSQ, 169 Macquarie Street, Parramatta NSW 2150, PO Box 1155 Parramatta NSW 2124
T: +61 2 9659 2476, F: +61 2 8266 9999, www.pwc.com.au

Liability limited by a scheme approved under Professional Standards Legislation.

102 ASX Annual Report 2021 / Independent auditor’s report to the members of ASX Limited

Independent auditor’s report to the members of ASX Limited continued

Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report for
the current period. The key audit matters were addressed in the context of our audit of the financial report as a whole, and in forming our
opinion thereon, and we do not provide a separate opinion on these matters. Further, any commentary on the outcomes of a particular
audit procedure is made in that context. We communicated the key audit matters to the Audit and Risk Committee.

Key audit matter

How our audit addressed the key audit matter

Impairment of assets

Goodwill impairment assessment
(Refer to note E2)

The Group’s goodwill is allocated to two Cash Generating Units (CGUs):
‘exchange-traded’ ($2,242.2m) and ‘non-exchange traded’ ($75.4m).

We considered this a key audit matter due to the financial significance
of the goodwill balance ($2.3bn as at 30 June 2021) and the inherent
judgement and estimation uncertainty in the Group’s assessment
of the value in use of each CGU. This includes the continued impact
and uncertainty surrounding the COVID-19 pandemic on the Group’s
judgements over future cash flows, and the terminal growth and
discount rates applied to cash flow forecasts.

The Group performed an annual impairment assessment over the
goodwill balance, as required by Australian Accounting Standards, by:

1. Calculating the value in use for each CGU using a discounted
cash flow model. The key assumptions in this model include
cash flows (revenues, expenses and capital expenditure) for
each CGU for five years and a growth rate to extrapolate
cash flow projections beyond 5 years (terminal growth rate).
The cash flows were discounted to net present value using a
discount rate determined to be appropriate by the Group

2. Comparing the value in use of each CGU to their respective

carrying values.

The Group also performed a sensitivity analysis over the value in
use calculations, by varying the assumptions used (terminal growth
rate and discount rate) to assess the impact on the impairment
assessment.

Our procedures included:

• Evaluating the design of the Group’s relevant controls over the

impairment assessment of goodwill

• Evaluating the determination and composition of the CGUs to

which goodwill is allocated

• Evaluating the Group’s cash flow forecasts and the process
by which they were developed, including considering the
mathematical accuracy of the underlying calculations in the
discounted cash flow model (the model) and assessing whether
the value in use cash flow forecasts were consistent with
previous performance, the Board-approved budgets and that
significant assumptions in the budgets were subject to oversight
by the directors

• Assessing the reasonableness of the Group’s disclosures in
the financial report against the requirements of Australian
Accounting Standards.

Together with PwC valuation experts, we also:

• Evaluated the appropriateness of the value in use methodology
based on the requirements of Australian Accounting Standards

• Compared the forecast cash flows and growth rates used in the

Group’s cash flow forecasts to historical results and economic and
industry forecasts

• Assessed the appropriateness of the discount rate used in the
model by comparing the cost of capital for the Group to market
data and industry research.

Key audit matter

How our audit addressed the key audit matter

Valuation and existence of financial instruments

Our procedures included:

A) Valuation and existence of other financial assets at
amortised cost
(Refer to note C3)

At 30 June 2021, other financial assets at amortised cost were $7.6bn
and comprised of reverse repurchase agreements, negotiable certificates
of deposit, promissory notes and treasury notes.

We considered this a key audit matter due to the financial
significance of the balance.

• Evaluating the appropriateness and reliability of data used in the
Group’s calculations by agreeing a sample of key inputs to source
documentation

• Assessing the mathematical accuracy of the Group’s valuation

calculations through reperformance

• Confirming the existence of other financial assets at amortised

cost with counterparties as at 30 June 2021

• Assessing the reasonableness of the Group’s disclosures in
the financial report against the requirements of Australian
Accounting Standards.

ASX Annual Report 2021 / Independent auditor’s report to the members of ASX Limited continued

103

Independent auditor’s report to the members of ASX Limited continued

Key audit matter

How our audit addressed the key audit matter

B) Valuation and existence of financial assets at fair value
(Refer to note C3)

At 30 June 2021, financial assets at fair value through profit and
loss (FVTPL) were $458.7m and comprised non-cash collateral.

$399.7m of the financial assets are classified as ‘level 1’ in
accordance with the categorisation criteria under Australian
Accounting Standards, where quoted prices in active markets
are available for identical assets.

Together with PwC valuation experts, our procedures included:

• Evaluating the design of the Group’s relevant controls over the

valuation of financial assets at FVTPL

• Testing the valuation of financial assets at FVTPL held by the

Group as at 30 June 2021, by reference to quoted prices in active
markets

• Confirming the existence of financial assets at fair value with

counterparties as at 30 June 2021

The remaining $59m is classified as ‘level 2’, where values are derived
from observable prices (or inputs to valuation models) other than
quoted prices included within ‘level 1’. The valuation of ‘level 2’ securities
therefore requires a higher degree of judgement by the Group.

• Assessing the reasonableness of the Group’s fair value

disclosures in the financial report, including the classification
of the financial assets at FVTPL as ‘level 1’ and as ‘level 2’
against the requirements of Australian Accounting Standards.

We considered this a key audit matter due to the financial
significance of the balance, as well as the inherent judgement
involved in valuing level 2 financial instruments at fair value.

Key audit matter

How our audit addressed the key audit matter

Accuracy of revenue recognition

Our procedures included:

(Refer to note B2)

At 30 June 2021, revenue from contracts from customers in the
consolidated statement of comprehensive income totalled $962.3m.

Listings and Issuer Services ($260.8m) comprises: initial and
subsequent listing fees, which are deferred and recognised evenly
over the period the listing services is expected to be provided,
which is five years for initial listings and three years for subsequent
listings; and annual listing fees, which are recognised evenly over
the financial year the service is provided.

All other revenue streams ($701.5m) (Derivatives and OTC Markets;
Trading Services; and Equity Post-Trade Services) are recognised
at the point in time the service is provided.

We considered this a key audit matter due to the financial
significance of total revenue and the inherent judgement required
by the Group in determining the period that it expects to satisfy
its performance obligations in relation to listing services, within
the listings and issuer services revenue stream.

• Evaluating the design of the Group’s relevant controls over

revenue recognition and assessing whether a sample of these
controls operated effectively throughout the year

• Evaluating the appropriateness and reliability of data used in the
Group’s revenue calculations by agreeing a sample of inputs to
source documentation

• Assessing the mathematical accuracy of a sample of the Group’s

revenue calculations through reperformance

• Considering whether revenue recognised during the current year
was recognised in the appropriate accounting period and did not
relate to an earlier or later period

• Evaluating the appropriateness of the Group’s methodology and
significant assumptions used to determine the deferral periods
applied to initial and subsequent listings revenue against the
requirements of Australian Accounting Standards

• Assessing the mathematical accuracy of the Group’s calculations

of the deferral periods by recalculating revenue recognised
and revenue received in advance for a sample of initial and
subsequent listing fees, using the Group’s methodology

• Assessing the reasonableness of the Group’s disclosures in
the financial report against the requirements of Australian
Accounting Standards.

104 ASX Annual Report 2021 / Independent auditor’s report to the members of ASX Limited continued

Independent auditor’s report to the members of ASX Limited continued

Other information
The directors are responsible for the other information. The other
information comprises the information included in the annual report
for the year ended 30 June 2021, but does not include the financial
report and our auditor’s report thereon. Prior to the date of this
auditor's report, the other information we obtained included the
directors’ report. We expect the remaining other information to be
made available to us after the date of this auditor's report.

Our opinion on the financial report does not cover the other
information and we do not and will not express an opinion or any
form of assurance conclusion thereon.

In connection with our audit of the financial report, our responsibility
is to read the other information and, in doing so, consider whether
the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit, or otherwise appears
to be materially misstated.

If, based on the work we have performed on the other information
that we obtained prior to the date of this auditor’s report, we conclude
that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.

When we read the other information not yet received, if we conclude
that there is a material misstatement therein, we are required to
communicate the matter to the directors and use our professional
judgement to determine the appropriate action to take.

Responsibilities of the directors for the
financial report
The directors of the Company are responsible for the preparation
of the financial report that gives a true and fair view in accordance
with Australian Accounting Standards and the Corporations Act
2001 and for such internal control as the directors determine is
necessary to enable the preparation of the financial report that
gives a true and fair view and is free from material misstatement,
whether due to fraud or error.

In preparing the financial report, the directors are responsible for
assessing the ability of the Group to continue as a going concern,
disclosing, as applicable, matters related to going concern and using
the going concern basis of accounting unless the directors either
intend to liquidate the Group or to cease operations, or have no
realistic alternative but to do so.

Auditor’s responsibilities for the audit of the
financial report
Our objectives are to obtain reasonable assurance about whether the
financial report as a whole is free from material misstatement, whether
due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with the Australian
Auditing Standards will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the
basis of the financial report.

A further description of our responsibilities for the audit of
the financial report is located at the Auditing and Assurance
Standards Board website at: https://www.auasb.gov.au/admin/
file/content102/c3/ar1_2020.pdf. This description forms part of
our auditor's report.

Report on the Remuneration Report
Our opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 43 to
60 of the directors’ report for the year ended 30 June 2021.

In our opinion, the Remuneration Report of ASX Limited for the year
ended 30 June 2021 complies with section 300A of the Corporations
Act 2001.

Responsibilities

The directors of the Company are responsible for the preparation
and presentation of the remuneration report in accordance with
section 300A of the Corporations Act 2001. Our responsibility is
to express an opinion on the remuneration report, based on our
audit conducted in accordance with Australian Auditing Standards.

PricewaterhouseCoopers

Voula Papageorgiou
Partner

Sydney, 19 August 2021

ASX Annual Report 2021 / Independent auditor’s report to the members of ASX Limited continued

105

Key financial ratios

Year ended 30 June
Basic earnings per share (EPS)

Diluted EPS

Underlying EPS

Dividend per share – interim

Dividend per share – final

Dividend per share – special

Statutory return on equity

Underlying return on equity

EBITDA/operating revenue

EBIT/operating revenue

Total expenses (including depreciation and amortisation)/
operating revenue

Capital expenditure ($m)

Net tangible asset backing per share

Net asset backing per share

Shareholders’ equity as a % of total assets (excluding
participants’ balances)

Shareholders’ equity as a % of total assets (including
participants’ balances)

Share price at end of period

Ordinary shares on issue at end of period

Weighted average number of ordinary shares
(excluding treasury shares)

Market value of ordinary shares on issue at end of period ($m)

Market to book ratio at end of period

Full-time equivalent permanent staff
Number at period end

Average during the period

Notes
1

5,6

FY17
224.5c

224.5c

102.0c

99.8c

11.4%

76.3%

70.3%

29.7%

$50.3

$7.59

$20.19

76.2%

29.6%

$53.61

FY18
230.0c

230.0c

240.4c

107.2c

109.1c

11.5%

12.0%

76.2%

70.5%

29.5%

$54.1

$7.79

$20.38

89.1%

30.5%

$64.39

FY19
254.1c

254.1c

114.4c

114.3c

129.1c

12.8%

75.1%

69.6%

30.4%

$75.1

$7.53

$20.23

86.5%

25.5%

$82.37

FY20
257.6c

257.6c

265.4c

116.4c

122.5c

13.6%

14.0%

74.9%

69.5%

30.5%

$80.4

$6.32

$19.22

78.5%

21.4%

$85.38

FY21
248.4c

248.4c

112.4c

111.2c

13.1%

73.0%

67.4%

32.6%

$109.8

$6.04

$19.30

85.3%

22.5%

$77.71

193,595,162

193,415,430

193,507,104

193,576,187

193,587,739

193,591,795

$10,379

2.66

$12,466

3.16

$15,946

4.07

$16,529

4.44

$15,044

4.03

554

556

587

560

689

650

726

709

748

742

1. Based on statutory net profit after tax (NPAT) including significant items and weighted average number of shares.
2. Based on underlying NPAT excluding significant items and weighted average number of shares.
3. Based on statutory NPAT including significant items.
4. Based on underlying NPAT excluding significant items.
5. Operating revenue excludes interest and dividend revenue (underlying).
6. EBITDA – earnings before interest, tax, depreciation and amortisation; EBIT – earnings before interest and tax.

These metrics along with total expenses exclude significant items.
7. Weighted average number of ordinary shares used to calculate EPS.

106 ASX Annual Report 2021 / Key financial ratios

Transaction levels and statistics

Year ended 30 June

Listings and Issuer Services

Total domestic market capitalisation ($bn) – period end

Total number of listed entities (includes stapled entities) – period end

Number of new listings

Average annual listing fee

Initial capital raised ($m)

Secondary capital raised ($m)

Other secondary capital raised including scrip-for-scrip ($m)

Total capital raised ($m)

Number of new warrant series quoted

Total warrant series quoted

Cash market

Trading days

Total cash market trades (‘000)

Average daily cash market trades

Continuous trading ($bn)

Auctions ($bn)

Centre Point ($bn)

Trade reporting ($bn)

Total cash market value ($bn)
Average daily on-market value ($bn)

Average daily value (including trade reporting) ($bn)

Average trade size

Average trading fee per dollar of value (bps)

Velocity (total value/average market capitalisation)1
Number of dominant settlement messages (m)
1 Total value transacted on all venues.

FY17

FY18

FY19

FY20

FY21

$1,777

2,239

152

$35,419

$14,652

$37,160

$4,156

$55,968

1,828

2,827

$1,957

2,285

137

$37,569

$25,693

$43,022

$12,998

$81,713

1,967

2,976

$2,069

2,269

111

$41,356

$37,402

$38,830

$9,783

$86,015

1,849

2,789

$1,918

2,188

$42,214

$26,964

$65,033

$5,193

$97,190

2,060

2,516

$2,498

2,228

176

$40,341

$40,574

$50,561

$11,359

$102,494

867

2,418

253

252

255

254

266,433

1,053,096

$735.447

$236.983

$107.043

$167.377

292,528

1,160,826

$677.893

$262.126

$106.481

$185.316

359,985

1,428,512

$722.111

$333.979

$113.030

$211.568

460,789

1,807,015

$995.319

$409.876

$120.436

$266.053

384,150

1,512,400

$994.431

$363.198

$106.134

$217.171

$1,246.850
$4.267

$1,231.816
$4.153

$1,380.688
$4.639

$1,791.684
$5.983

$1,680.934
$5.763

$4.928

$4,680

0.37

88%

17.8

$4.888

$4,211

0.37

83%

17.9

$5.479

$3,835

0.37

87%

19.6

$7.026

$3,888

0.36

107%

22.5

$6.618

$4,376

0.36

92%

22.7

ASX Annual Report 2021 / Transaction levels and statistics

107

Transaction levels and statistics continued

Year ended 30 June

Equity options (excluding ASX SPI 200)
Trading days (exchange-traded options)

Total contracts traded – equity options (‘000)
Single stock options

Index options and futures

Average daily single stock options contracts

Average daily index options contracts

Average fee per derivatives contract

Futures
Trading days (futures and options)

Total contracts traded – futures (‘000)
ASX SPI 200

90 day bank bills

3 year bonds

5 year bonds

10 year bonds

20 year bonds

30 day interbank cash rate

Agricultural

Electricity
Other1
NZ$ 90 day bank bills

Total futures

Total contracts traded – options on futures (‘000)
ASX SPI 200

3 year bonds

Overnight 3 year bonds

Intraday 3 year bonds
10 year bonds2
Electricity
Other3

Total options on futures

Total futures and options on futures contract volume (‘000)

Daily average contracts – futures and options

Average fee per contract – futures and options

OTC markets
Total notional cleared value ($bn)4

Open notional cleared value ($bn) – period end
1 Other includes VIX and sector futures.
2 10 year bonds includes overnight and intraday 10 year bonds.
3 Other includes agricultural and 90 day bank bills.
4 Cleared notional value is double sided.

FY17

253

93,295

10,388

368,755

41,060

$0.21

FY18

252

80,091

12,461

317,822

49,449

$0.24

FY19

252

73,825

11,282

292,957

44,770

$0.23

FY20

255

65,894

9,842

258,406

38,596

$0.24

FY21

254

56,887

5,328

223,964

20,975

$0.19

256

255

257

256

12,255

28,931

53,233

41,697

545

2,455

344

102

1,422

141,075

202

152

478

460

1,343

142,418

556,321

$1.39

13,782

33,226

56,041

47,729

383

1,952

371

149

1,697

155,414

140

314

344

955

156,369

613,211

$1.36

15,994

34,698

60,488

51,883

256

4,268

413

112

2,329

170,534

227

279

610

1,274

171,808

673,757

$1.36

19,246

24,967

58,091

56,772

190

5,743

539

118

2,354

168,115

177

269

508

1,125

14,425

12,833

45,598

1,138

65,371

201

527

241

786

205

2,240

143,565

116

235

169,240

658,522

$1.44

143,800

561,720

$1.49

$5,165.949

$2,924.287

$6,314.322

$3,773.703

$9,710.616

$12,454.307

$5,200.102

$7,207.582

$5,098.019

$3,101.448

108 ASX Annual Report 2021 / Transaction levels and statistics continued

Transaction levels and statistics continued

Year ended 30 June

Austraclear

Settlement days

Transactions (‘000)
Cash transfers

Fixed interest securities

Discount securities

Foreign exchange

Other

Total transactions (‘000)

Average daily settlement volume

Securities holdings ($bn) – monthly average

Securities holdings ($bn) – period end

FY17

FY18

FY19

FY20

253

582

741

146

252

605

770

146

253

610

812

147

255

645

975

131

FY21

254

565

1,100

103

1,479

5,844

$1,915.4

$1,860.3

1,531

6,076

$1,908.5

$1,948.8

1,578

6,239

$2,003.7

$2,054.5

1,757

6,889

$2,142.0

$2,358.2

1,774

6,984

$2,573.8

$2,667.4

Average settlement and depository fee (including portfolio holdings)
per transaction (excludes registry services revenue)

$16.34

$16.63

$16.88

$16.55

$17.19

ASX Collateral ($bn) – average

ASX Collateral ($bn) – period end

System uptime (period average)
ASX Trade

CHESS

Futures trading

Futures clearing

Austraclear

Technical services (number at period end)

ASX distribution platform
Australian Liquidity Centre cabinets

Connection services
ASX Net connections

ASX Net service feeds

Australian Liquidity Centre service connections

ASX service access
ASX ITCH access

Futures ITCH access

ASX market access
ASX sessions

ASX gateways

ASX liquidity cross-connections

ASX OUCH access

Futures gateways

Futures liquidity cross-connections

$10.3

$16.2

$19.9

$23.5

$21.9

$22.4

$26.9

$43.4

$18.2

$4.1

99.79%

100.00%

99.98%

100.00%

99.99%

100.00%

99.98%

100.00%

99.72%

100.00%

285

123

437

871

1,033

179

199

334

301

112

444

984

922

160

251

381

324

104

447

1,068

886

155

329

482

326

103

455

1,078

882

160

245

378

368

103

452

1,170

832

139

104

203

349

ASX Annual Report 2021 / Transaction levels and statistics continued

109

Shareholder information

ASX Limited – ordinary shares
ASX has ordinary shares on issue. These are listed on the Australian
Securities Exchange under code: ASX. Details on trading activity are
published daily in most major Australian newspapers (print, online
and mobile) and by electronic information vendors.

At a general meeting, every shareholder present in person or by
direct vote, proxy, attorney or representative has one vote on a
show of hands and, on a poll, one vote for each fully paid share
held unless that share is a default share.

The ASX Constitution classifies default shares as any share held
above the 15% voting power limit by one party and its associates.

Distribution of shareholdings as at 29 July 2021

Number of shares
held
1 to 1,000

1,001 to 5,000

5,001 to 10,000

10,001 to 100,000

100,001 and over

Total

Number of
holders
42,471

8,761

724

602

Number of
shares
13,269,254

17,455,150

5,064,308

18,643,928

139,162,522

52,647

193,595,162

% of issued
capital
6.85%

9.02%

2.62%

9.63%

71.88%

100%

Marketable parcel
As at 29 July 2021, there were 383 holders holding less than a
marketable parcel of ASX shares.

A marketable parcel of ASX shares was seven shares, based on a
closing price of $77.44 on 29 July 2021.

Largest 20 shareholders as at 29 July 2021

Name

1. HSBC Custody Nominees

Number
of shares

45,185,106

2. J P Morgan Nominees Australia Pty Limited

35,057,543

3. BNP Paribas Nominees Pty Limited

4. Citicorp Nominees Pty Limited

5. National Nominees Limited

6. Australian Foundation Investment
Company Limited

7. Milton Corporation Limited

8. Netwealth Investments Limited

9. BKI Investment Company Limited

10. Djerriwarr Investments Limited

11. Pacific Custodians Pty Limited

12. The Senior Master of the Supreme Court

13. Mutual Trust Pty Ltd

14. Law Venture Pty Limited

15. Broadgate Investments Pty Ltd

16. AMP Life Limited

17. Navigator Australia Ltd

18. Raffael Pty Ltd

18. Mr Michael Denis Briody

18. Mr Leslie Guy Julian Paynter

18. Mr Kevin Joseph Troy

18. Mr Gilles Thomas Kryger

18. Vaucluse Skyline Pty Limited

18. Trevorann Investments Pty Ltd

30,970,655

10,274,389

3,087,041

1,432,000

548,965

502,464

397,750

384,500

359,712

337,032

335,350

308,999

241,599

241,460

230,469

183,474

183.474

183,474

Total

130,996,061

% of
issued
capital

23.34

18.11

16.00

5.31

1.59

0.74

0.28

0.26

0.21

0.20

0.19

0.17

0.16

0.12

0.09

67.7

On-market buy-back
There is no current on-market buy-back.

Shareholders’ calendar

FY21

Substantial shareholders as at 29 July 2021
The following organisations have disclosed a substantial shareholder
notice to ASX.

Name

UniSuper Limited

BlackRock Group

AustralianSuper Pty Limited

State Street Corporation

Vanguard Group Inc

Number
of shares

% of voting
power

25,491,073

11,712,985

11,620,588

9,790,634

9,684,443

13.17

6.05

6.00

5.06

5.00

Full-year financial results announcement

19 August 2021

Full-year dividend
Ex-dividend date

Record date for dividend entitlements

Payment date
Annual General Meeting

6 September 2021

7 September 2021

29 September 2021
29 September 2021

FY221

Half-year financial results announcement

10 February 2022

Half-year dividend
Ex-dividend date

Record date for dividend entitlements

Payment date

3 March 2022

4 March 2022

23 March 2022

Full-year financial results announcement

18 August 2022

Full-year dividend
Ex-dividend date

Record date for dividend entitlements

Payment date
Annual General Meeting
1 Dates are subject to final ASX Board approval.

8 September 2022

9 September 2022

28 September 2022
28 September 2022

110 ASX Annual Report 2021 / Shareholder information

Shareholder information continued

Annual General Meeting 2021
The ASX Annual General Meeting will be held at 10am (Sydney time)
on Wednesday 29 September 2021. Shareholders can participate
online. Details about how shareholders can view and participate
in the meeting are set out on ASX’s website and in the Notice
of Meeting.

ASX’s Notice of Annual General Meeting has been released on the
Market Announcements Platform.

The proceedings will be archived on the ASX website for viewing
after the live event.

The external auditor will be present at the meeting to answer
questions relevant to the external audit.

Electronic communication
ASX encourages shareholders to receive information electronically.

Shareholders who currently receive information by post can log in
at www.linkmarketservices.com.au to provide their email address
and elect to receive electronic communications.

ASX emails shareholders when important information becomes
available such as financial results, dividend statements, notices of
meeting, voting forms and annual reports.

Electronic communication allows ASX to communicate with
shareholders quickly and reduces ASX’s paper usage.

For further information, please contact ASX’s share
registry, Link Market Services, on 1300 724 911 or at
asx@linkmarketservices.com.au

Important information about dividend
payments
Australian and New Zealand shareholders receive their dividend
payments by direct credit only. No cheque payments are made to
these shareholders.

If you have not already done so, please provide your direct credit
instructions by visiting www.linkmarketservices.com.au

ASX Annual Report 2021 / Shareholder information continued

111