ASX Limited ABN 98 008 624 691
20 Bridge Street
Sydney NSW 2000
PO Box H224
Australia Square NSW 1215
Investor Support 13 12 79
asx.com.au
16 August 2024
Australian Securities and Investments Commission
ASX Market Announcements Office
Mr Benjamin Cohn-Urbach
ASX Limited
Senior Executive Leader, Market Infrastructure
20 Bridge Street
Level 5, 100 Market Street
SYDNEY NSW 2000
SYDNEY NSW 2000
ASX LIMITED – RESULTS FOR ANNOUNCEMENT TO THE MARKET
In accordance with the Listing Rules, ASX encloses for immediate release the following information:
1. Appendix 4E
2. ASX Limited Annual Report 2024
ASX will hold a briefing on the full-year results from 10:00am (Sydney time) today. Register to view the briefing here.
The webcast will be archived on ASX’s website for viewing after the view event.
Release of market announcement authorised by:
The Board of ASX Limited
Further enquiries:
Media
Mark Roberts
Head of Communications
M
+61 466 328 581
E
mark.roberts@asx.com.au
David Park
Manager, Media and Communications
T
+61 2 9227 0010
M
+61 429 595 788
E
david.park@asx.com.au
Analysts and Investors
Simon Starr
GM, Investor Relations and Sustainability
T
+61 2 9227 0623
M
+61 416 836 550
E
simon.starr@asx.com.au
Preliminary financial report for the year ended 30 June 2024 as required by ASX Listing Rule 4.3A.
ASX
Appendix 4E
Results from announcement to the market
$m
Up/Down
Movement %
Revenue from ordinary activities 1
1,580.8
up
12.5
Revenue from ordinary activities excluding interest income 1
1,041.1
up
4.0
Net profit before tax attributable to members (including significant items) 2
681.5
up
52.4
Net profit after tax from ordinary activities attributable to members
(including significant items) 2
474.2
up
49.4
Underlying net profit after tax (excluding significant items) 2
474.2
down
(3.4)
1. Revenue from ordinary activities for the current period includes a share of net loss of $9.9 million (pcp - $15.5 million net loss), from equity accounted investments held during the period.
ASX holds a 49.4% investment in Sympli Australia Pty Ltd. ASX disposed of its 44.7% holding in Yieldbroker Pty Limited on 31 August 2023.
2. There were no significant items for the year ended 30 June 2024. Total significant items reported for FY23 was $173.8 million post-tax loss ($259.2 million pre-tax loss). The material
significant item for FY23 was the derecognition of CHESS Replacement project costs.
Dividend Information
Amount
per Share
(cents)
Franked
amount
per Share
(cents)
Tax Rate
for Credit
Interim 2024 dividend per share (paid 27 March 2024)
101.2
101.2
30%
Final 2024 dividend per share determined
106.8
106.8
30%
The final 2024 dividend determined, of 106.8 cents per share, was 4.7% down compared to the final 2023 dividend of 112.1 cents per share,
and reflects the lower underlying earnings compared to the prior comparative period (pcp), and a dividend payout ratio of 85% of underlying
net profit after tax applied, compared to the 90% dividend payout ratio applied for the final 2023 dividend.
Shareholders' calendar
Full-year financial results announcement
Friday, 16 August 2024
Full-year dividend
Ex-dividend date
Wednesday, 21 August 2024
Record date for dividend entitlements
Thursday, 22 August 2024
Dividend payment date
Friday, 20 September 2024
Annual General Meeting
Monday, 28 October 2024
The Company's dividend reinvestment plan (DRP) will not apply to the FY24 final dividend.
Results for announcement to the market
30 June 2024
30 June 2023
Net tangible assets per security 1
$5.62
$5.72
1. Net tangible assets exclude intangible assets and deferred tax assets. The prior comparative reported net tangible assets per security was restated to be in line with current period reporting.
This information should be read in conjunction with the 2024 Annual Report.
Additional information supporting the Appendix 4E disclosure requirements can be found in the Directors’ Report and the consolidated financial
statements for the year ended 30 June 2024.
This report is based on the consolidated financial statements for the year ended 30 June 2024 which have been audited by PricewaterhouseCoopers.
This page has intentionally been left blank
ASX
Annual Report 2024
Important information about forward-looking statements. This report contains forward-looking statements.
Please refer to page 136 for additional information about the use of forward-looking statements in this report.
Our purpose
To power a stronger economic future by
enabling a fair and dynamic marketplace for all
Our vision
ASX is in a new era. We are the market’s
choice, inspiring confidence and trust
Our purpose, vision
and strategy
Our strengths set us apart
Unmatched connectivity and liquidity
Our listed and derivatives markets,
deep liquidity, extensive data, breadth of
services and deep expertise set us apart
Trusted regional champion
We have a regional focus with
a global customer base
Deep experience in regulated environments
Our licence obligations require excellence.
We have a track record in delivering value
within highly regulated markets
ASX
Structural tailwinds: our
long term growth drivers
Net zero transition
Increasing demand for
technology and data
Growing Australian
capital base
There is beauty in a connected market.
ASX continues to champion the value of public markets as the
cornerstone for our nation’s economic wellbeing.
Innovation and economic growth are best supported when capital
is allocated to the most attractive opportunities.
Investors seeking valuation integrity and liquidity can rely on public
markets to offer transparency, integrity and timely price discovery.
Listed markets provide opportunities for a more participatory and
inclusive economic system. They offer a level playing field allowing
all Australians to participate in the wealth generation that powers
our economy.
ASX: powering a stronger economic future
by enabling a fair and dynamic marketplace
for all.
BASX Annual Report 2024 | About ASX
Contents
Our purpose, vision and strategy
IC
Five year strategy
1
FY24 highlights
3
Chair’s letter
4
CEO’s letter
6
Operating and financial review
8
Sustainability
22
Governance
42
Remuneration report
52
Directors’ report
70
Auditor’s independence declaration 72
Financial Report
74
Key financial ratios
128
Transaction levels and statistics
129
Shareholder information
133
Glossary
135
ASX Limited ABN 98 008 624 691 | asx.com.au
ASX acknowledges the Traditional
Owners of Country throughout
Australia. We pay our respects to
Elders past and present.
Artwork By: Lee Anne Hall,
My Country My People
ASX will hold its Annual General Meeting at 10.00am (Sydney time) on 28 October 2024.
Further details are available at www.asx.com.au/agm
ongoing focus on regulatory
commitments, technology
modernisation and business efficiency
increasing focus on
growth opportunities
Five year strategy
Strategic horizons
Strategic pillars
FY28 outcomes
What we will measure
Supported by four strategic pillars
HORIZON 1
RESET
Restore confidence, focus
on fundamentals
HORIZON 2
EMBED AND GROW
Increase speed, quality and
value, drive future growth
One ASX
> A vibrant and inclusive
culture inspiring growth
> Accountable, empowered
and engaged teams
> Employee engagement
score
> Leadership index
> Risk culture score
Digital by design
> Customer and people
experiences with ASX
are easy
> High quality data
and analytics drive
customer value
> Customer effort score
> People effort score
> Improved value delivered
to customers through data
products and services
Great
fundamentals
> A modern technology
stack that is sustainable,
secure and resilient
> High quality and reliable
delivery for the market
> Mature risk compliance
and operating frameworks
> Sustainable shareholder value
> Delivery of new trading,
clearing and settlement
platforms
> Maturity of key business
frameworks
> Return on equity
Customer driven
> Working effectively with our
customers, solving challenges
and delivering value
> Improved market quality
> Customer satisfaction
> Revenue generated from
new initiatives
> Market quality measures
> RepTrak reputation score
1
ASX
Portfolio of high
quality businesses
Securities
& Payments
Listings
Markets
Technology
& Data
163M+
total futures and options
on futures contracts
150,000+
company announcements
published on our platform
378M+
total cash market trades
For our customers
Value chain
ASX creates value in different ways
through the connectivity we provide
across the market lifecycle.
Overview
Trading
Settlements,
payments and
register
Raising
capital
Access and
connectivity
Data and
insights
Clearing
2
ASX Annual Report 2024 | FY24 Highlights
2
FY24
For our shareholders
For our people
89%
of our people believe that
their direct manager genuinely
cares about their wellbeing
91%
understand the desired risk
culture that has been set for
the organisation
90%
of our people understand how
their role contributes towards
the ASX vision and strategy
$1.03B
Operating revenue1
2.4%
$604.8M
earnings before interest
and tax (EBIT)2
4.8%
Highlights
1. Operating revenue as per Group segment reporting.
2. Excludes significant items.
$474.2M
Statutory net profit after tax
49.4%
208.0C
per share: FY24 total dividend
8.9%
3
Dear fellow shareholders,
Last year I spoke about the challenge
and change ASX had been through and I
acknowledged confidence in the Group had
been tested. More recently, ASIC notified
us that they had filed civil proceedings
against ASX Limited. The proceedings
concern certain statements made in
February 2022 by ASX in relation to the
previous CHESS replacement project. We
recognise the significance and seriousness
of these proceedings and are currently
in the process of carefully reviewing and
considering the allegations. Notwithstanding
this serious matter, the team at ASX have
remained focused on delivering for our
customers and shareholders. We have laid
out a clear strategy and much has been
accomplished in the last year.
Strategy and financial performance
Since refreshing our values last year, we
have fully embraced the One ASX approach
which has helped drive progress against
our five year strategy. Our key regulatory
deliverables for FY24 were achieved within
expected timeframes and we have provided
additional detail of the major technology
projects underway – this includes CHESS
Replacement and the upgrades to the
trading and derivatives clearing platforms.
Releasing the technology roadmap at our last
Investor Forum was important as it provides
a level of visibility on how we expect to
sequence the work to manage for delivery
risk, change load, industry impacts and cost.
We were cognisant the technology roadmap
had to be underpinned by an investment
outlook, which is why we also provided a
medium term view of our capital expenditure
expectations. This should assure shareholders
that ASX has not taken a short term approach
and we have a clear plan to invest for
future growth and innovation.
The strength and resilience of ASX’s
diversified model was once again clearly
demonstrated with operating revenue
reaching a record $1.03 billion in FY24, up
2.4% on the prior year, and achieved in
challenging market conditions. Total expenses
increased by 14.7% compared to FY23, which
is in line with the guidance we set and reflects
investment aligned to our strategy. Underlying
net profit after tax (NPAT) decreased by
3.4% to $474.2 million.
The Board was supportive of the elevated
level of operating expenses during the year
as it was needed to meet the heightened
regulatory expectations and the pace of
technology change underway. However, we
also recognised the need to address our
expense profile and a targeted restructure and
prioritisation process was undertaken in 1H24
to reduce non-project related headcount
by approximately 3% which provided annual
savings of around $11 million. This targeted
action demonstrates we are prepared to
make difficult decisions and we continue to
progress expense management initiatives.
A key achievement for the period was the
successful launch of ASX’s first corporate
bond which was strongly supported by
the debt market, raising $275 million.
The issuance took place in February
and forms part of ASX’s flexible capital
management strategy.
The Board determined a final dividend of
106.8 cents this year, taking total payments for
the year to 208.0 cents, which is within our
payout ratio range of between 80% and 90%
of underlying net profit after tax. In June, ASX
confirmed it intended to maintain this payout
range for the medium term.
Chair’s
letter
ASX continues to be a world class exchange and
we are home to more than 2,000 listed entities
in Australia with a combined market capitalisation
of approximately $2.8 trillion.
Dividends per share
in FY24
208.0C
Issued first
corporate bond
$275M
4
ASX Annual Report 2024 | Chair’s letter
Increased stakeholder engagement
During FY24 we took significant
steps to progress ASX’s technology
modernisation. A key component of this
is the CHESS Replacement project, where
we moved into delivery phase following
the announcement last November of a
new solution design. We are now working
with TATA Consultancy Services (TCS) to
deliver a modular technology platform for
clearing and settlement services. By the
end of this year ASX will have completed
two public consultations which will
provide an industry-informed view for
scope and implementation approach for
CHESS Replacement.
Stakeholder input has been key in reaching
this point and increased engagement
is central to our strategy. Over the year
we’ve observed how our actions in various
stakeholder forums have given rise to a
positive shift in industry sentiment. During
the year there were extensive workshops
and input from the CHESS Replacement
Technical Committee and the ASX Business
Committee. Critically, an additional
stakeholder forum was established in
FY24 to ensure ASX receives stakeholder
input on strategic matters related to cash
equities clearing and settlement services.
This is the role of the Cash Equities
Clearing and Settlement Advisory Group
(“Advisory Group”) which was first convened
in September 2023 under independent
Chair Alan Cameron AO.
As operator of critical market infrastructure,
what we do matters and ongoing quality
dialogue with our stakeholders is key to
demonstrating how we contribute to
the market. Since our decision to pause
and reassess the CHESS Replacement
project in November 2022, I, along with
other ASX representatives, appeared
several times before the Parliamentary
Joint Committee (PJC) on Corporations
and Financial Services to discuss various
aspects of the project. A final report from
the PJC was delivered in April and contained
recommendations for government to
consider, but which do not require any
immediate change or action from ASX.
Remuneration
The Board recognises the importance of
ensuring our remuneration framework aligns
with shareholder outcomes. This year we
have reweighted the framework toward long
term incentives with the long term variable
reward (LTVR) program now extended to
all members of the Executive Team under
the CEO. We have also sharpened our focus
on the execution of the five year strategy
as measured by the ASX Scorecard. This
has helped the Board support a culture of
accountability for performance. (More detail
on ASX’s executive remuneration framework
can be found at page 54).
Board renewal
This year I am pleased to welcome Wayne
Byres to the ASX Board. Wayne joined us in
May as a non-executive director and comes
with over 30 years’ experience in financial
services regulation, risk management,
governance and public policy in both
domestic and international roles. He has held
high-profile supervisory roles including as
the former Chair of the Australian Prudential
Regulation Authority (APRA) and as the
Secretary General of the Basel Committee on
Banking Supervision. His appointment further
enhances the breadth of experience and skills
on the ASX Board.
Next month Yasmin Allen AM will attend
her final ASX Board meeting having
confirmed her intention to retire and step
down earlier this year. Yasmin has served
on the Board since February 2015 and our
board discussions have benefitted from her
experience, judgement and counsel. The
directors and I would like to express our
thanks for her many years of diligent service.
Board renewal has continued to be a key
focus since I became Chair in 2021, and
Wayne is the fifth new non-executive director
we’ve welcomed to the ASX Board in the
past three years.
Looking ahead
Under the capable leadership of CEO
Helen Lofthouse and her Executive Team,
ASX has made significant strides in executing
our strategic vision. We still have work to do
and we have been progressing our strategic
outcomes with a level of transparency and
openness that shows we are willing to be
judged on our actions.
ASX continues to be a world class exchange
and we are home to more than 2,000 listed
entities in Australia with a combined market
capitalisation of approximately $2.8 trillion.
Our recent analysis shows how we’ve
continued to grow. For the past seven years
to December 2023 we’ve added $441 billion
in net new capital to ASX and this trend has
continued in 2024.
Our exchange stands on a strong foundation,
poised to capitalise on several key trends;
the growing capital base in Australia, the
transition to net zero, and the increasing use
of data present long term opportunities. I am
optimistic about the future of ASX and I am
grateful for the support of our employees,
our customers, and our shareholders.
Together, we will continue to drive
ASX forward.
Sincerely,
Damian Roche | Chair
Damian Roche | Chair
5
Dear shareholders,
When we set our FY28 vision, we wanted
to set out a bold ambition. The markets
and services which support our customers
need to evolve dynamically in the face of
rapid change and that is reflected in our
‘new era ASX’ vision. And this is reflected
too in the reset which has been underway
across our organisation, where we have
embedded a new five year strategy,
refreshed senior leadership, delivered key
foundational changes, and are continuing
to lift our stakeholder engagement and
build confidence with our stakeholders.
On 13 August 2024, ASIC filed civil
proceedings against ASX Limited in the
Federal Court of Australia concerning certain
statements made in February 2022 by ASX
in relation to the previous CHESS replacement
project, which was paused in November
2022. We recognise the significance and
serious nature of these proceedings and
cooperated fully with ASIC’s investigation.
We are now carefully reviewing and
considering the allegations.
We play a critical role in the centre of
Australia’s financial markets, and continue
to focus on supporting and delivering for
our customers and shareholders. I’m proud
of the strong progress we’ve made as an
organisation over the past two years as we
work towards our five year strategy and
delivering our vision of a ‘new era ASX’.
Delivering on our strategic outcomes
While we are just 14 months into our five year
strategy, I’m proud of what we’ve achieved
as we met the challenging agenda set out
for FY24 by empowering leaders to orient
our teams toward disciplined execution of
our outcomes. We have prioritised our key
focus areas of regulatory commitments
and technology modernisation, as these are
central to ASX’s licences and underpin long
term shareholder value.
We have made significant progress on
our regulatory commitments, producing a
series of important reports and initiatives
that provide additional transparency to our
regulatory agencies and other stakeholders
on how we are changing and improving.
This included three special reports required
by ASIC. These reports provided detail on our
roadmap for ongoing support of CHESS, the
implementation plan of recommendations
arising from an external review into aspects of
the previous CHESS replacement project, and
an assessment of further uplift to our delivery
capability. In FY25 we will continue to embed
recommendations from these reports as well
as any recommendations from the annual
Financial Stability Standards assessment,
which will be published in the next few
months by the Reserve Bank of Australia.
We continue to make progress on CHESS
Replacement following the announcement last
November to proceed with a product based
solution delivered by global technology firm
TATA Consultancy Services. This product is
being used in several other global markets and
ASX’s proposal to implement this across two
main releases reflects how we’ve listened to
industry feedback. The staged approach to
implementation, where we are delivering the
clearing services first in Release 1, followed
by delivery of settlement, subregister and
additional clearing enhancements in Release
2 is designed to manage several factors,
including reducing delivery risk and allowing
for industry readiness. Industry consultation
for Release 1 has concluded and ASX is
working toward implementing this release
in 2026. In the fourth quarter of 2024 we
expect to provide a response to consultation
for Release 2 which includes ASX’s approach
should Australia move to shorten the
settlement cycle to T+1.
In June we shared our indicative technology
roadmap that illustrates how we’ve
sequenced our plans to support technology
modernisation. The roadmap provided a view
out to FY27 and beyond of our major projects,
which include CHESS Replacement and
the upgrade to the trading and derivatives
clearing platforms. Work under this roadmap
is underway, and in FY24 included the delivery
of new services on the cash market trading
platform, migration of multiple data services
away from legacy systems, and replacement
of infrastructure in our data centre.
We were also transparent about the
investment required to realise the milestones
on our roadmap. At our Investor Forum
in June, we provided FY25 guidance for
technology capital expenditure of between
$160 million and $180 million and we said this
elevated range was expected for the medium
term before starting to reduce.
Technology investment is critical but we’re
also very aware that cost discipline overall is
crucial. We have had to make some difficult
decisions as we manage an elevated level of
expenditure given the heightened regulatory
expectations and the velocity of technology
change. We sought to address this earlier in
the year, conducting a targeted restructure
in February that delivered circa $11 million in
annual savings for operational expenditure
as well as carefully prioritising our strategic
outcomes and ensuring that we have the right
capabilities in place. Some of the pressures on
expenses have been one-off in nature, with
$8.4 million in regulatory costs largely relating
to legal costs and costs associated with the
audits of the special reports.
Our expense management initiatives are
ongoing and we continue to focus on
business efficiencies such as reducing the use
of consultants, investing in simplification and
automation and strategic procurement.
Customer driven
CEO’s
letter
“While we are just 14 months into our five year strategy, I’m
proud of what we’ve achieved as we met the challenging
agenda set out for FY24 by empowering leaders to orient
our teams toward disciplined execution of our outcomes.”
6
ASX Annual Report 2024 | CEO’s letter
While we remain firmly focused on executing
the first phase of our strategy, we have also
continued work on our growth opportunities.
These are very much customer driven
opportunities that can be pursued alongside
the delivery commitments of our strategic
priorities. Our customers’ transition to net
zero is one key area. As an exchange, we are
uniquely positioned to offer the products,
connectivity and price transparency to
support our customers by providing liquid
and transparent markets to hedge transitional
price risk. Within our Markets division we
are developing an integrated ecosystem of
products that builds upon our core electricity
derivatives business.
We recently launched new environmental
futures products as part of this, and later this
month we will extend this to include a new
gas contract.
Market demand has also continued to inform
growth in listed investment products. Once
again, ASX exchange traded funds (ETFs)
continue to be a bright spot with 59 new
products admitted in FY24, among them the
first bitcoin ETF. Funds under management
for ETFs grew by an impressive 36% during
the year to reach a new record of $199 billion.
FY24 financial performance
The strength of ASX’s diversified business
model was once again highlighted in FY24 as
the Group delivered a record $1.03 billion in
revenue amid challenging market conditions.
Revenue growth was driven by the Markets
and Technology & Data divisions.
Markets revenue was $315.4 million, up 7.9%,
reflecting higher futures volumes where there
was significant growth in the 90 day bank bill
futures and 3 year and 10 year treasury bond
futures. Technology & Data revenue was up
5.9% to $255.1 million driven by an increase in
equities and futures market data distribution,
increased royalties and growth in customer
connections at the Australian Liquidity
Centre (ALC).
Lower cash market trading activity affected
our Securities & Payments division with
revenue down 1.1% to $255.6 million. Cyclically
lower capital markets activity also impacted
the Listings business with total revenue for
the division down 4.8% to $208.2 million.
Total expenses were up by 14.7% compared
to FY23, which was in line with guidance.
This was primarily driven by an increase in
employee costs to support the delivery on
our focus areas of regulatory commitments
and technology modernisation. We expect
this expense growth rate to fall to between
6% and 9% in FY25 as a result of the ongoing
expense management initiatives I mentioned
earlier in this letter.
Underlying net profit after tax (NPAT)
decreased by 3.4% to $474.2 million, while
statutory NPAT increased substantially as
the prior corresponding period included
the loss from the derecognition of the
CHESS Replacement project. Our resilient
performance has allowed ASX to deliver a final
dividend of 106.8 cents, taking total payments
for the year to 208.0 cents. This represents
a payout ratio of 85%, which is within the
Group’s guidance of between 80% and
90% of underlying NPAT.
Focus on people, evolving our culture
The culture within ASX is evolving, and we are
a different company today than we were a
year ago. One of the key changes we’ve seen
over the year has been the embedding of a
quarterly cadence of review that enables us to
closely track our strategy execution. This has
been underpinned by the development of the
ASX Scorecard which includes FY28 strategic
goals with progress measured against set
initiatives and outcomes.
ASX continues to strengthen its risk
culture and, as part of an annual all
employee survey on how we manage risk and
compliance, 81% of our employees responded
favourably which was an improvement of
three percentage points on the prior year.
We had record employee participation with
83% of our people completing the survey
and we will continue to focus on raising the
survey score further in FY25.
This year, ASX’s engagement score for our
people remained steady at 63% against a
backdrop of significant change. I’m confident
we are making improvements to the
workplace experience and we are supporting
our leaders to energise and engage teams
across ASX. This is further supported by a
key appointment to my leadership team,
as we welcomed Jane Franks as our new
Chief People Officer this year.
Our people come to work each day looking
to do their best and we want to support them
by being clear on our strategic outcomes and
how their work contributes to our purpose; by
improving processes and systems, providing
learning and development opportunities and
improving their overall workplace experience.
There are key projects underway to implement
new enterprise systems for People and Culture
and Finance that should improve the everyday
experience of our people. Another symbol of
our ‘new era ASX’ is the move of our Sydney
headquarters to a brand new building in Martin
Place in late 2025. The new location will place
ASX at the heart of Australia’s financial district.
I am energised and proud of the achievements
in FY24 and look forward to realising our vision.
There is much to look forward to in FY25 and
I am confident our work to create a stronger,
more resilient ASX will continue to deliver
long term value for all our stakeholders.
Sincerely,
Helen Lofthouse | Managing Director & CEO
Helen Lofthouse | Managing Director & CEO
Operating revenue,
up 2.4%
$1.03B
Earnings before interest and tax
(EBIT), down 4.8%
$604.8M
7
ASX
Statutory net profit after tax
($million)
480.9
498.6
508.5
317.3
474.2
FY21
FY20
FY22
FY23
FY24
Underlying return on equity
(ROE) (%)
13.1%
14.0%
13.7%
13.4%
13.0%
FY21
FY20
FY22
FY23
FY24
Operating and
financial review
Statutory earnings per share
(EPS) (cents)
FY21
248.4
FY20
257.6
FY22
262.7
FY23
163.9
FY24
244.8
Interim
Final
Dividends per share
(DPS) (cents)
111.2
122.5
120.0
112.1
106.8
112.4
116.4
116.4
116.2
101.2
FY21
FY20
FY22
FY23
FY24
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
ASX and its subsidiaries (together referred to as the Group),
and its ability to achieve its financial and other objectives.
8
ASX Annual Report 2024 | Operating and financial review
Technology & Data
Securities & Payments
› Information Services offers a range of
market data products including pricing
and trading data
› Technical Services facilitates market
access, connectivity, hosting and
co-location services in ASX's data
centre, the Australian Liquidity Centre
and global distribution through ASX Net
› Provides central counterparty clearing
and settlement services for equities
› Offers settlement, depository and
registry services for debt securities
› Facilitates the utilisation of debt
securities held in Austraclear as
collateral to meet obligations
via ASX Collateral
› Provides a payment platform for
high value payments, electricity
providers and property transactions
› Issuer Services utilises CHESS
technology to track legal title,
entitlements and holder details for
over 3 million holders with over
20 million unique security holdings
Markets
› Provides trading of futures and options
on interest rate, equity index, agriculture,
and energy products, and exchange
traded options over individual securities,
including international ETFs
› Provides cash market trading of equities,
warrants, ETF and debt securities
› Offers clearing of exchange-traded
derivatives and over-the-counter
interest rate and equity derivatives via
ASX Clear (Futures) and ASX Clear
Listings
› Provides an efficient regulated
framework for entities to raise capital
and source liquidity
› Offers a range of support services
to listed entities including education
programs, research and insights,
investor access and peer
group networking
› Efficient distribution facility for
quoted exchange traded funds (ETFs)
and debt securities
24%
Futures,
OTC Markets
and Equity
Options 1
6%
Cash
Market
Trading 1
10%
Technical
Services 1
25%
Technology
& Data 1
15%
Information
Services 1
6%
Cash Market
Clearing 1
6%
Issuer
Services 1
6%
Cash Market
Settlement 1
7%
Austraclear 1
20%
Listings 1
25%
Securities
& Payments 1
30%
Markets 1
20%
Listings 1
Business model and operating environment
ASX operates a significant part of the infrastructure that supports
Australia and New Zealand's financial markets. ASX is a multi-asset
class and integrated exchange group. The Group operates markets
for securities and derivatives, providing a full service offering across
listings, trading, clearing, settlement, registry, and information and
technical services.
The business is conducted through a number of regulated and
non-regulated legal entities. ASX holds market licences, clearing and
settlement facility licences and a benchmark administrator licence to
undertake its activities. ASX is subject to oversight by the Australian
Securities and Investments Commission (ASIC) and the Reserve Bank
of Australia (RBA), in addition to a number of overseas regulators.
ASX’s activities and revenues are grouped into four key businesses:
Listings, Markets, Technology & Data, and Securities & Payments.
These are each discussed separately later in this report.
It has been one year since ASX launched its five year strategy
defining our purpose, vision, strategic pillars and values with clear
organisational outcomes and measures of success that will guide,
prioritise and deliver sustainable value to our stakeholders.
The Group is currently in Horizon One of our strategy in which the
focus is on Great Fundamentals of the business entailing execution of
our regulatory commitments, technology modernisation and business
efficiency programs.
Group financial performance
Net profit after tax
The Group’s statutory net profit after tax (NPAT) for FY24 was
$474.2 million and statutory earnings per share (EPS) was
244.8 cents, both up 49.4% on the prior comparative period (pcp).
The FY23 statutory net profit was impacted by a significant item loss
of $173.8 million, mainly pertaining to the CHESS Replacement project
derecognition charge. There were no significant items in FY24.
The Group’s underlying NPAT for FY24 was $474.2 million, down 3.4%
on pcp. ASX's diversified business model has allowed the Group to
deliver a solid result against a mixed economic backdrop of cyclically low
capital markets activity, with signs of recovery towards the end of the
financial year, and continued tight monetary policy with elevated base
interest rates. Operating revenue for the period was $1,034.3 million,
up 2.4% on pcp with increased revenue from Markets and Technology
& Data offset by a softer result in the Securities & Payments and
Listings businesses. Total expenses were $429.5 million, up 14.7% on
pcp. This reflects an increased investment to uplift risk and compliance
capabilities, the modernisation of technology infrastructure, inflationary
increases and a higher ASIC supervision levy.
Net interest income for the period was $76.7 million, up 8.3% on pcp
as a result of the higher interest rate environment. Underlying EPS was
244.8 cents, down 3.5% on pcp, and underlying return on equity was
13.0%, down 40bps on pcp.
Dividends
The Board's dividend policy in FY24 is to pay between 80% and 90%
of underlying net profit after tax with the interim and final dividend
determined at a payout ratio of 85%.
ASX paid an interim dividend of 101.2 cents per share in March 2024 and
the directors have determined a final dividend of 106.8 cents per share.
The total interim and final dividends per share for FY24 of 208.0 cents
is 8.9% lower than the prior year and reflects the decrease in underlying
earnings and lower dividend payout ratio (FY23 payout ratio was 90%).
The final dividend will be paid on 20 September 2024.
The Dividend Reinvestment Plan (DRP) will not apply to the final dividend.
1. Percentages in chart represent revenue contribution to the Group.
9
Based on the Group segment reporting note
FY24
$m
FY23
$m
Variance fav/(unfav)
$m
%
Operating revenue
1,034.3
1,010.2
24.1
2.4
Operating expenses
(392.5)
(337.7)
(54.8)
(16.2)
EBITDA
641.8
672.5
(30.7)
(4.6)
Depreciation and amortisation
(37.0)
(36.9)
(0.1)
(0.3)
Total expenses
(429.5)
(374.6)
(54.9)
(14.7)
EBIT
604.8
635.6
(30.8)
(4.8)
Net interest income
76.7
70.8
5.9
8.3
Underlying profit before tax
681.5
706.4
(24.9)
(3.5)
Tax expense
(207.3)
(215.3)
8.0
3.7
Underlying profit after tax
474.2
491.1
(16.9)
(3.4)
Significant items
—
(173.8)
173.8
100.0
Statutory profit after tax
474.2
317.3
156.9
49.4
Underlying earnings per share (cents)
244.8
253.7
(8.9)
(3.5)
Statutory earnings per share (cents) 1
244.8
163.9
80.9
49.4
Dividends per share (cents)
208.0
228.3
(20.3)
(8.9)
Underlying return on equity (%)
13.0%
13.4%
(40bps)
Statutory return on equity (%)
13.0%
8.7%
430bps
1. Also known as basic and diluted earnings per share. As the Group has no potential ordinary shares that have a material impact on diluted EPS, the basic and diluted EPS is reported as the same.
Operating revenue
Operating revenue for FY24 was $1,034.3 million, up 2.4% as shown below.
FY24
$m
FY23
$m
Variance fav/(unfav)
$m
%
Listings
208.2
218.6
(10.4)
(4.8)
Markets
315.4
292.4
23.0
7.9
Technology & Data
255.1
240.8
14.3
5.9
Securities & Payments
255.6
258.4
(2.8)
(1.1)
Total operating revenue
1,034.3
1,010.2
24.1
2.4
The key components of operating revenue are:
> Listings revenue was $208.2 million, down 4.8%, driven by cyclically low capital markets activity during FY24.
> Markets revenue was $315.4 million, up 7.9%, reflecting higher futures volumes driven by global interest rate volatility, inflation and other
macroeconomic events, partly offset by a decline in cash equity market traded value.
> Technology & Data revenue was $255.1 million, up 5.9%, from a growth in demand for information and technical services.
> Securities & Payments revenue was $255.6 million, down 1.1%, due to lower activity across clearing and settlement services for cash equities trading
and capital markets partly offset by increased activity and issuance in debt markets.
More detail of drivers of revenue are included on pages 14 to 19.
ASX Annual Report 2024 | Operating and financial review
ASX
Operating and financial review
10
Total expenses
Total expenses were $429.5 million, up 14.7%. This was a result of an increase in employee expenses, equipment and administration expenses to
support ongoing investment in technology and risk management capabilities, as well as a higher ASIC supervision levy.
FY24
$m
FY23
$m
Variance fav/(unfav)
$m
%
Employee expenses 1
240.5
198.6
(41.9)
(21.1)
Occupancy
10.9
9.9
(1.0)
(10.1)
Equipment
57.6
52.6
(5.0)
(9.5)
Administration 1
47.3
43.7
(3.6)
(8.2)
Variable
13.0
12.2
(0.8)
(6.6)
ASIC levy
14.8
7.4
(7.4)
(100.0)
Operating expenses excluding regulatory expenses
384.1
324.4
(59.7)
(18.4)
Regulatory expenses
8.4
13.3
4.9
36.8
Total operating expenses
392.5
337.7
(54.8)
(16.2)
Depreciation and amortisation
37.0
36.9
(0.1)
(0.3)
Total expenses
429.5
374.6
(54.9)
(14.7)
1. Excludes regulatory expenses.
> Employee expenses were $240.5 million, up 21.1%. This reflects an increase in headcount to support the investment in technology and risk initiatives
and the impact of annual remuneration, variable reward and superannuation guarantee increases and restructuring costs. The headcount, including
permanent employees and contractors, increased to 1,193 from 1,050 as at 30 June 2023, of which 303 were for capital projects and 890 for
operational activities.
> Occupancy expenses were $10.9 million, up 10.1% due to contractual rate increases and additional workspace leased during FY24.
> Equipment expenses were $57.6 million, up 9.5% due to contractual rate increases, additional licensing costs from an increase in headcount and an
uplift in cloud hosted services and licensing as part of the technology modernisation program.
> Administration expenses were $47.3 million, up 8.2% due to higher spend relating to continued investment in technology, risk management,
compliance and assurance activities and increased market access fees.
> Variable expenses were $13.0 million, up 6.6% in line with higher postage costs partly offset by a decrease in CHESS holding paper statements with
the increased uptake of electronic statements.
> Regulatory expenses were $8.4 million, down 36.8%. The costs incurred largely relate to legal costs and costs associated with the audit of the
special reports.
> Depreciation and amortisation expense was $37.0 million, up 0.3%, due to the commencement of utilisation of new assets partly offset by a number
of assets reaching end of their useful life.
Net interest income
FY24
$m
FY23
$m
Variance fav/(unfav)
$m
%
ASX Group net interest income
41.7
30.0
11.7
39.0
Net interest on collateral balances
35.0
40.8
(5.8)
(14.2)
Total net interest income
76.7
70.8
5.9
8.3
ASX Group net interest income consists of interest earned on ASX’s cash balances less financial borrowings and leases and Net interest on collateral
balances consists of interest earned on balances lodged by participants and risk management haircut less interest paid to participants.
Net interest income on ASX’s cash balances for the period was $41.7 million, up 39.0% mainly driven by increased investment returns from a higher
cash rate throughout the year, partly offset by higher financing costs from the $275 million corporate bond issued in February 2024 and costs from
bank facilities that support both ASX Limited and ASX Clear.
Net interest earned from investment of participant balances was $35.0 million, down 14.2%. Net investment earnings on this portfolio averaged 10
basis points which is consistent with pcp. The average cash collateral and commitment balances were $10.7 billion, down 10.0% and the average
participant margin balances subject to risk management haircuts were down 15.7% on pcp. The weighted average risk management haircut
decreased marginally from 33 basis points to 32 basis points, due to a change in mix from participant margin balances.
Significant items
There were no significant items impacting the statutory profit after tax in FY24. This compares to a significant item loss of $173.8 million after tax
that was recognised in FY23. This loss related to the derecognition and associated write down costs of the CHESS Replacement project (loss of
$176.3 million after tax); costs associated with the CHESS Replacement Partnership Program ($23.0 million after tax); offset by an impairment charge
reversal on the sale of Yieldbroker Pty Limited ($25.5 million).
11
Financial position
At 30 June 2024, the net assets of the Group were $3,724.7 million, up 2.3% on 30 June 2023.
Summary balance sheet as at 30 June
2024
$m
2023
$m
Variance increase/(decrease)
$m
%
Assets
Cash
1,243.1
1,008.6
234.5
23.3
Financial assets 1
12,159.4
11,957.5
201.9
1.7
Intangibles (excluding software)
2,325.5
2,325.5
—
—
Capitalised software and property, plant and equipment
294.3
186.0
108.3
58.2
Investments
51.7
106.4
(54.7)
(51.4)
Right-of-use assets
48.0
47.9
0.1
0.2
Other assets
764.5
710.8
53.7
7.6
Total assets
16,886.5
16,342.7
543.8
3.3
Liabilities
Amounts owing to participants 2
11,974.6
11,784.7
189.9
1.6
Lease liabilities
57.9
58.6
(0.7)
(1.2)
Borrowings
276.4
20.0
256.4
large
Other liabilities
852.9
838.8
14.1
1.7
Total liabilities
13,161.8
12,702.1
459.7
3.6
Equity
Capital
3,046.6
3,027.2
19.4
0.6
Retained earnings
619.1
557.8
61.3
11.0
Reserves
59.0
55.6
3.4
6.1
Total equity
3,724.7
3,640.6
84.1
2.3
1. Financial assets at amortised cost.
2. An assessment was completed in FY24 which concluded that debt securities lodged by participants as non-cash collateral should not be recognised on balance sheet. Refer to the Financial Report
for further information. The prior period balance was restated to ensure consistency with current period presentation and classification.
ASX Annual Report 2024 | Operating and financial review
ASX
Operating and financial review
12
Cash and financial assets
Cash and financial assets were $13.4 billion, up 3.4% compared to
30 June 2023.
Cash and financial assets mainly comprises ASX’s own cash and
investments in financial assets backing amounts owing to participants.
The increase is driven by the higher collateral balances lodged by
participants and the net proceeds from the corporate bond issued
invested into liquid assets.
Intangibles
Intangibles are mainly associated with the goodwill that arose on the
acquisition of Sydney Futures Exchange. There was no change in the
carrying value of goodwill from FY23.
Capitalised software and PPE
Capitalised software and PPE was $294.3 million, up 58.2%
compared to 30 June 2023.
The increase was due to $136.3 million of capital expenditure
($34.0 million relating to the CHESS Replacement project and
$102.3 million on other initiatives), offset by the depreciation and
amortisation of existing software assets and property, plant and
equipment of $28.0 million.
Investments
Investments were $51.7 million, down 51.4% compared to 30 June 2023
mainly due to the divestment of the shareholding in Yieldbroker.
Investments are detailed below.
> Sympli Australia Pty Limited is an unlisted entity established to
provide electronic property conveyancing and settlement services.
ASX has a 49.4% shareholding in Sympli. The investment decreased
$1.3 million with the additional investment of $9.5 million being offset
by ASX’s share of net loss after tax of $10.8 million.
> Digital Asset Holdings LLC (DA) is an unlisted US-domiciled
technology entity. ASX has a 5.5% shareholding in DA which is held
at fair value. The value remained unchanged on pcp and ASX is in
the process of disposing of this investment subject to satisfactory
commercial terms being achieved.
> Grow Technology Services Ltd, trading as Grow Inc (Grow) is an
entity that provides technology-enabled administration services to
superannuation and managed funds. ASX has an 8.6% shareholding
in Grow and the investment increased by $1.2 million representing
additional capital invested in Grow in the period.
Other assets
Other assets were $764.5 million, up 7.6% compared to 30 June 2023.
The increase largely relates to an increase in margin receivable as a
result of movements in underlying positions of clearing participants
on the last trading day of the reporting period and corresponds to
an increase in other liabilities. This was partly offset by a decrease in
interest receivable.
Amounts owing to participants
Amounts owing to participants was $12.0 billion, up 1.6% compared to
30 June 2023, due to an increase in excess collateral balances lodged
by participants. The movement in participant balances results in a
corresponding movement in cash and financial assets, as the balances
are invested by ASX.
Right-of-use assets and lease liabilities
As at 30 June 2024, $48.0 million of right-of-use assets and
$57.9 million of lease liabilities were recognised on the balance sheet,
representing ASX’s right to use the underlying leased assets and
obligations to make lease payments, in accordance with the accounting
standards. The increase in the right of use assets is due to additional
workspace leased, partly offset against depreciation recognised in the
period. The decrease in lease liabilities is due to the payments made in
the period offset by additional lease commitments entered into during
the year.
Borrowings
Borrowings were $276.4 million. This related to the issuance of the three
year $275.0 million floating rate notes in February 2024 and interest
accruing on the notes at balance date.
Other liabilities
Other liabilities, were $852.9 million, up 1.7% compared to 30 June 2023.
This largely relates to the increase in margin payable as a result of
movement in underlying positions of clearing participants on the last
trading day of the reporting period. This corresponds to the increase
in other assets. This is partly offset by a decrease in rebates payable
and accrued expenses largely in relation to the CHESS Replacement
Partnership Program.
Total equity
Total equity was $3,724.7 million, up 2.3% compared to 30 June 2023.
This mainly reflects current year earnings less dividends paid during
the year. During the year, ASX issued $19.4 million of ordinary shares to
shareholders who elected to participate in the Dividend Reinvestment
Plan (DRP).
13
Initial capital quoted
Secondary capital
Scrip-for-scrip
Total new capital quoted
($billion)
FY21
FY20
FY22
FY23
51.7
81.7
255.3
102.5
97.2
FY24
FY15
FY16
FY17
FY18
FY19
F20
FY21
FY22
FY23
FY24
FY21
FY20
FY22
FY23
23.0
18.4
18.6
22.9
20.0
FY24
Initial listing fee revenue contribution per year
($million)
Colours represent the year in which revenue was generated and the periods
over which it is amortised
FY17
FY18
FY19
FY20
FY21
F22
FY23
FY24
Secondary listing fee revenue contribution per year
($million)
FY21
FY20
FY22
FY23
78.3
56.1
64.1
73.1
72.8
FY24
Colours represent the year in which revenue was generated and the periods
over which it is amortised
Listings
Business model and operating environment
The Listings business is responsible for originating new
corporate listings, debt and investment products and
providing post-listing support.
The Listings business earns revenue from listed entities upon their
initial listing, remaining on ASX (annual listing), raising additional
capital once listed (secondary capital raisings) as well as from
investment products and other listings. The main drivers of
revenue in this category include the:
> number of listed entities and their market capitalisation
> number of new listings including initial public offerings (IPOs),
dual listings and demergers and amount of new capital quoted
> volume and size of corporate actions, such as secondary
capital raisings.
Results of operations
Listings revenue was $208.2 million, down 4.8% on pcp, reflecting
the following:
> Annual listing revenue was $107.2 million, down 1.0%. IPOs were
down from 57 in FY23 to 56 to FY24, together with an elevated
number of delistings from 119 in FY23 to 156 in FY24 and a
2.3% decline in billable market capitalisation.
> Initial listing revenue was $20.0 million, down 13.0%. Revenue
is amortised over five years and the pattern of historical initial
listing fees received resulted in a net decrease for the period.
There were 56 new listings compared to 57 in the pcp, and
although capital quoted in the current period of $36.4 billion
was significantly higher than $2.5 billion in the prior year, foreign
exempt listings contributed $27.9 billion where fees are capped
for each listing.
> Secondary capital raisings revenue was $72.8 million, down 7.0%.
Revenue is amortised over three years and capital raised in the
current period of $45.4 billion was down 7.8% compared to
$49.2 billion in the pcp.
> Investment products and other listing revenue was $8.2 million,
down 8.9%. Lower capital markets activity resulted in lower
advisory revenue, lower debt listings and was partly offset by
higher ETF revenue from growth in Funds under management,
up 36.6% to $199 billion.
ASX Annual Report 2024 | Operating and financial review
ASX
Operating and financial review
14
Business strategies
ASX operates Australia’s leading listing venue, enabling efficient
access to capital for issuers and wealth creation opportunities for
investors. ASX has a long history of supporting issuers across a range
of sectors and sizes, from early stage to large global companies.
The growing pool of capital in Australia underpins a virtuous circle that
helps drive the ASX Listings business. The Australian superannuation
system is the world’s 5th largest1 with assets of $3.9 trillion2, and
that pool is forecast to grow to more than $11 trillion over the next
20 years3. This provides a major tailwind for ASX’s Listings business
and helps make it globally competitive.
The Listings business strategy centres on:
> Ecosystem development: developing and supporting a thriving
capital market ecosystem comprising financial intermediaries,
institutional investors (including pre-IPO investors), retail
investors and private equity and venture capital firms so that ASX
remains the listing venue of choice for Australia and New Zealand
companies and product issuers;
> Robust but streamlined regulatory settings: regularly optimising
ASX rulebooks and advocating for regulatory change to stimulate
investment in public markets, streamline regulatory processes
where appropriate and maintain the attractiveness of ASX as a
listing venue;
> Sector development: supporting and developing the growth
of existing and emerging sectors. Over recent years, ASX has
focused on expanding the number of technology and healthcare
companies listed on the exchange, including the launch of the
S&P/ASX All Technology Index which has enhanced the profile
and understanding of the technology sector in Australia;
> Attracting foreign listings: a targeted offshore business
development strategy complements ASX's strong domestic focus.
The offshore strategy prioritises New Zealand with a targeted
strategy in other jurisdictions and sectors where ASX has a
compelling value proposition;
> Product expansion: providing diversification opportunities for
Australian investors by expanding the ASX product offering. In
recent years, ASX has facilitated the launch of new innovative
investment product types including hybrid and dual access
Exchange Traded Product (ETP) structures. Over the past five
years, the market capitalisation of ASX-listed ETPs has grown
at a compounded annual growth rate of 32%; and
> Post-listing support: supporting existing listed issuers by
ensuring customers receive the most from their ASX listing,
including engagement and education programs across issuer
groups and investors.
1. Willis Towers Watson: Global Pension Assets Study 2023.
2. APRA: Quarterly superannuation performance statistics highlights, March 2024.
3. Deloitte Actuaries & Consultants: Dynamics of the Australian Superannuation System – The Next 20 Years to 2043 – March 2024.
15
Markets
Business model and operating environment
The Markets business is responsible for cash market and derivatives
trading as well as derivative clearing for exchange traded futures and
options and OTC products.
Cash market trading
The 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.
Derivatives Trading and Clearing
ASX offers exchange-traded derivatives, including the trading and
clearing of futures and options 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.
ASX Clear (Futures) operates a licensed clearing facility and provides
central counterparty services (CCP) for derivative products on the
ASX 24 market and for over-the-counter interest rate derivative
products affirmed on an approved platform. ASX Clear (Futures)
clears, settles and records payments for derivatives or other financial
transactions resulting in greater efficiency, reduced costs and
management of clearing, settlement and liquidity risks for parties to
the transactions by having appropriate risk management processes,
internal controls and compliance systems.
Results of operations
Markets revenue was $315.4 million, up 7.9%, reflecting the following.
> Futures and OTC revenue was $237.9 million, up 12.3%, with futures
volumes up 14.9% on the pcp from increased market volatility driven
by global interest rate volatility, inflation and other macroeconomic
events. There was significant growth in the traded volume of 90 day
bank bill contracts, 3 and 10 year bond products of 23.0%, 15.3% and
16.2% respectively. In addition, commodities (including electricity)
experienced growth from higher trading activity associated with
volatile electricity prices.
> Cash market trading revenue was $60.3 million, down 4.7%. Average
on-market trading value of $5.3 billion per day was down 6.0% on
pcp. This was partly offset by Auctions traded value which was up
5.7% on pcp which derives higher fees.
> Equity options revenue was $17.2 million, down 0.6%. Revenue was
lower due to the mix shift between index and single stock options.
Index options volumes were down 5.3% while single stock options
volumes, which derive a lower fee, were up 5.6% on the pcp.
Business strategies
The Markets strategy is to deliver and evolve resilient, contemporary
and sustainable trading and clearing platforms and provide transparent
and seamless services that enable customers to access capital markets
in a trusted and frictionless way.
Work continues on developing our Cash market trading platform and
renewing our Derivative Trading and Clearing platforms to enhance our
services and respond to customer needs.
The markets business is also focused on progressing a number
of product and service initiatives that will continue to improve
market quality and deliver customer driven solutions across all
asset classes – cash market trading and equity, interest rate
and commodity derivatives.
ASX futures and options on futures contract volume
(million)
FY20
169
FY21
144
136
FY22
142
FY23
164
FY24
On-market value traded
($billion)
Auctions
Open trading
Centre Point
FY22
133.4
470.2
FY22
1,079.0
138.1
428.7
FY23
848.3
134.3
453.0
FY24
FY24
743.4
FY21
106.1
363.2
FY21
994.4
FY20
120.4
409.9
FY20
995.3
ASX Annual Report 2024 | Operating and financial review
ASX
Operating and financial review
16
Technology & Data
Business model and operating environment
The Technology & Data business is responsible for technology,
connectivity and data-related businesses including Information and
Technical services.
Information Services
Information Services manages the distribution and commercialisation
of the data generated from ASX’s activities. This includes the provision
of real-time market data to support participation in the cash and
derivative markets, reference data to support customers' data
management objectives, access to ASX listed company disclosures,
and the provision of data to support market indices and benchmarks.
The main revenue driver is the number of end-users and end-user
applications accessing data.
Technical Services
Technical Services are made up of a suite of solutions which enable
our customers to access ASX and third party services either from
within ASX’s Australian Liquidity Centre (ALC) or from their preferred
data centre. Services include the hosting of customer infrastructure
within, and connectivity to the ALC, licences for ASX Net connectivity,
access to ASX services including sessions for market data products
and clearing and settlement systems, cross-connects to sources of
liquidity and order entry, as well as trade gateways. Revenue drivers
are made up from 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
Technology & Data revenue was $255.1 million, up 5.9%, reflecting
the following:
> Information services revenue was $156.3 million, up 7.9% from:
– Higher royalties from increased customer demand and
consumption of equities and futures market data; and
– Increased index royalties from Standard & Poor’s Global (S&P) as a
result of growth in end customer assets under management linked
to ASX/S&P co-branded indices and new indices which license
ASX data.
> Technical services revenue was $98.8 million, up 2.9% from higher
market connectivity revenue from enhanced service offerings and
ecosystem expansion by customers connecting to ASX services and
their service providers at the ALC with connections up to 1,399 from
1,346 and throughput access sessions up to 456 from 406.
Business strategies
The Technology & Data strategy aims to develop, deliver, and
operate a suite of data and technical products to meet the demands
of ASX's customers.
The Information Services business offers a range of market data
products including pricing data, trading data and benchmarks.
ASX's broad range of data, combined with other data sources,
provides an opportunity to deliver further value to our customers,
supporting the growth ambitions of their businesses. This has
included the launch of the first ASX data products to serve
participants in the Australian debt markets.
As part of the innovation strategy, we aim to support customer use
cases with other data services to solve business problems in areas
such as data analytics and data science. ASX will collaborate with
customers on innovation initiatives that add value as technology
and business models evolve.
The Technical Services business facilitates market access,
connectivity, hosting and co-location services in the ALC, and via
global distribution through ASX Net. The strategic focus is to enrich
and expand an ecosystem of interconnected parties by reducing
cost, complexity and risk, enabling customers to focus on their
business priorities. To achieve this, products and services will need to
cater to changing customer strategies and evolving technologies.
ALC connections
FY21
1,170
FY20
1,078
FY22
1,287
FY23
1,346
FY24
1,399
Information Services revenue contribution
($million)
FY21
118.0
FY20
106.8
FY22
130.5
FY23
144.8
FY24
156.3
Benchmarks and Index
Reference Point and ComNews
ASX market data
ASX 24 market data
17
Securities & Payments
Business model and operating environment
The Securities & Payments business is responsible for cash
market clearing and settlement, issuer services and post-trade
investor services, payments, Austraclear, ASX Collateral and
Financial Settlement Management. This business includes the
CHESS Replacement project.
ASX’s clearing and settlement infrastructure provides risk
management services through its Central Counterparty (CCP)
Clearing and delivery-versus-payment settlement of the 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 facilitates a fair and
effective clearing and settlement function for the market.
The business provides a range of services to issuers of capital,
including the generation of issuer holding statements and other
shareholder and sub-register services.
Cash market clearing
ASX provides central counterparty clearing services for the Australian
cash equity market, it does this through the operation of its licensed
subsidiary ASX Clear. ASX Clear ensures that trades are processed
efficiently and securely by netting market participant obligations,
improving the efficiency of the market and reducing individual
counterparty risk. Clearing participants and ASX contribute collateral
to the clearing guarantee fund, providing a safeguard against potential
defaults by participants. In the event of a default, these resources are
utilised to maintain market stability. The main revenue driver is the
value of 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.
Austraclear
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, and provides certainty
of settlement. The number of issuances and transactions are the main
revenue driver.
The high value payment service ensures secure payments for critical
services such as ASX's clearing house margin and the National
Electricity Market.
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.
The ASX Collateral service allows customers of ASX to use securities
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 investment in Sympli is equity accounted for within the
Austraclear business line.
Results of operations
Securities & Payments operating revenue was $255.6 million,
down 1.1%, reflecting the following:
> Issuer services revenue was $58.1 million, down 4.9% from lower
subscription fees as average number of unique security holdings
were down 2.6% on pcp. CHESS holding statements issued were
down 0.7% on pcp due to the improved uptake of electronic
statements and lower capital markets activity.
> Cash market clearing revenue was $64.5 million, down 5.8%.
The average daily on-market value cleared was $5.6 billion, down
5.7%, which was consistent with lower volumes in cash market
trading. A revenue share rebate was not applicable for FY24 due
to the lower volumes compared to pcp.
> Cash market settlement revenue was $64.9 million, down 2.1%.
The number of messages was down on the pcp, including
Transfer and Conversion messaging and dominant settlement
messages, down 2.5% and 1.5% respectively. As a result of the lower
year-on-year activity, a revenue share rebate to customers was not
applicable, consistent with the pcp where no profit share was payable.
> Austraclear revenue was $68.1 million, up 9.0%. This was driven by
higher bond issuances within the registry business and increased
transactional activity. Losses associated with ASX’s investment in
Sympli were also lower on pcp.
ASX Annual Report 2024 | Operating and financial review
ASX
Operating and financial review
18
Business strategies
Across CHESS and Austraclear, Securities & Payments seeks to innovate and improve the efficiency of clearing and settlement and allow customers
to offer new products and services to benefit issuers and investors.
In FY25, ASX will focus on maintaining and supporting the current CHESS system while advancing the CHESS Replacement project. ASX will
continue to engage stakeholders on the CHESS Replacement project and T+1, consulting with the Cash Equities Clearing and Settlement Advisory
Group on strategic matters where appropriate.
Austraclear's strategic priority in FY25 is to maintain trust with customers and regulators by focusing on providing a contemporary settlement
platform, including implementation of SWIFT ISO20022 messaging capability for payments while ensuring the facility meets or exceeds expectations
for uptime, reliability, safety, and security.
Cash on-market value cleared
($billion)
FY21
1,551
FY20
1,609
FY22
1,768
FY23
1,495
FY24
1,410
Number of dominant settlement messages in CHESS
(million)
FY21
22.7
FY20
22.5
FY22
22.0
FY23
20.8
FY24
20.4
Austraclear Issuances face value - period end
($billon)
FY21
2,449
FY20
2,151
FY22
2,688
FY23
2,832
FY24
2,857
Average number of unique security holdings
(million)
FY21
17.7
FY20
14.5
FY22
20.0
FY23
20.7
FY24
20.2
19
Key Business Risks
The table below describes ASX’s key risks and how they are managed. For more information on ASX’s approach to risk management please, see
pages 36 to 38 of this report.
Risk
The risk and its impact
How they are managed
Regulation,
market structure
and competition
ASX operates in highly regulated markets.
Changes in regulations and/or market structure can
impact ASX or its customers and the environment
in which we operate.
Examples of how ASX’s business could be impacted
include if:
> ASX fails to meet regulatory requirements leading
to investigations and potential regulatory actions
and/or fines
> regulatory requirements were changed for certain
important services
> ASX’s products or services do not meet industry
expectations in terms of resilience, quality or
value and therefore new competitors commence
operation in Australia.
> We operate our business specifically targeting compliance
with all our regulatory obligations.
> We regularly engage with government, regulators and industry
participants on market structure issues to promote the best
outcomes for the market as a whole.
> We focus on high quality and timely interaction with
our regulators.
> We engage with our customers to seek feedback on the
quality and value of our products and services and their needs,
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.
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 (both
increases and decreases in interest rates), geopolitical
environment and general financial market conditions in
Australia and overseas.
Slowing economic conditions or very low market
volatility can lead to a reduction in activity and revenues.
Examples of how ASX’s business could be impacted
by a slowdown in the Australian economy include:
> fewer new listings
> fewer 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 low market volatility include:
> decline in the volume and value of equities traded
> lower trading volumes in derivatives.
> 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 diversifying (sector and geography) and
enhancing our reputation as a listing venue with emphasis on
ETPs, resources, renewables, technology and healthcare.
> 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 adapt to
changing market conditions.
Operational
resilience
The resilience, continuity and quality of our operational
processes are critical to our ability to operate.
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 ASX’s project
execution is poor, which could lead to a failure of our
strategic projects to deliver expected outcomes.
> Great Fundamentals is a key pillar of our strategy and
includes many aspects of operational resilience.
> We have people, processes, systems and controls in place
designed to meet our operational benchmarks.
> 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 and governance in
place to reduce the likelihood of poor project execution leading
to delays or delivery failures in strategic projects, and are
upgrading these via our Delivery Excellence program of work.
> We have business continuity and disaster recovery plans that
are regularly reviewed, updated and tested.
> We have a mature incident management framework for
rectifying incidents as they occur.
> We protect the confidential information we retain.
> We undertake resource planning and have staff training
and retention programs.
ASX Annual Report 2024 | Operating and financial review
ASX
Operating and financial review
20
Risk
The risk and its impact
How they are managed
Technology
availability
ASX operates critically important financial market
infrastructure that is expected to be open and available
at all relevant business times.
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, or cyber attack.
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 or fines.
> We regularly monitor the availability of our systems against
targets and test to understand maximum throughput capacity.
> We monitor the health of critical systems and have recovery
arrangements and contingency plans in place for disruptions,
as well as built-in redundancy.
> We review the risk in our systems landscape regularly
and continue to invest in progressively modernising our
applications and infrastructure.
> We constantly engage with the 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 and leverage better practices and
relevant frameworks and standards.
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 counterparty, 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.
> 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 regularly review our margin and stress test models to
make sure they are fit for purpose and modify them if needed.
> We have risk policies, systems and procedures to constantly
monitor and manage counterparty exposures.
> We have default management strategies that are regularly
subject to simulation exercises.
> We have recovery plans for extreme default scenarios.
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, ASX’s own
capital, and the clearing and settlement facilities’ pre-
funded default capital resources 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. The value of these
investments may decline due to the underlying
businesses not meeting their objectives. Losses
might also arise if ASX needed to impair some
aspects of its capital expenditure through projects
not meeting their objectives.
> We have investment limits in place under which ASX is
required to invest its collateral balances and own 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 and initiatives that we have invested in, and follow
the prescribed accounting treatment in terms of impairment
or loss recognition should that be necessary.
Reputation
and stakeholder
confidence
The ongoing success of ASX is dependent on
its reputation for trust, integrity and resilience in
everything we do.
Reputational 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.
> Our purpose is to power a stronger economic future by
enabling a fair and dynamic marketplace for all.
> Understanding the importance of our reputation and
protecting it are both central to everything we do.
> We consider possible reputational risks in all our business
activities and decisions.
> Our company values focus on putting the market first,
standing up for what’s right, achieving more together and
driving positive change.
> We have regular and open engagement with customers
and wider stakeholders to seek feedback on their needs
and our performance.
> We have ongoing 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.
21
A new era sustainability
framework at ASX
ASX
Sustainable pillars
ASX’s sustainability approach is
delivered through two key pillars:
> Sustainable ASX
> Sustainable marketplace
Our pillars are underpinned by a
foundation of effective stakeholder
relationships to enable high levels of
confidence and transparency in the market.
Sustainable Development Goals
ASX’s sustainability framework is aligned
to the United Nation’s Sustainable
Development Goals (SDGs) to directly link
our impacts to the greater global efforts
to end inequality, protect the planet, and
add to prosperity for all. The actions we’re
taking within our two sustainability pillars
support seven of the SDGs.
Sustainability
ASX’s Board and management are committed to the sustainability of ASX, as a critical
enabler of achieving its vision to be the market’s choice, inspiring confidence and trust.
In 2024, ASX updated its sustainability framework to reflect the changing sustainability landscape,
and ASX’s strategy and operating context. The enhanced framework incorporates the perspectives
of a wide range of ASX’s stakeholders through a materiality analysis.
This report provides an overview of ASX’s new sustainability framework, and the performance of
key sustainability activities delivered in FY24 under the prior framework.
Disclaimer
Due to the inherent uncertainty and limitations in measuring greenhouse gas (GHG) emissions
and operational energy consumption, all GHG emissions and operational energy consumption
data in this report are estimates. There may also be differences in the manner that third parties
calculate or report GHG emissions or operational energy consumption data compared to ASX,
which means third-party data may not be comparable to ASX’s data. For information on how we
calculate our GHG emissions and operational energy consumption data, refer to our TCFD report.
22
ASX Annual Report 2024 | Sustainability report
22
Materiality
assessment
ASX assessed the most important sustainability
issues on the basis of ASX’s impact on
stakeholders and society, and the impact of
various topics and issues on ASX as a business.
During 2024, an assessment of material topics was
undertaken which has been used to anchor the focus areas in
ASX’s sustainability framework.
Several inputs into the assessment have been considered
including an aggregation of the material topics of
approximately 15 securities exchanges from around the world
and a review of ASX-related commentary from stakeholders
such as government and regulators over the past 12 months.
Over 100 themes were identified by ASX and aggregated
into 10 topics, with each ranked based on their importance to
ASX as a business and importance to key stakeholder groups.
The 10 material topics, agreed by the ASX Board, informed
the development of ASX’s sustainability framework and will
form the basis of ASX’s sustainability reporting in FY25.
1
Risk management
Strong risk management foundations
supported by robust frameworks.
Sustainable, secure and resilient technology
Technology underpins everything at ASX and is
crucial to support the licences we hold and our role
as a key operator of market infrastructure.
Fair and transparent markets
Enabling a fair and dynamic marketplace for all.
Governance and ethics
Good governance underpins strong business
performance and is essential to retaining the trust
and goodwill of ASX’s stakeholders, including
shareholders, employees, regulators, customers,
market participants, and the broader market.
Engaging, developing and caring for our people
Our talented people are crucial to everything ASX does.
Our strategy aims for a vibrant and inclusive culture
inspiring growth.
Sustainability regulation and compliance
Managing sustainability risks and impacts and
ensuring regulatory compliance.
Digital by design
Customer and people experiences are made easier
through digital technology.
Supporting the Australian economy’s energy transition
Providing customers with products and insights to
support the net zero transition.
ASX emissions
Reduce carbon emissions generated as a result of
ASX’s business activities and use renewable energy to
make usage more sustainable.
Educating the market about sustainability practices
Promote the availability of knowledge and information
to ensure that our markets are sufficiently equipped
to make sustainability disclosures.
2
3
4
5
6
7
8
9
10
Our future
approach and
reporting will
be based on 10
material topics
23
23
1. Based on UN Sustainable Development Goals.
Our Practices
Our Systems
We support the market’s sustainability efforts and embed our own sustainability practices through:
We support the stability of Australia’s financial system through:
Sustainable, secure and
resilient technology
Minimising our carbon impact
Supporting sustainability efforts
Fair, transparent and
effective markets
Our Foundation
Effective stakeholder relationships
High levels of confidence and transparency among
stakeholders who constitute the market
Sustainable ASX
Sustainable marketplace
Our sustainability ambition is
to support the stability and
sustainability of Australia’s
financial system.
Our impact 1
The two pillars of our new sustainability framework – Sustainable ASX and Sustainable
marketplace – are focused on addressing our 10 material topics.
Material sustainability topics: 1, 2, 7
Material sustainability topics: 6, 8, 9
Embedding resilient and
responsible business practices
Material sustainability topics: 1, 4, 5, 6
Fostering a healthy and
inclusive workplace
Material sustainability topics: 4, 5, 7
Material sustainability topics: 2, 3
Material sustainability topics: 8, 10
Building sustainability knowledge
and capacity in market
Material sustainability topics: 8, 10
Designing products that navigate
sustainability complexity
Material sustainability topic: 8
ASX Annual Report 2024 | Sustainability report
24
Sustainable
ASX
Sustainable
marketplace
Sustainable, secure and resilient technology
> Fair and effective trading, clearing and settlement facilities
> Resilient data and cyber security defences
> Effective and reliable technology
Fair, transparent and effective markets
> Operational and process excellence
> Fair access, transparency and equal opportunity
> Rigorous market oversight mechanisms
Embedding resilient and responsible business practices
> Build and maintain robust risk management and governance
processes and policies that integrate sustainability factors
Fostering a healthy and inclusive workplace
> Foster a culture of equity, inclusivity and respect as an
imperative for long term sustainability
Minimising our carbon impact
> Targeting net zero Scope 1 and Scope 2 emissions by FY25
Building sustainability knowledge and capacity in market
> Be a trusted resource for timely and relevant information on
emerging ESG standards
Designing products that navigate sustainability complexity
> Support our customers as they manage their own sustainability
risks, opportunities and programs
Supporting sustainability efforts
> Support the listing and trading of sustainable assets
to support the transition to net zero
25
FY24 sustainability
Highlights
1. Relates to all electricity where ASX has the has the right to select
the electricity product or retailer for the office under the terms of
the lease agreement for these offices.
2. Workplace Gender Equality Agency reporting period 1 April 2023
to 31 March 2024.
3. Since inception in 1977.
People
Resilient systems and practices
63%
employee engagement score
(same as previous year)
40%
of primary paid parental leave
taken by male employees 2
3%
improvement in annual
all‑employee risk and
compliance culture survey
$364M
tax contribution across corporate
income tax, GST, employee-related
PAYG and payroll tax, fringe benefits tax
and withholding tax
89%
of our employees say they feel their manager
genuinely cares about their wellbeing
100%
average system availability
98%
of e-waste recycled
Environment
99.4%
reduction in Scope 1 and Scope 2
emissions compared to FY21 baseline
100%
renewable electricity sourced where
ASX has operational control 1
Dynamic markets and product innovation
4M
school students have participated in
ASX Sharemarket Game 3
2,500+
people attended educational
ASX Investor Days
25
organisations in working group supporting
development of new Wallumbilla gas futures
Our FY24 outcomes reflect our previous sustainability focus areas that support fair and dynamic markets, a positive experience for
our people, and how we support Australia’s financial system and the environment.
From FY25, ASX will report its sustainability outcomes in line with the new sustainability framework outlined on the previous pages.
ASX Annual Report 2024 | Sustainability report
26
Environment
Climate Change Statement
Our approach to climate change brings together our
commitment to being a responsible corporate citizen,
our role supporting Australia’s transition to a low carbon
economy, and our role as market operator to encourage
transparency from issuers.
Addressing climate change
It is important that our response to climate change
is aligned with our values as an organisation. While
we do not believe ASX has material risk to climate
change, we do have a responsibility to adhere to
best practice and be an example for issuers.
As the premier securities and derivatives market
operator in Australia, we seek to lead by example
by embracing sustainability in our business and
operations. We recognise we have a part to play
in reducing carbon emissions, and have set a
target of achieving net zero for our Scope 1 and
Scope 2 emissions in FY25.
Our approach to climate change focuses on
what ASX can do to:
> minimise the impact of our operations on
the environment and carbon footprint;
> encourage consistent, comparable, and
reliable climate change-related reporting and
disclosures; and
> support Australia’s transition to a low carbon
economy by offering products and services that
enhance decision-making, manage risk and
meet the growing demand for environmental,
social and governance (ESG) investments.
Taskforce on Climate-related
Financial Disclosures (TCFD)
ASX has been a supporter of the TCFD since
2019 and while we note that new draft legislation
for climate-related financial reporting is
currently before parliament, we recommend
issuers use the TCFD framework for disclosure
of climate-related risks and opportunities.
This is the fourth year that ASX itself has
reported on its approach to climate change
adopting the TCFD recommendations
and guidance.
Our 2024 TCFD report is available on ASX’s
website at: https://www.asx.com.au/about/asx-
shareholders/reports.
The 2024 TCFD report updates progress
against the scenario analysis captured in 2021.
These scenarios assessed ASX’s inherent
climate risks and opportunities that may arise
under 1.5C and 4C scenarios over the two time
horizons of 2030 and 2050.
Membership of UN Sustainable Stock Exchanges Initiative
As part of ASX’s ongoing commitment as a Partner Exchange under the UN Sustainable
Stock Exchanges (SSE) initiative, ASX confirmed its participation in the UN SSE Net
Zero Comment Group aimed at helping the creation of net zero targets for exchanges.
This provides ASX with the opportunity to help shape the commitments that exchanges
across the globe might make in the future.
99.4%
reduction in Scope 1 and Scope 2
emissions in FY24 compared
to FY21 baseline
e-waste strategy
ASX’s e-waste standard outlines a process for the management of our
e-waste. It defines how we manage waste from electronic products that are
purchased or utilised by ASX and its employees to facilitate their work as part
of ASX operations. Personal electronics purchased by ASX’s employees are
not identified as being part of this standard.
Reducing e-waste
We are committed to recycling, reusing resources, and reducing e-waste
associated with the operations of our business. During FY24, we have built
processes that focus on reducing electronic waste, recycling unwanted
equipment, reusing equipment and sustainably procuring products.
At ASX, e-waste is classified in the following categories:
> End user devices – such as laptops, tablets, mobile phones
> Computer parts and peripherals – such as mice, keyboards, headsets,
remote controls, speakers, hard drives, web cameras, and chargers
> Media products – such as digital linear tapes (DLT) and hard disk
drives (HDD)
> Desktop monitors
> Office printers and multifunction devices (MFDs) – such as photo copiers,
fax machines, toners, cartridges, and paper shredders
> Batteries – such as batteries from uninterruptable power supply (UPS),
hand held devices, laptops
> Digital displays
> Network server, storage infrastructure and data centre equipment
> AV and lighting equipment – such as microphones, projectors, amplifiers,
fluorescent lamps, high intensity LEDs
Sustainable ASX
98%
of e-waste
recycled
27
Environment
Our path to net zero for Scope 1 and Scope 2 emissions
FY22
FY21
FY23
FY24
FY25
(100%)
(80%)
(60%)
(40%)
(20%)
0
Business As Usual
with no renewable energy or
emissions reductions strategies
Net zero Target
Shows our near-term target and the gap
that we need to fill in FY25 with high-quality
Australian Carbon Credit Units (ACCUs)
Emission Removal
Includes maintaining 100% renewable
electricity and other emission reduction
strategies already implemented
Key environmental outcomes in FY24
Energy and emissions
> 100% renewable electricity was sourced where ASX has the right to select the electricity
product or retailer for the office under the terms of the lease agreement for these
offices. Over 99% of the electricity ASX purchased in 2024 to operate its buildings is
via the Australian Government’s accredited renewable electricity product GreenPower
purchased through our electricity retailer.
> ASX reduced total Scope 1 and Scope 2 emissions by 99% between FY22 and FY24.
Our reductions are a result of improving energy efficiency across our operations, and
sourcing renewable energy.
– In FY24, Scope 1 emissions were down 33% (16 t CO2-e) compared to the previous year.
This is mainly due to a reduction in diesel consumption (5,000 litres) as a result of less
generator run time, due to less power interruptions and major maintenance activities.
– Scope 2 emissions were down 15% (10 t CO2-e) in FY24 compared to the previous year.
This is mainly due to the majority of our offices now purchasing 100% GreenPower.
– Scope 3 emissions increased 17% (416 t CO2-e) compared to the previous year.
This is mainly due to:
• No carbon credits purchased in 2024 (250 credits in 2023 applied to business travel)
• Increased international business travel, flights up 9% compared to same period last year.
Our path to 100% net zero Scope 1
and Scope 2 emissions
ASX remains committed to supporting
corporate Australia in achieving its
sustainability goals and looks to lead by
example. We have achieved our target of
sourcing 100% renewable electricity this
financial year, where ASX has the right to
select the electricity product or retailer
for the office.
ASX remains committed to achieving net
zero Scope 1 and Scope 2 emissions in
FY25. ASX expects to eliminate unavoidable
residual emissions (<1%) with the purchase
and surrender of Australian Carbon Credit
Units (ACCUs).
Sustainable ASX
ASX Annual Report 2024 | Sustainability report
28
Emissions data
ASX emissions data provided below relates to the financial year ended 30 June 2024, is reported on a financial control basis and is presented to the
nearest significant figure.
FY24 Environmental outcomes
Greenhouse gas (GHG) emissions
Unit
FY24
FY23
% change from
prior year
Scope 1 – diesel and gas
tCO2-e
34
50
(32.9%)
Scope 2 – electricity 1
tCO2-e
53
63
(14.8%)
GHG emissions by activity
Scope 1
> Combustion of diesel and gas
tCO2-e
34
50
(32.9%)
Scope 2
> Electricity (data centre customers) 1
tCO2-e
—
—
—
> Electricity (ASX direct usage) 1
tCO2-e
53
63
(14.8%)
Scope 3
> Travel (business travel and commuting) 2
tCO2-e
1,319
849
55.4%
> Electricity usage (third party data centres) 3
tCO2-e
1,511
1,561
(3.2%)
> Electricity usage (data centre customers and ASX direct usage) 1
tCO2-e
7
10
(35.5%)
> Paper usage (office) 4
tCO2-e
—
—
—
> Paper usage (CHESS statements and notifications)
tCO2-e
—
—
—
Paper usage
Office use
tonnes
2.8
2.1
33.9%
CHESS statements and notifications
tonnes
61
96
(36.2%)
Electricity and paper usage
Electricity GHG emission (excluding ASX's data centre hosting) per $100,000
of revenue generated
tCO2-e
0.0104
0.0138
(24.5%)
Paper usage (excluding CHESS statements and notifications) by headcount
tonnes
0.0026
0.0022
16.3%
1. Over 99% of the energy ASX purchased in FY24 to operate its buildings is via the Australian Government’s accredited renewable electricity product GreenPower purchased through our electricity
retailer. The GreenPower program guarantees ASX’s electricity use is matched with power from renewable electricity sources (such as solar, wind and biomass). ASX’s residual electricity
consumption is from satellite offices where GreenPower from satellite offices where ASX does not have the right to select the electricity product or retailer for the office under the terms of the
lease agreement for these offices.
2. The increase in travel emissions in FY24 is mainly attributed to an increase in air travel emission conversion factors published by the UK Government Department for Energy Security & Net Zero
in 2023.
3. Emissions from Secondary Data Centre (SDC) and all other third party data centre sites where ASX does not have operational control over electricity usage have been classified as Scope 3.
4. All paper used in ASX offices is carbon neutral and there are no Scope 3 emissions.
29
Connection with our strategy
In June 2023, ASX announced its five year
strategy to move our organisation into a new
era with a clear vision to be the market’s
choice, inspiring confidence and trust. The
launch of the five year strategy provided an
opportunity to re-engage our people on why
ASX exists (our purpose), what we need to do
to deliver on our purpose (our strategy), and
how employees can contribute (our values).
Why: our purpose
Our purpose – to power a stronger economic
future by enabling a fair and dynamic
marketplace for all – drives the collective
focus of our people and reflects the important
and privileged role we play providing critical
financial market infrastructure, products
and services.
Our employees have a strong connection to
ASX’s purpose, with 81% saying they are proud
to work for ASX, which was an increase on
2023. 1 Through our regular communication
and culture building, reinforcing the
connection and pride in ASX’s purpose and
role in the Australian economy has become
increasingly important as we deepen
our efforts on attracting, developing and
retaining the great talent.
What: our strategy
Ensuring every employee has clarity on our
five year strategy and how we all contribute
is imperative to our success. During FY24,
we enhanced our performance management
framework to focus on clear, accountable
outcomes and improved assessment and
measurement practices. This supports our
employees to have clear accountabilities and
expectations in how to deliver outcomes.
During FY24, we implemented a new
business planning approach with quarterly
enterprise-wide business reviews, and
increased the cadence of employee briefings
to provide updates on strategic progress to
celebrate achievements.
How: our refreshed values
ASX has continued to embed and promote its
organisational values during FY24. Our four
values are a key enabler of our strategy and
will help us to fulfil our purpose.
During FY24, ASX added to its employee
recognition programs with the launch of our
One ASX Awards, which recognise teams and
individuals living our values and helping drive
our vibrant culture each quarter. They also
help to showcase the work happening across
the business to deliver meaningful outcomes
for ASX.
1. ASX ‘Your Say’ Employee Survey 2024.
LEAVE CALL OUT BOX SOMEWHERE NEAR THIS SECTION FOR A PROFILE OF AN
ASX EMPLOYEE WHO WON A QUARTERLY AWARD. WILL NEED ROOM FOR A
PHOTO AND AROUND 50 WORDS.
One ASX winners – Corporate Bond team
The One ASX awards program recognises and celebrates individuals and teams who
live the ASX values and help deliver meaningful outcomes for ASX and our customers.
The ASX Corporate Bond team was one of our winning teams. This cross-functional
team came together with a common goal to deliver on something that had never been
done before at ASX.
The team successfully issued an ASX bond with a wide range of investors spread
across Australia, New Zealand and Asia. Within this process, an ASX Medium Term
Notes Program was established, providing an innovative and sustainable operational
framework to issue additional bonds in the future.
The $275 million bond issuance is significant for ASX as it helps provide the capital to
execute ASX’s new era strategy and deliver our strategic outcomes and vision.
People
We put the
market first
reflects our commitment to be a proactive
partner, listening carefully and ensuring
that we understand what matters to a
broad range of market participants.
We stand up
for what’s right
is about acting decisively, and having
the courage to speak honestly. It’s
about protecting market integrity, and
supporting financial system stability.
Sustainable ASX
30
30
ASX Annual Report 2024 | Sustainability report
employee
engagement score
63%
86%
employee participation in
annual engagement survey
believe ASX leaders
model inclusive behaviour
83%
The diversity, equity and
inclusion strategy is focused
on three main pillars:
Diversity, equity and inclusion
During FY24, ASX reviewed its diversity,
equity and inclusion (DEI) strategy to align
to the five year ASX group strategy.
Employee engagement
ASX conducts an annual organisation-wide engagement survey which collects
employee feedback to measure a broad range of factors around employee
experience and culture. The results are reviewed by the ASX Board and Executive
Team and are an important input to the development of our people strategy.
In our FY24 annual survey, we saw engagement remain steady at 63%, despite a
year-on-year drop in global benchmarks of 2%. We are focused on improving our
employee engagement score. This includes taking steps to improve our overall
employee experience in terms of how our people do their work, including investing
in the processes and tools employees can use.
Our employees tell us that they understand how their work contributes to ASX’s
vision and strategy (90%), that ASX leaders model inclusive behaviours (83%) and
genuinely care about employee wellbeing (89%).
The survey, which had record participation of 86% of all employees in FY24,
also provides insight on areas to improve, which is reflected in our refreshed
people strategy.
Remuneration
ASX employees receive market competitive remuneration. Subject to group and
individual performance, employees also participate in a short term variable reward
(STVR) program which offers a mix of cash and share rights. Employees are also
offered a range of benefits such as share grants, salary continuance insurance,
subsidised sport and social programs and a suite of discount and corporate rewards.
We achieve
more together
reflects our desire to harness the power
of the ecosystem to ensure robust
outcomes come from a diverse range
of views. It’s about empowering and
supporting others around our shared
purpose and common goals.
We drive
positive change
looking to the future and learning from
the past to continuously improve and set
new standards.
Create a culture of
inclusion and belonging
Attract and retain a
diverse workforce
Reward, develop and
promote equitably
31
Sustainable ASX
Gender equality
ASX remains committed to promoting gender equality within the organisation. In FY24, ASX committed to a 40:40:20 gender balance target by
FY28, replacing its existing target of female representation of 45% of the total headcount by FY25.
This approach, which is recommended by Australia’s leading gender equality agencies, applies a target of 40% female and 40% male representation
across the organisation at a minimum. The remaining 20% provides flexibility for female, male and people who identify as non-binary or
gender diverse.
Prior gender diversity targets and results
People
Level
% of female representation
Target 1
(by FY25)
FY21
FY22
FY23
FY24
On the Board
40%
33%
36%
50%
50%
Executive Team roles 2
45%
36%
50%
30%
27%
General Management roles
45%
38%
36%
40%
40%
Management/team leader roles
45%
39%
38%
36%
36%
Total % in management position roles
45%
39%
38%
37%
37%
Professional/technical roles
45%
40%
41%
41%
42%
Administrative roles
50%
84%
89%
93%
94%
Across the entire organisation
45%
42%
42%
41%
42%
Data as at 30 June for respective financial years.
1. Target set 2021.
2. Excluding CEO (including CEO results are: FY21: 29%, FY22: 40%, FY23: 36%, FY24: 33%).
New gender diversity targets
Our new gender diversity targets include a minimum of 40% female, minimum 40% male, and 20% of any gender across all levels of the
organisation, and is regularly tracked and reported annually in ASX’s sustainability report. While targets are focused on gender, ASX is also taking
an intersectional approach to drive gender equality, considering other aspects of identity including, but not limited to, cultural and racial diversity,
caring responsibilities, disability and sexual orientation.
Level
Definitions for FY28
FY24:
% of female
representation
Target FY28
Board
Inclusive of CEO
50%
40:40:20 3
Executive Team
Exclusive of CEO
27%
Senior Leadership
CEO, CEO-1, CEO-2 1
38%
Management
CEO-3, Band 5 and above 2
35%
Across ASX
All employees
42%
1. Therefore includes Executive.
2. Excluding individual contributors at band 5 CEO-3.
3. 40% females (minimum), 40% males (minimum), 20% of any gender (inclusive of men, women and people who identify as non-binary or gender diverse).
Gender pay equity
ASX supports providing employees equal pay for like roles irrespective of their personal characteristics such as gender. An annual review is conducted
to identify differences in remuneration which cannot be explained by qualifications, tenure, experience, and performance. Any unexplained differences
are addressed in the ensuing remuneration review. During FY24 there was no material gap in our gender pay equity.
Gender pay gap
The gender pay gap (GPG) is just one of many measures that indicate gender equality and inclusivity in the workplace. When we review how we
compare to our industry in the most recently available benchmarks in the 2022‑23 Workplace Gender Equality Agency (WGEA) reporting period,
the data is encouraging; on all measures ASX’s gender pay gap is significantly lower than the industry average. This reflects the concerted effort we
have made over recent years to drive gender equality at ASX. As we make progress towards our gender diversity targets this will further reduce our
gender pay gap.
WGEA gender pay gap data 1
WGEA reporting period
Most Recent Industry
Comparison (2022-23) 3
2022-23
2023-24 2
Median base salary
9.6% 4
8.1%
25.5%
Median total remuneration
10.8% 4
8.2%
26.7%
Average (mean) base salary
12.9%
8.9%
21.0%
Average (mean) total remuneration
15.2%
9.1%
31.1%
1. The average GPG is the difference between the average earnings for men and women, expressed as a percentage of men’s average earnings. The median GPG is the difference between the
median of what men are paid and the median of what women are paid, expressed as a percentage of the median men’s earnings.
2. CEO included in 2023-24 data.
3. Financial & Insurance Services Industry, 500-900 employees.
ASX Annual Report 2024 | Sustainability report
32
Flexible working
As an inclusive organisation, we support flexible working arrangements, and in FY24
83% of employees told us they feel that they have the flexibility to manage work, caring
responsibilities, and other commitments.
We aim to balance our flexible working approach with the needs of our employees,
stakeholders, customers and partners. We will continue to adapt and evolve our approach
to hybrid working to balance organisation requirements with employee wellbeing.
To support our people in the moments that matter, we offer paid parental leave for primary
and secondary carers, superannuation contributions, graduated return-to-work, assistance
with locating childcare plus support through our Employee Assistance Program (EAP).
Our paid parental leave policy applies equally to parents irrespective of gender and is
reflected in 40% of those taking primary carer paid parental leave during FY24 being male 1,
which is higher than the industry average.
We recognise there are times when our people need to focus on their personal lives, and
we provide leave in these circumstances. We provide paid leave for volunteers, employees
requiring compassionate leave, defence force and emergency services. We support victims
and survivors of family or domestic violence through support tailored to their needs and
paid leave.
WGEA employer of choice for gender equality
ASX is proud to be recognised as a Workplace Gender
Equality Agency (WGEA) employer of choice. This is
recognition of ASX’s performance in areas such as pay
equity, workplace flexibility, and preventing harassment,
discrimination and bullying.
ASX WGEA Gender Pay Gap industry comparison
0%
-10%
10%
20%
30%
50%
40%
ASX gender pay gap
Shows the average and the range of GPGs for our Industry Comparison Group compared to ASX Group GPG.
This chart is using Mean Average data.
Industry comparison GPG
Industry comparison GPG range
In favour
of women
In favour
of men
SOURCE: WGEA Industry Benchmark Report 2022-23. ASX data effective 31 March 2023. 2023-24 industry data not yet available.
of our people who took primary
paid parental leave were male 1
during WGEA reporting period
to 31st March 2024
40%
of employees say they have the
flexibility they need to manage
work, caring responsibilities and
other commitments
83%
4. Published by WGEA February 2024.
Respect@Work
In FY24, ASX launched a new Appropriate
Workplace Behaviour policy supported by
comprehensive in-person training for our
people leaders. The action forms part of our
positive duty to prevent sexual harassment
and harassment on the grounds of sex or
gender under the Respect at Work Act.
This is further supported by an update of our
Safe & Inclusive Workplaces training that is
compulsory for all employees to complete,
and part of our efforts to continue curating a
safe and inclusive workplace.
The training has been positively received
by ASX’s leaders with feedback that it
was a meaningful and practical way to
build a clear understanding of the new
Respect at Work laws.
Parental leave at ASX
Tony, a member of ASX’s Commercial Planning team
“The birth of my second child was slightly premature
and coincided with one of the busiest times of the
year for me in my role. Despite this, ASX supported
me and prioritised my need to take parental leave.
This meant I was free to spend time with my family
and support my wife through her recovery postpartum
and our new child through some minor health
complications.
“ASX supports flexible working arrangements. For me
this means I can collect my first child from childcare
and experience the joy of being greeted with her big
smile at the end of the day.
“I will always be grateful that I work for an organisation
who has my back and is there when I need them.”
1. During WGEA reporting period to 31 March 2024.
33
Sustainable ASX
1. ASX ‘Your Say’ Employee Survey 2024.
What they do
We@ASX
Wellbeing
Culture & Heritage
ASX Giving
FY24 Highlights
Dedicated to empowering and
supporting women at ASX and
fostering a gender equal culture.
WE@ASX stands for Women
Empowered and the group is
for all genders
Promoting and facilitating physical
and mental wellbeing through
employee participation and
community connection
Organises events and education
campaigns that value and
celebrate the diversity of cultural
attitudes, behaviours, thoughts,
and work practices at ASX
Building support for community
initiatives through fundraising
and volunteering opportunities,
supporting the passion and
generosity of ASX’s employees
> International Women’s Day event
with board members
> Speed mentoring
> Family & Domestic violence
education & Awareness with
Domestic Violence NSW
> Dress for Success donation drive
> R U OK? Day awareness
driving event
> Expert speakers for building
listening skills for connection
and wellbeing
> JP Morgan Cup largest team
in competition in 2023 with
237 ASX employees
> Regular yoga, pilates and
meditation throughout the year
> Diwali celebrations
> Lunar New Year celebrations
> ANZAC Day commemoration
> Education & Awareness session on
The Voice Referendum with expert
ABC correspondent Dan Bourchier
> Naidoc Week donation drive for
First Nations charity
> Increased participation in
charitable work (through paid
volunteering days) by 10%
of our employees say they
have the flexibility needed
to manage work, caring
responsibilities and other
commitments 1
83%
QASX
Employees and allies promoting
LGBTIQ+ inclusion through events,
communications, peer support
and networking
> Mardi Gras
> Wear it Purple Day
> Drag Trivia and Karaoke
> Launching pronouns on MS Teams
> Fundraising for LGBTIQ+ charities
of our employees who
identify as LGBTIQ+ say they
feel comfortable to bring
their whole self to work 1
91%
of our employees speak a
language other than English 1
32%
diverse cultural backgrounds
across our employee base. 1
24
days given to charitable work
Over 100
ASX matched employee
donations to a range
of charities
~$116,000
of employees believe
“My direct manager
genuinely cares about
my wellbeing” 1
89%
People
Bringing diverse perspectives and a culture of inclusion
ASX is committed to building a diverse, equitable and inclusive workplace where everyone can join, thrive, and progress. Diversity and a culture of
inclusion makes us a stronger business.
We support a workplace where everyone feels seen, supported and safe to be themselves, no matter their gender identity, age, ethnicity, race,
cultural background, religion, sexual orientation, disability, neurodiversity, socio-economic status, caring responsibilities, or any other forms of
individual identity.
We want to ensure that ASX reflects the diversity of our customers, partners, stakeholders and community, and that we bring diversity of thought,
approaches, and ideas to the way we work and our decision-making processes.
Empowering our employee groups
ASX recognises the power and passion of its employees and supports them through our Employee-led Networking Groups (ENGs). These groups
– developed, chaired, and run by employees, each with their own executive sponsorship – celebrate differences, raise awareness, and promote our
inclusive and respectful culture.
ASX Annual Report 2024 | Sustainability report
34
Graduate program
Phoebe joined ASX’s first Graduate
program in January 2021. With an
interest in both Finance and IT the
ASX Grad program was a perfect fit for
Phoebe. Throughout the program Phoebe spent time in the
Cyber Security, Identity and Access management, Security
Architecture and Listings teams. At the end of the program
she secured a permanent role as a Product Specialist in the
Investment Products team, within the Listings business, a role
she continues to enjoy today.
When asked what she would say to a graduate considering
applying for the ASX Grad program Phoebe said “ASX is the
perfect size for a grad program. It’s big enough for you to get to
learn so many different things, but not so big that you get lost
in the crowd.”
Her favourite part of the program was the flexibility it offered
to determine the type of experience she wanted as a grad.
Everyone was very friendly and willing to help and answer her
questions. A particular highlight was having lunch with the
ASX Board, which Phoebe said “was really cool. I don’t think
graduates at other organisations would get that opportunity”.
Accountability
We expect a high standard of behaviour from our people, consistent
with the privileged position we hold within Australia’s financial markets.
To succeed in an evolving economy, we need to harness our people’s
ability to exercise judgement in uncertain situations. We do this by
communicating:
> Our values which articulate the principles that drive our people’s
behaviours and decisions
> What is and is not acceptable behaviour through our
policies, including:
– Code of Conduct
– Whistleblower
– Anti-bribery and corruption
– Diversity, Equity and Inclusion
– Equal Employment Opportunity
– Appropriate Workplace Behaviour
> Training: All ASX employees must complete mandatory online
training on the policies on an annual basis. This includes an
assessment to ensure an understanding of the content and intention
of these policies. ASX supports the annual renewal of employees’
professional memberships and qualifications
> A robust consequence management framework outlines
consequences for breaches of behavioural expectations. ASX’s
Conduct Review Group monitors and investigates instances where
employee behaviour is not consistent with these expectations,
to ensure that consequences are consistently applied, fair
and appropriate
> Accountability statements for Executives.
Growing talent
Graduate program
We have a thriving graduate program at ASX that attracts top talent,
who bring fresh perspectives and contemporary ideas that help to drive
our business forward. The ASX Graduate program has been operating
since 2021. We are proud that 90% of our graduates have stayed with
ASX and thrived in full-time roles and that 100% of our graduates would
recommend the ASX program to future graduates. This program
demonstrates our commitment to nurturing the next generation of
leaders and helps to cultivate a culture of continuous learning and
development at ASX.
Leadership
One of the critical enablers of building a vibrant and inclusive culture
at ASX is the continued development of our leadership capability
across the organisation. During FY24, ASX ran a series of leadership
forums for its top ~80 leaders. These sessions are designed to support
skills development, increase peer connections and knowledge of
ASX’s strategy.
We are committed to building a stronger, contemporary leadership
capability across ASX as part of our five year strategy.
During FY24, we commenced work on designing a new leadership
capability framework including selecting a specialised partner to
support ASX on the design and implementation in FY25.
LinkedIn Learning
ASX is committed to growing and developing the skills and capabilities
of its employees by using contemporary and self directed learning
options, such as LinkedIn Learning. Since its launch in March
2024 more than 75% of employees have registered for a LinkedIn
Learning account.
During this time our people have completed more than 290 courses
and 60 employees have taken the opportunity to complete Continuing
Education Units and gained certifications in HR, Project Management,
Accountancy and Business Analysis.
ASX Senior Leadership Team Forum in 2024
have registered for
LinkedIn Learning
850
1,100
employees
people completed Continuing Education Units and
gained certifications in HR, Project Management,
Accountancy and Business Analysis
60
35
Sustainable ASX
Cyber security
Governance and strategy
ASX’s Board and management recognise cyber risk as one of the Group’s most critical risks to be managed and mitigated.
The Chief Information Security Officer, who manages the cyber security function, reports to the Chief Information Officer and has independent
and direct access to the Chair of the Board Technology Committee. In addition, cyber security is a standing agenda item for the Board Technology
Committee whose meetings are attended by the senior cyber security management team.
The Cyber Security team has a Board-approved security strategy which covers a rolling four year period. It is reviewed and approved annually by
the Board upon recommendation of the Technology Committee to ensure it remains commensurate with the overall risk environment. The strategy
is based on the global National Institute of Standards Technology (NIST) Cyber Security Framework to ensure completeness.
A security roadmap is developed from the strategy, which is a schedule of activities that are required to implement the strategy. Roadmap items
may change as the risk environment or priorities change; however, these changes will generally fall within the existing four year strategic window.
The table below provides an overview of some of the key roadmap activities from the FY25-28 cyber security strategy:
Activity
Description
Vulnerability management uplift
Refreshing vulnerability and patch management processes to align more closely with best
practice guidance from leading frameworks e.g. ASD Essential 8
Enhancements to asset management processes
Refreshing hardware & software asset management capabilities to consolidate and expand
cyber integration points
Australian Signals Directorate (ASD) Essential 8
Deliver ongoing alignment with our targeted maturity levels in the ASD Essential 8
Cloud compliance uplift
Alignment of cloud controls against industry standards and integrating automated compliance
monitoring
NIST
Deliver ongoing alignment with the NIST Cyber Security Framework to our target maturity levels
Resilient systems and practices
Risk assessment and controls
The ASX cyber framework outlines the
key considerations and the actions that
ASX undertakes. This is complemented
by policies, standards, procedures and
guidelines for critical areas. These documents
are periodically reviewed and updated
based on changes to the business and
technical requirements.
The Cyber Security team also performs
regular risk assessments of the ASX
environment. A risk assessment may be
triggered through the annual strategy
review process, a major project or upgrade
implementation, the identification of an
emerging risk or an issue or a request from
other areas of ASX. A process for identifying
and reporting emerging risks is also in place,
and these are discussed at the various
risk working group forums and escalated
as required.
ASX employs a range of risk-based security
controls and procedures.
Our risk and control assurance aims to test
and verify control effectiveness, respond to
external regulatory requests and address our
licence obligations. Assurance is provided
by a combination of internal teams (security
team self-assessment, enterprise risk review
and challenge and internal audit) and external
specialists (expert security firms).
In addition, the cyber security team performs
a number of activities to educate employees
and raise security awareness. ASX is cognisant
that the vast majority of security incidents are
the result of some kind of user compromise.
Employee training and awareness
activities include:
> cyber security incident scenario simulation
> new starter cyber security
‘quick guide’ training
> workshops on how to identify
phishing emails
> quarterly phishing simulations emails
> induction training for new employees
> monthly and quarterly security awareness
prizes and awards
> annual security awareness e-learning
module mandatory training
> security awareness emails and
‘town hall’ sessions.
ASX Annual Report 2024 | Sustainability report
36
Risk and compliance
ASX remained focused on strengthening risk
management and continuing to build its risk
and compliance culture.
ASX’s risk management strategy is founded
on the Three Lines of Defence model, which
provides a clear organisational structure and
clarifies roles and responsibilities for managing
risks and controls across the business:
> Line 1 is risk management within the
business divisions and functions.
The identification, assessment,
monitoring, reporting and escalation of
risks begins in Line 1. Line 1 is responsible
for managing ASX’s operations within
the Board-approved risk appetite.
> Line 2 is the independent risk
management and compliance functions
that develop risk and compliance
frameworks and policies, and oversee and
challenge risk management in the first line.
> Line 3 is the independent internal
audit function.
ASX conducts an annual review of its Risk
Appetite Statement to help make sure that
its risk tolerance is appropriate for its role
as a critical financial market infrastructure
provider, to help understand and consider
risk posture versus tolerance thresholds,
and to identify and manage areas of greater
risk to ensure that improvement is focused
in the right areas.
FY24 outcomes
Over FY24 further dedicated Line 1 risk resources were onboarded to support effective
execution of risk management, and further embed the Three Lines of Defence risk model.
There was also further consolidation and streamlining of risk profiles within lines of
business, with a focus on control testing over FY24.
Our Line 1, 2 and 3 teams report to the ASX Limited and Clearing and Settlement boards and
their committees. The Line 2 and 3 teams also report independently to the Board’s Audit and
Risk Committee.
The Enterprise Risk and Enterprise Compliance teams continue to provide oversight, advice
and guidance, challenge and training to individuals throughout the business responsible for
risk ownership and championing risk and compliance management within their teams.
The accountability framework was further improved over FY24 and was modified to reflect
some organisational changes that occurred particularly with respect to the management
of technology at ASX. Accountability scenario tests were also undertaken to ensure senior
executive understanding and to test for any gaps in the framework.
As part of our focus on risk culture, during FY24 we introduced a new mantra – Speak Up,
Listen Up, Follow Up – to further encourage people leaders and employees to listen and
action concerns that are raised.
An annual all-employee risk and compliance culture survey provides insights across a range
of dimensions, as well as for comparison and benchmarking purposes. The FY24 assessment
score was a 3% improvement on FY23.
All risks are managed through the central enterprise risk management system.
The key cyber risks identified include:
> Malware
> Data corruption
> System encryption
> Data exfiltration
> Insider threat
> Third party risk
> System compromise
37
Sustainable ASX
Modern Slavery
The primary component of our supply chain includes the manufacture, delivery, installation,
support and maintenance of the technology required to operate our infrastructure and provide
our services.
Our supply chain also includes the suppliers of various goods and services that contribute
to our general operations – these include our property agents, insurance providers, external
consultants, the companies that provide our kitchen supplies and stationery, the manufacturers
of ASX uniforms and apparel, and our security providers.
During the FY24 reporting period, our global supply chain comprised approximately 640 direct
suppliers having their base of operations located in a total of 15 countries, including Australia,
Belgium, Czech Republic, Germany, France, England, Hong Kong, India, Ireland, Luxembourg,
Malta, New Zealand, Singapore, Sweden, and the USA. ASX Group acknowledges that a number
of direct suppliers to ASX Group may have manufacturing facilities in countries other than their
base country of operation, including but not limited to Brazil, China and Mexico.
Approximately 20% of ASX Group’s total supplier spend during FY24 was attributed to 24
Tier 1 suppliers providing key goods and services to facilitate ASX Group’s operations. These
suppliers cover a range of industry sectors, including financial services and technology goods
and services, telecommunications and risk management. ASX Group’s operations require
uninterrupted access to the infrastructure that services our business, therefore our core supplier
relationships are often stable, long term relationships, rather than short term engagements.
ASX continued to raise awareness of modern slavery with all Enterprise Procurement and
Partnerships (formerly Vendor Management) employees required to complete training on
identifying, assessing and managing modern slavery risks.
Resilient systems and practices
Tax transparency
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.
ASX is proud to be an Australian company and
of the economic contribution made through
the tax paid each year.
ASX obtained a high level of assurance in
both the ATO's Streamline Assurance Review
(income tax only) and Combined Assurance
Review (income tax and GST) review. In FY24,
ASX’s effective income tax rate for the Group
was 30.4% and we paid a total tax contribution
of $364.2 million across corporate income
tax, GST, employee-related PAYG and payroll
tax, fringe benefits tax and withholding tax.
ASX’s Tax Transparency Report can be viewed
at asx.com.au/about/asx-shareholders/reports
ASX Annual Report 2024 | Sustainability report
38
Sustainable marketplace
Advocacy
ASX plays an important role in representing listed entities in relevant areas of policy
and regulation. Throughout FY24, ASX has contributed to numerous government
consultations, including making submissions to:
> Treasury’s consultations on mandatory climate-related financial disclosure,
including on the exposure draft legislation
> Treasury’s review of the regulatory framework for managed investment schemes
> The Government’s independent review of the changes to the continuous
disclosure laws
> The RBA’s consultation on increasing the threshold for the application of the
Financial Stability Standards for Securities Settlement Facilities (SSFs) from
$200 million to $40 billion in annual value of settled financial obligations
> Treasury’s consultation on draft legislation relating to Financial Market
Infrastructure Regulatory Reforms
> The Parliamentary Joint Committee’s Inquiry into the wholesale investor and
wholesale client tests.
All of ASX’s public policy submissions to government are available on the
ASX website at www.asx.com.au/about/regulation/consultations-and-submissions.
ASX also engaged with policymakers regularly throughout the year to advocate
for its policy positions including highlighting the importance of thriving capital markets
to the economy, and providing feedback on new policy initiatives to ensure that public
markets continue to function well.
Education
The ASX Sharemarket Game
This year marked 25 years of the ASX Sharemarket game, which gives participants
the opportunity to get familiar with investing and trial various investment strategies
with $50,000 of virtual money. The changing profile of sharemarket investors has
highlighted the role educational tools such as the virtual ASX Sharemarket Game
can play in preparing new investors and understanding market volatility.
We also run a high school version of the game. Since its inception in 1977, more
than four million students have participated. The game is recognised by state
education departments across Australia as an education tool for schools to explore
and benefit from. Every year students from more than 1,500 schools across Australia
and New Zealand now participate.
Investor Day
ASX Investor Day is our flagship retail investor event of the year, run biannually across
the eastern seaboard of Australia. More than 2,500 people attended the series in the
past year, and a further 8,000+ viewed the on-demand content.
Through this initiative, we provide retail investors unparalleled access to over 20 fund
managers, brokers and advisers who in turn can provide insights and expertise from
the heart of the financial markets and provide investors with practical tools and
knowledge to build their confidence and understanding of investing.
The days include presentations from industry experts on a range of topics, including:
> economic updates to understand what is impacting markets
> how to access megatrends driving global markets
> the fundamentals of building an investment portfolio
> the shift to sustainable investing.
Dynamic markets and
product innovation
ASX publications
We publish a number of publications to support
retail investors who want to become and remain
informed about investing and markets.
Every month, we send an Investor Update
newsletter that includes a range of articles to
cater for beginner, intermediate and advanced
investors, in addition to detail on new ASX
resources and events. More than 300,000 people
are subscribed to our monthly newsletter.
Listed@ASX is ASX’s online magazine featuring
interviews from industry experts and listed
organisations. Each edition is focused on sharing
the latest company news and insights, including
trends in Australia’s financial markets to help
inform and educate the public. It is available for
free on ASX’s website and each edition is emailed
directly to thousands of subscribers.
39
ASX’s role in supporting the
net zero transition
Exchanges have a crucial role to play in the
journey towards net zero. ASX is uniquely
positioned to offer the products, connectivity
and price transparency, to support our
customers by providing liquid and transparent
derivative markets to hedge transitional price
risk. This will support market participants in
meeting their emission reduction targets
and compliance obligations, and also aligns
with government policy.
Developing an environmental product ecosystem
ASX is developing an integrated ecosystem of products to support the net zero transition, which
builds upon the core electricity derivatives business. This ecosystem is intended to encompass
electricity, gas and environmental products. Australia is one of the world’s largest liquefied natural
gas exporters and the Australian Energy Market Operator implemented a Gas Supply Hub at
Wallumbilla to enable improved wholesale trading of natural gas for the East Coast gas market.
The Wallumbilla Gas Supply Hub spot volume has on average grown over 20% 1 per annum
in the past five years indicating strong demand for the physical commodity. We intend to list
Wallumbilla Gas physically deliverable futures in August 2024, and we have been developing this
product with over 25 organisations as part of an ASX working group. This highlights the strong
customer demand for the futures product. Gas is an important fuel in facilitating a smooth and
cost effective energy transition, and we may consider adding additional regional gas contracts to
ASX’s product complex to seek to further support this transition.
In July 2024, ASX launched three physically deliverable Environmental Futures contracts, over
Australian Carbon Credit Units, Large Generation Certificates and New Zealand Units. These
contracts are expected to provide a transparent forward curve for the market to hedge and
manage transitional risk. A liquid Environmental Futures market at scale, can help capital flow
to projects that support the energy transition and result in carbon abatement. The physically
deliverable nature of these products also allows for the surrender to the relevant registries, and
enabling ASX’s customers to meet their compliance obligations.
The listing of gas and environmental derivative products for Australia and New Zealand seeks to
address a key challenge, which is the lack of forward price transparency and risk management
tools to support the investment in clean energy projects, and enabling capital to flow towards
projects with significant carbon abatement potential.
Dynamic markets and
product innovation
1. Australian Energy Regulator industry charts: Wallumbilla Gas Supply Hub – trade volume and VWA places by pipeline.
Sustainable marketplace
ASX Annual Report 2024 | Sustainability report
40
Developing a product ecosystem to support the net zero transition
Electricity futures
Gas futures
Environmental futures
(including carbon)
Exploring opportunity with
Clean Energy Regulator
to run Carbon Exchange
The net zero transition
creates volatility and
uncertainty.
Supporting customers
to manage their risk.
ASX will play a critical financial
market role by operating
liquid and transparent
derivatives markets.
Exploring the development of a carbon exchange
ASX is also in preliminary discussions with the Clean
Energy Regulator to explore the option of developing a
robust and effective model for a spot carbon exchange
to address existing market place challenges, focusing
initially on Australian Carbon Credit Units. The exchange
could offer a centralised, standardised and regulated
marketplace, and could potentially leverage ASX’s existing
cash market trading platform for execution, and clearing
and settlement via ASX Clear and ASX Settlement.
Providing new insights through data
The environmental product ecosystem that is being developed will offer
ASX the opportunity to provide new datasets and address new areas of
market demand.
Another opportunity comes from listed company disclosure data.
Companies are being asked to disclose more information in line with
Australia’s emerging climate reporting standards. Simultaneously,
investors have an appetite for more detailed, accurate and
comparable disclosures.
ASX is exploring what role it could play in helping with these challenges,
as well as looking more generally at how we can improve the
accessibility of data and insights contained within company disclosures.
41
ASX
ASX is committed to ensuring its governance
arrangements are commensurate with the nature
and scope of its operations.
Governance
1. ASX Clear Pty Limited (ASX Clear) – a central counterparty for the ASX market and other
approved Australian equity markets; ASX Clear (Futures) Pty Limited (ASX Clear (Futures))
– a central counterparty for the ASX24 market and for AUD and NZD-denominated OTC
interest rate derivatives; ASX Settlement Pty Limited (ASX Settlement) – a securities
settlement facility for the ASX market and other approved Australian equity markets;
Austraclear Limited (Austraclear) – a securities settlement facility for Australia’s wholesale
debt market.
2. ASX Clearing Corporation Limited is the intermediate holding company for ASX Clear and
ASX Clear (Futures), and holds on trust the financial resources they may use in the event
of a participant default. ASX Settlement Corporation Limited is the intermediate holding
company for ASX Settlement and Austraclear Limited.
The ASX Group, which includes ASX and its related entities, provides critical market
infrastructure to Australia’s and New Zealand’s financial markets. The ASX Group’s
operations include holding licences to operate markets and clearing and settlement
facilities, and administering benchmarks. As a market licensee (operating the ASX market)
and an ASX-listed entity itself, ASX is regulated by ASIC. ASIC also regulates ASX’s wholly
owned subsidiaries that operate the ASX24 market and administer benchmarks.
ASX’s clearing and settlement facilities (CS facilities) are operated by four wholly
owned subsidiaries (CS facility licensees) 1 that are regulated by ASIC and the RBA.
Together with two intermediary holding companies,2 these are referred to as the CS
subsidiaries and are governed by their respective boards (collectively, the CS Boards).
The CS facility licensees are subject to a number of regulatory obligations, including
obligations under Part 7.3 of the Corporations Act 2001 (Cth) and obligations relating
to compliance with the financial stability standards (FSS) determined by the RBA.
The FSS include requirements relating to governance.
The ASX Board believes that good governance underpins strong
business performance and is essential to retaining the trust and
goodwill of ASX’s stakeholders, including shareholders, employees,
regulators, customers, market participants, and the broader market.
At the core of ASX’s approach to governance
are the eight corporate governance
principles promoted by the ASX Corporate
Governance Council:
> Lay solid foundations for management
and oversight
> Structure the board to be effective and
add value
> Instil a culture of acting lawfully, ethically
and responsibly
> Safeguard the integrity of corporate reports
> Make timely and balanced disclosure
> Respect the rights of security holders
> Recognise and manage risk
> Remunerate fairly and responsibly
ASX has established a corporate governance
framework within and by which authority
is exercised and controlled within the ASX
Group. The key elements of ASX’s governance
framework are set out in the facing diagram:
ASX Annual Report 2024 | Governance
42
The Board governance layer focuses on the role and responsibilities
of the ASX Group Boards and Board Committees. The Management
governance layer focuses on the role and responsibilities of the
Managing Director and Chief Executive Officer (CEO) and Group
Executives. The People governance layer focuses on the responsibility
of our people for adhering to ASX’s values, the standards of behaviour
set out in the ASX Code of Conduct and ASX policies and procedures.
Ou
r g
ov
ern
anc
e fr
am
ew
ork
is
sup
por
te
d b
y
Risk Appetite
Statement and
Enterprise Risk
Management
Framework
Accountability
Framework
Performance,
Remuneration
and Reward
Frameworks
ASX
Constitution
Purpose,
Vision,
Strategy
and Values
Code of
Conduct
Internal and
external
audit
Charters
and
policies
ASX Limited Board
and CS Boards
(Meeting separately or concurrently as appropriate)
Our people
Managing Director and CEO
Executive Team
Management Committees
Management
Board Committees
Audit and
Risk
Committee
People and
Culture
Committee
Nomination
Committee
Technology
Committee
The ASX Board and its Committees periodically review ASX’s
corporate governance arrangements and practices to ensure they
continue to be aligned with regulatory requirements, developments
in recommended corporate governance practices, stakeholder
expectations, and ASX’s strategic objectives. Throughout the financial
year ended 30 June 2024, ASX’s corporate governance arrangements
followed the fourth edition of the ASX Corporate Governance Council’s
corporate governance principles and recommendations.
43
Damian Roche
Independent Non-Executive Director,
Chair
BCom
Mr Damian Roche was elected ASX’s Chair
in April 2021 and has served as a director
since August 2014. He is Chair of the
Nomination Committee and has been a
member of the Audit and Risk Committee
and the People and Culture Committee
since 21 April 2021.
Mr Roche is a director of ASX Clear
(Futures) Pty Limited, the ASX clearing
and settlement licensee for Australia’s
derivatives markets. He is also Chair of
the intermediate holding companies for
ASX’s clearing and settlement licensees.
Mr Roche has more than 30 years’
experience in global financial markets,
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. During his career, he managed
relationships with global investors and
market participants, built new products
and capabilities across sales, trading and
execution, assessed and implemented
related technology investments and liaised
with regulators across multiple jurisdictions.
Mr Roche was a member of the global
Corporate and Investment Bank Operating
Committee for J.P. Morgan where he
worked for 10 years. His final role at
J.P. Morgan 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.
Helen Lofthouse
Managing Director and CEO,
Executive Director
BSc (Hons), GAICD
Ms Helen Lofthouse commenced as
ASX’s Managing Director and Chief
Executive Officer in August 2022. She
is also a director of the ASX clearing
and settlement licensees and their
intermediate holding companies.
Ms Lofthouse is an accomplished financial
markets executive with more than
25 years’ experience in cash equity and
debt markets, listed and OTC derivatives,
and clearing and settlement services. She
joined ASX in September 2015 and has held
senior executive roles with the company,
including Group Executive, Markets.
Prior to ASX, Ms Lofthouse was a Managing
Director at UBS with global responsibility
for the OTC clearing business, and
worked at J.P. Morgan in London in various
businesses including futures and OTC
clearing, derivatives prime brokerage,
credit markets and cash equities.
Ms Lofthouse was announced as one of the
World Federation of Exchanges’ Women
Leaders for 2021 and is a Graduate of the
Australian Institute of Company Directors.
ASX Limited
Board of Directors
ASX Annual Report 2024 | Governance
44
Yasmin Allen AM
Independent Non-Executive Director
BCom, FAICD
Ms Yasmin Allen was appointed a
director of ASX in February 2015. She has
been a member of the Audit and Risk
Committee since 2015 and the Technology
Committee since its inception in May
2022. Ms Allen served as 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, from August 2015
until June 2023.
Ms Allen has more than 20 years’
experience in the finance industry,
including in investment banking, and
has expertise in financial services,
strategy development and corporate
governance. She was formerly a vice
president at Deutsche Bank, a director
at ANZ Investment Bank and an
associate director at HSBC Group.
Ms Allen has been a director of Santos
Limited since October 2014. She was
appointed a non-executive director of
QBE Insurance Group Limited in July
2022. Ms Allen’s previous appointments
include director of Cochlear Limited
between August 2010 and March 2024 and
Insurance Australia Group Limited between
November 2004 and September 2015.
Ms Allen was appointed Chair of
Future Skills Organisation (Department
of Employment) in January 2020 and
Chair of Tiimely (Tic:Toc) Online in
November 2021.
Ms Allen is also Chair of the Harrison
Riedel Foundation for youth mental health
and Acting President of the Australian
Government Takeovers Panel. She is
also a Fellow of the Australian Institute
of Company Directors.
Wayne Byres
Independent Non-Executive Director
BEc(Hons), MAppFin, SFFin, GAICD
Mr Wayne Byres was appointed as a
director of ASX in May 2024.
Mr Byres is an experienced leader with
extensive expertise, both domestic and
international, in the Australian financial
system, financial services regulation,
risk management, governance, and
public policy.
Mr Byres is a former Chair of the Australian
Prudential Regulation Authority (APRA),
a role he held for eight years. During that
time, he also served on the Reserve Bank
of Australia’s Payments Systems Board,
and was a member of the Australian
Council of Financial Regulators.
Prior to being appointed by the Australian
Government as Chair of APRA, Mr Byres
served as the Secretary General of the
Basel Committee on Banking Supervision,
the global standard-setter for banking
regulation and supervision. His earlier
career included roles with APRA, the
Reserve Bank of Australia and the Bank
of England.
More recently, Mr Byres has worked
in an advisory capacity with the
International Monetary Fund. He is also
currently a non-executive director of
Macquarie Bank Limited.
Mr Byres is a Graduate of the Australian
Institute of Company Directors.
Vicki Carter
Independent Non-Executive Director
BA (Social Sciences), GradDipMgmt, GAICD
Ms Vicki Carter was appointed a
director of ASX in February 2023. She is
a member of the Nomination Committee,
People and Culture Committee and
Technology Committee.
Ms Carter brings more than 35 years’
senior executive experience. Her most
recent executive experience was at Telstra
Corporation, where she was responsible
for customer experience, product design
and delivery, strategy and business service
functions. She was also charged with
overseeing delivery of Telstra’s multi-year
transformation program.
She has deep skills in strategy, operations,
sales, human resources and transformation
delivery in a career that has spanned
several sectors including banking,
insurance, wealth management and
telecommunications.
Prior to her career with Telstra, Ms Carter
held a number of executive roles at
National Australia Bank, as well as product,
business development and project director
roles at ING Australia, Prudential Assurance
and Australian Eagle.
Ms Carter has been a non-executive
director of Bendigo and Adelaide Bank
Limited since September 2018 and was
appointed as Chair on 13 May 2024. She
has also been a director of IPH Limited
since October 2022 and retired as
Chair of Sandhurst Trustees Limited on
15 August 2024. She is a Graduate of the
Australian Institute of Company Directors.
45
Melinda Conrad
Independent
Non-Executive Director
BA, MBA, FAICD
Ms Melinda Conrad was appointed a
director of ASX in August 2016. She
has been a member of the People and
Culture Committee and the Nomination
Committee since October 2019 and was
appointed Chair of the People and Culture
Committee in 2022. She has been a
member of the Technology Committee
since its inception in May 2022.
Ms Conrad has more than 25 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. She has been
a strategy and marketing adviser, an
executive with Colgate-Palmolive, and
founded and managed a retail business.
Ms Conrad was appointed a director
of Stockland Corporation Limited and
Stockland Trust in May 2018, Ampol
Limited in March 2017, and Penten Pty
Ltd in August 2021. Ms Conrad’s previous
appointments include director of OFX
Group Limited, The Reject Shop Limited,
David Jones Limited and APN News &
Media Limited.
Ms Conrad is also a director of the Centre
for Independent Studies, a member of the
AICD Corporate Governance Committee
and an Advisory Board Member of Five V
Capital. She is a Fellow of the Australian
Institute of Company Directors and a
Member of Chief Executive Women.
David Curran
Independent
Non-Executive Director
BCom
Mr Dave Curran was appointed a director
of ASX in March 2022. He is the inaugural
Chair of the Technology Committee,
established in May 2022, and a member
of the Audit and Risk Committee.
Mr Curran has more than 30 years’
experience in the finance and technology
sectors. He has built significant experience
in digitally transforming organisations to
better serve their customers and deliver
stronger performance. He has led digital
transformations and implemented large,
complex projects across the Australian
banking and financial services landscape.
Mr Curran was formerly Westpac’s
Group Chief Information Officer and has
previously held executive technology
roles at the Commonwealth Bank of
Australia (CBA), where he led the Group’s
technology transformation including
the industry-leading modernisation of
CBA’s deposit and lending capabilities.
Mr Curran is Chair of Elemnta and
Chair of the Westpac Scholars Trust,
which provides 100 scholarships every
year to challenge, explore and set new
benchmarks in innovation, research and
social change. Mr Curran is currently
a director of QBE’s Australia Pacific
Operations Board. He is also a board
member of Tour de Cure, a cancer
research, support and education charity
and Quintessence Labs, a global leader
in quantum cyber security.
ASX Limited
Board of Directors
ASX Annual Report 2024 | Governance
46
Peter Nash
Independent
Non-Executive Director
BCom, FCA, MAICD
Mr Peter Nash was appointed a director of
ASX in June 2019. He has been Chair of the
Audit and Risk Committee since August
2021, having served on the Committee
since June 2020. He has also been a
member of the Technology Committee
since its inception in May 2022.
Mr Nash was a partner at KPMG Australia
for more than 20 years, including serving
as the National Chair for six years. In
this role, he also served as a member
of KPMG’s Global and Regional Boards
and was the Chair of KPMG’s Global
Investment Committee. Mr Nash’s previous
positions with KPMG included Regional
Head of Audit for Asia Pacific, National
Managing Partner for Audit in Australia and
head of KPMG Financial Services. In his
role as National Chair, he was responsible
for the overall governance and strategic
positioning of KPMG in Australia.
Mr Nash has worked in geographically
diverse and complex operating
environments providing advice on a range
of topics including business strategy, risk
management, internal controls, business
processes and regulatory change. He
has also provided both financial and
commercial advice to government
businesses at both a federal and state level.
Mr Nash has been Chair of Johns Lyng
Group Limited since its admission to the
official list of ASX in October 2017 and
he has been a non-executive director of
Westpac Banking Corporation since March
2018 and of Mirvac Group Limited since
November 2018.
Mr Nash is a board member of the
General Sir John Monash Foundation
and The Social Policy Group.
Mr Nash is a Member of the Australian
Institute of Company Directors.
Luke Randell
Independent
Non-Executive Director
BBus, Grad Dip Fin Markets, CPA, MAICD
Mr Luke Randell was appointed a director
of ASX in April 2023. He is also a director
of ASX’s clearing and settlement licensees
as well as the intermediate holding
companies for the clearing and settlement
licensees. He has also been a member
of the Audit and Risk Committee since
April 2023.
Mr Randell has close to 40 years’
experience in financial services with the
majority spent in capital and international
markets following several senior roles with
firms including Citi, Salomon Smith Barney,
and Natwest Markets.
Mr Randell was Head of Markets and
Securities Service for Citi Australia and
New Zealand for five years. His prior
roles included being CEO, President
and Head of Institutional Clients Group
for Citi in Japan, as well as Co-Head of
Global Markets and Head of Equities
for Citi in Australia and New Zealand.
He has also worked a number of years
in London where he was Citi’s Head of
Equity Derivatives for Europe, Middle East
and Africa.
Mr Randell is a Member of the Australian
Institute of Company Directors.
Dr Heather Smith PSM FAIIA
Independent
Non-Executive Director
BEc (Hons), PhD
Dr Heather Smith was appointed a director
of ASX in June 2022. She 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.
Dr Smith has close to 20 years’ experience
working in the Australian Public Service
at senior levels, culminating in being
Secretary of the Department of Industry,
Innovation and Science. She has also
previously served as Secretary of the
Department of Communications and
the Arts. She has extensive experience in
public policy, innovation and technological
change, national security and economic
reform and a deep knowledge of
government and the public sector.
Dr Smith has also held senior positions in
the departments of Prime Minister and
Cabinet, Foreign Affairs and Trade, and the
Treasury, as well as the Office of National
Intelligence. She began her career at the
Reserve Bank of Australia.
Dr Smith has a PhD in Economics from
the Australian National University (ANU).
She has been a non-executive director
of Challenger Limited since January 2021
and chairs Challenger’s Group Audit
Committee, and she has been a non-
executive director of Qantas Airways
Limited since August 2023.
Dr Smith is also an independent director
of the Reef Restoration and Adaptation
Program. She is a Fellow and National
President of the Australian Institute of
International Affairs.
47
ASX
Governance
The ASX Board believes that
good governance underpins strong
business performance
ASX Annual Report 2024 | Governance
48
The role of the ASX Board
The role of the ASX Board is to provide leadership, strategic
guidance, and oversight for the ASX Group. The ASX Board has
a charter that sets out its role, responsibilities, composition, and
operation, and the allocation of responsibilities between the ASX
Board, the CS Boards, Board Committees, and management.
The ASX Board’s responsibilities include approving the ASX Group’s
values, code of conduct, and key policies and frameworks, defining the
ASX Group’s purpose and strategic objectives, approving the annual
budget and financial plans, setting ASX’s risk strategy and risk appetite,
and appointing, replacing and assessing the performance of the CEO.
The ASX Board monitors ASX’s financial performance and oversees
the ASX Group’s achievement of its strategic objectives, including for
consistency with ASX’s risk management strategy and risk appetite.
The ASX Board has set ASX’s purpose as “to power a stronger
economic future by enabling a fair and dynamic marketplace for all”.
The CS Boards
The role of the CS Boards is to provide leadership, guidance, and
oversight of the clearing and settlement operations of the CS
subsidiaries and monitor the execution of the strategy developed by
management to comply with the CS facility licensees’ statutory and
regulatory obligations. The CS Boards have their own charter that
sets out their composition, operating procedures, and responsibilities.
Board composition
The ASX Board currently comprises 10 directors following the
appointment of Wayne Byres in May 2024. This includes nine
independent non-executive directors and one executive director,
being the CEO.
The ASX Board has adopted guidelines on director independence and
director tenure. ASX’s policy and guideline regarding the assessment
of director independence includes a materiality threshold to be applied
when assessing whether customer, supplier, consultant or professional
adviser relationships affect the independence of an ASX director.
The guidelines on tenure for the ASX Board provide that non-executive
directors may serve up until the date of the 9th AGM after the
date they are first elected at an AGM, and until the 12th AGM in
the case of the ASX Chair. The ASX Board has discretion to extend
the specified maximum term where the Board considers that an
extension is in ASX’s best interests.
The CS Boards’ Charter provides that at least half of the
non-executive directors of the CS facility licensees must be
non-executive directors who are not also directors of ASX.
Biographies (including tenure details) for all ASX Directors are
provided on pages 44 to 47 and on the ASX website.
Board Committees
The ASX Board has established four Board Committees to assist it
in discharging its responsibilities – the Audit and Risk Committee,
the Nomination Committee, the People and Culture Committee,
and the Technology Committee. The four Board Committees also
assist the CS Boards in discharging their responsibilities. The role
and responsibilities of each Board Committee are set out in their
charters that are published on the ASX website.
Delegation to the CEO
The ASX Board has delegated the day-to-day management of
ASX to the CEO, including the execution of approved strategies.
The CEO in turn delegates to the executive management team
subject to the limits set by the Board. The CS Boards have also
delegated day-to-day management of the CS subsidiaries to
the CEO. The CEO is accountable to the Boards for the authority
delegated to all levels of management.
The CEO’s key responsibilities include:
> Developing the ASX Group’s strategic objectives and
strategies for Board approval
> Implementing the Code of Conduct
> Executing the Board-approved strategy and achieving
ASX’s strategic objectives
> Day-to-day management and operation of the ASX Group in
accordance with the risk appetite set by the Board, the policies
and procedures adopted by the Board and the implementation
of processes, policies, systems, and controls necessary or
appropriate to manage the ASX Group
> Timely presentation of accurate and clear information to the
Boards to enable them to fulfil their responsibilities
The CEO has established an executive management team
comprising the CEO and all Group Executives (Executive Team).
The Executive Team meets regularly, and meetings are normally
chaired by the CEO. ASX has also established a number of
management committees comprised of senior executives that
exercise certain delegated authorities from the CEO, including
the Technology Management Committee, Risk Committee,
Continuous Disclosure Committee and Regulatory Committee. The
Executive Team operates in parallel with these formal management
committees and considers business division updates, strategy, new
business initiatives, non-risk-related frameworks, people matters,
budgets, risk, and escalation issues.
The Group Executive, Securities and Payments has been appointed
the CS Lead Executive for three of the CS facility licensees –
ASX Clear, ASX Settlement and Austraclear. The Group Executive,
Markets, has been appointed the CS Lead Executive for ASX
Clear (Futures). Each CS Lead Executive is accountable to the
CS Boards for the operation of the relevant CS facility and the
achievement of strategies and objectives for the CS facility as
approved by the CS Boards.
The CEO is responsible for ensuring that sufficient resources are
made available for the operation of the CS facilities. Resources
are generally made available between ASX Group companies
under an intra-group support agreement. This includes financial,
human and technological resources, and any other resources
required by the ASX Group.
49
Board Skills Matrix
The ASX Board is comprised of experienced business leaders with a variety of professional backgrounds who collectively have extensive experience
in the skill categories the Board has identified as necessary to enable the Board to discharge its responsibilities effectively.
The ASX Board has developed a Board Skills Matrix to capture the current mix of skills, experience and diversity on the Board. The Board reviews
the Skills Matrix annually to ensure that the mix of skills on the Board remains appropriate and to inform director professional development and
board succession planning. The Board’s current assessment of its skills coverage is set out in the Skills Matrix below.
High
Recognised as an expert on the basis of high
competency, knowledge and experience
Practised
Strong understanding of the concepts
and issues built on repeated practical or
direct experience
Awareness
Good general awareness and understanding
Category
Description
Strength of skill
Risk
management
Experience in identifying, and monitoring mitigation strategies for, existing and emerging
financial and non-financial risks and in monitoring the effectiveness of risk management
frameworks and practices.
7
3
Technology
and cyber
Experience in overseeing the use and governance of critical information technology
infrastructure, and setting and overseeing the implementation of complex technology
strategies. Experience and ability to identify, assess and manage risks associated with
technology, including cyber security, resiliency, data protection and technology related
regulatory requirements.
2
2
6
Financial
markets and
services
Experience in the financial services industry (for example, derivative products, funds
management, superannuation, investment banking), financial products and licensed financial
markets including market infrastructure, pre-trade and post-trade services and maintaining
market integrity.
5
1
4
Strategy
Experience in defining strategic objectives, constructively challenging business plans and
implementing strategy.
10
Stakeholder
engagement
Experience in building and maintaining trusted and collaborative relationships with key
stakeholders including regulators, industry and community groups and governments.
5
1
4
Customer
Understanding of existing and evolving customer needs and trends including the provision
of technology services and their impacts on customer experience and the commercialisation
of data products. Experience in developing and delivering products and services focused on
enhanced customer outcomes.
5
5
People and
culture
Experience in overseeing and assessing senior management, remuneration and reward
frameworks, strategic human resource management and promoting and overseeing a safe,
respectful and inclusive workplace culture aligned with corporate values.
7
3
Financial
acumen
Experience in accounting, financial reporting and corporate finance including the ability to
assess the quality of internal accounting, financial controls and financial reporting.
5
1
4
Corporate
governance
Knowledge, experience and commitment to the highest standards of governance and
experience in overseeing effective governance frameworks.
6
4
Regulatory and
public policy
Knowledge and experience in contributing to and shaping public policy decisions and
outcomes, assessing the impact of legal, public and regulatory policy developments on
financial markets and corporations, and managing such impacts.
3
1
6
Executive
leadership
Successful career as a CEO or senior executive in a large, complex organisation.
9
1
Environment
and social
Experience in identifying and monitoring environmental and social risks and opportunities,
setting and monitoring progress towards sustainability aspirations, knowledge of sustainability
reporting standards and ability to assess the quality of sustainability reporting.
1
4
5
Business Conduct
ASX’s Code of Conduct, Anti-Bribery and Corruption Policy, and Whistleblower Protection Policy set the standards of behaviour expected from our
people. These policies apply to directors, employees and contractors.
During the financial year ended 30 June 2024, the ASX Board approved updates to the Whistleblower Protection Policy.
Material breaches of the Code of Conduct or the Anti-Bribery and Corruption Policy, and material incidents reported under the Whistleblower
Protection Policy, are reported to the Audit and Risk Committee and/or Board.
Regular employee training is provided on the Code of Conduct, the Anti-Bribery and Corruption Policy, and the Whistleblower Protection Policy.
An overview of ASX’s Values program and People and Culture strategy is set out on pages 30 to 35.
ASX
Governance
ASX Annual Report 2024 | Governance
50
Meeting attendances
The ASX and CS Boards meet as often as necessary to fulfil their roles, and directors are required to allocate sufficient time to perform their
responsibilities effectively, including adequate time to prepare for Board meetings.
Agendas, papers and minutes of Board Committee meetings are made available to all ASX Group Directors (subject to any conflicts), and the
Chair of each Board Committee reports to the ASX and CS Boards in relation to the business of each Committee meeting. This is to help ensure
access to information regardless of committee membership.
The CEO, Chief Financial Officer (CFO), Chief Risk Officer (CRO), and Group General Counsel and Company Secretary generally attend all
scheduled ASX and CS Board meetings and the other members of the Executive Team also regularly attend and present at Board meetings.
Management delivers deep dive presentations to the ASX Board throughout the year. The deep dives involve one of the four business units within
the ASX Group (Listings, Markets, Technology and Data, and Securities and Payments) scheduled on a rotating basis, presenting an in-depth update
on their business to the ASX Board. The presentations are delivered by the key members of the management team within the relevant business unit.
Details of the Board and Board Committee meetings held during the reporting period and director attendances at those meetings are set out in
the table below. Attendance at CS Boards meetings is reported for directors who are on one or more of the CS Boards and for meetings at which all
directors are invited (it does not include any meetings of the non-ASX directors only).
Director name
ASX Board
Audit and Risk
Committee
Nomination
Committee
People and Culture
Committee
Technology
Committee
ASX Board
Sub-Committee1
CS Boards
Held
Attended
Held
Attended
Held
Attended
Held
Attended
Held
Attended
Held
Attended
Held
Attended
Damian Roche
11
11
4
4
5
5
7
7
—
—
9
9
10
10
Helen Lofthouse
11
11
—
—
—
—
—
—
—
—
4
4
10
10
Yasmin Allen
11
11
4
4
—
—
—
—
4
4
—
—
—
—
Wayne Byres 2
2
2
—
—
—
—
—
—
—
—
—
—
—
—
Vicki Carter
11
11
—
—
5
5
7
7
4
4
—
—
—
—
Melinda Conrad
11
11
—
—
5
5
7
7
4
4
1
1
—
—
David Curran
11
10
4
4
—
—
—
—
4
4
3
3
—
—
Peter Marriott 3
2
2
—
—
—
—
—
—
—
—
—
—
1
1
Peter Nash
11
11
4
4
—
—
—
—
4
4
5
5
—
—
Luke Randell
11
11
4
4
—
—
—
—
—
—
—
—
10
10
Heather Smith
11
11
—
—
—
—
—
—
—
—
—
—
10
10
Directors on CS Boards (non-ASX)
John Buckley 4
—
—
—
—
—
—
—
—
—
—
9
8
Carolyn Colley
—
—
—
—
—
—
4
4
1
0
10
10
Stephen Knight
—
—
—
—
—
—
—
—
2
2
10
10
Adrian Todd
—
—
—
—
—
—
—
—
—
—
10
10
1. ASX Board subcommittees are formed to deal with ad-hoc and financial matters throughout the year. Attendance is reported only in respect of sub-committees
formed by the ASX Limited Board or jointly with one or more of the CS Boards. Sub-committee meetings for the CS Boards only are not reported.
2. Appointed an ASX director on 6 May 2024.
3. Retired on 16 August 2023.
4. Appointed a director on the CS Boards on 25 August 2023.
Annual Corporate Governance Statement
Further information on ASX’s governance arrangements,
including ASX’s most recent annual corporate governance
statement, is available on ASX’s website at:
www.asx.com.au/about/corporate-governance
51
ASX
Remuneration report 2024
Dear Shareholders,
On behalf of the Board, I am pleased to present ASX’s 2024
Remuneration Report.
FY24 was the first year of our five year strategy. This strategy
represents a clear path to deliver a ‘new era ASX’.
Strong progress
The Board is pleased with the strong progress made in the first year of
our five year strategy. As outlined in our ASX Scorecard, there are
a number of notable achievements:
> We made significant progress on our regulatory commitments
during the past year, uplifting our governance, stakeholder
engagement and delivery capability.
> We delivered a series of important reports and initiatives that
provide additional transparency to our regulatory agencies and other
stakeholders on how we are changing and improving.
> We continued the modernisation of our technology stack. We made
strong progress in our three major technology projects in CHESS
Resilience and Replacement, Derivatives Clearing, and Trading.
> The Board’s focus on non-executive director renewal is ongoing
and we welcomed the appointment of Wayne Byres to the Board
in May 2024.
The financial results of the organisation in FY24 were solid:
> The strength of ASX’s diversified businesses was evidenced by
record revenue in FY24 despite challenging markets.
> ASX’s total operating expense growth in FY24 was within the
guidance provided at the 2023 Investor Day and represents the
significant investment we made in our key focus areas of regulatory
commitments and technology modernisation. The investment in
these areas is crucial to support the long term sustainability of ASX
and shareholder value.
> We are continuing our focus on business rationalisation that aims
to sharply prioritise activities, simplify processes, reduce duplication
and optimise our workforce.
Changes to the remuneration framework for FY24
ASX’s five year strategy provides clear focus on how we will achieve
our vision of being the market’s choice, inspiring confidence and
trust. To support this long term ambition, we have extended the
long term variable reward (LTVR) Plan to the Executive Team and
introduced the underlying return on equity (ROE) hurdle, which is a
key measure of the achievement of our strategy. The Board believes
this change appropriately focuses the Executive Team on generating
sustainable long term financial outcomes for our shareholders.
In making this change, we maintained the Executive Team’s total
reward at existing levels on a target basis. To achieve this, we reduced
the weight of the short term variable reward (STVR) component.
In FY24, we also introduced the new ASX Scorecard. The FY24 ASX
Scorecard outlines the key priority areas of the first year of ASX’s
five year strategy. Board and management oversight of progress has
been sharpened through a new, enterprise-wide quarterly business
review process.
For FY24, the execution of our strategy is centred on technology
modernisation and regulatory commitments. Reliability, efficient
operating capability and meeting our regulatory commitments are
fundamental to the health of the market, the maintenance of our
licences and ultimately the value ASX can generate for shareholders.
The FY24 ASX Scorecard weighting reflects the importance of
these outcomes and the Board believes this is appropriate for ASX
as a provider of critical national market infrastructure.
While financial outcomes are predominately in the shareholder
perspective, outcomes from other perspectives such as
improvement of market quality are also relevant measures of the
value ASX generates for shareholders.
Performance-based remuneration overall, comprising the STVR
and LTVR, is more heavily weighted to financial than non-financial
measures. The weighting of financial outcomes within ASX’s variable
reward plans is consistent with many other regulated financial services
organisations. Through the variable reward plans, executive interests
are aligned with the generation of long term, sustainable financial
outcomes that benefit our shareholders.
FY24 remuneration outcomes
The Board is committed to ensuring reward outcomes are reflective
of performance and aligned to outcomes for shareholders. Based on
ASX’s performance, the Board determined that the Group incentive
pool was 100% of target. Further detail regarding how the incentive
pool was determined is discussed in the ASX Scorecard in section 3.2
of this Remuneration Report.
The Board conducts a holistic evaluation of the performance of the
Executive capitalise Key Management Personnel (KMP), including their
behaviours and the discharge of their accountabilities. In FY24, the
STVR outcomes for the Executive KMP ranged from 90% to 115% of
their target STVR, with the average STVR outcome being 103%.
No LTVR was tested in FY24, as the 2019 LTVR awards issued to the
former CEO and Deputy CEO were cancelled by the Board, due to the
Board applying malus under the Remuneration Adjustments Policy to
reflect the status of the CHESS Replacement project at that time.
In addition to the Board’s decision in 2022 to cancel outstanding LTVR
awards, in 2023 the Board also adjusted the STVR pool and cancelled
deferred STVR awards for executives accountable for the CHESS
Replacement project. Details of this decision were disclosed in last
year’s Remuneration Report.
In FY24, the Board determined that there were no known issues at the
date of this report which warranted the further application of malus
beyond the adjustments already applied.
The Board continues to monitor risk management issues, assessing
the appropriateness of remuneration outcomes and adjusting variable
remuneration where it believes this represents an inappropriate benefit.
The year ahead
As we look forward, our overarching executive remuneration
framework for FY25 will remain unchanged. No Executive KMP
will receive an increase in remuneration in FY25. There will be
no change to fees for the non-executive directors for FY25.
The ASX director base fees have remained unchanged since 2017
and committee fees remain unchanged since 2022.
We continue to review the annual targets within the ASX Scorecard for
alignment to strategy and to ensure they are appropriately challenging.
The review will consider the relative weightings of each perspective as
ASX delivers against the phases of the five year strategy.
I want to thank our people for their ongoing strong commitment to
our new vision and their effort in delivering the first year of our new
strategy. This year has been one of significant investment in the
foundational capabilities for a resilient and well governed ASX into
the future.
We look forward to continuing our work to deliver the ‘new era ASX’.
Melinda Conrad | Chair, People and Culture Committee
ASX Annual Report 2024 | Remuneration report
52
Contents
1. Key Management Personnel covered in this report
53
2. Overview of ASX remuneration framework
54
3. Snapshot of FY24 Group performance and reward
55
4. Executive remuneration framework in detail
59
5. Remuneration governance
63
6. Statutory remuneration disclosure – Executive KMP
65
7. Non-executive director remuneration arrangements
67
1.
Key Management Personnel covered in this report
This Remuneration Report details KMP performance and remuneration for FY24. 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 Executive Team members who are accountable for managing critical business activities that uphold ASX’s licences to operate,
financial control, or risk functions (collectively termed Executive KMP).
Name
Role
Term as KMP
Non-executive directors
D Roche
Non-executive director
Full year
Y A Allen
Non-executive director
Full year
W S Byres
Non-executive director
Commenced 6 May 2024
V A Carter
Non-executive director
Full year
M B Conrad
Non-executive director
Full year
D T Curran
Non-executive director
Full year
P S Nash
Non-executive director
Full year
L A Randell
Non-executive director
Full year
H J Smith
Non-executive director
Full year
Former non-executive directors
P R Marriott
Non-executive director
Ceased 16 August 2023
Executive KMP
H M Lofthouse
Managing Director and Chief Executive Officer (CEO)
Full year
A L Tobin
Chief Financial Officer (CFO)
Full year
H J Treleaven
Chief Risk Officer (CRO)
Full year
C Triance
Group Executive, Securities and Payments (GE Securities and Payments)
Commenced 14 August 2023
D C Yip
Group Executive, Markets (GE Markets)
Full year
53
ASX
Remuneration report
2. Overview of ASX remuneration framework
OUR PURPOSE: To power a stronger economic future by enabling a fair and dynamic marketplace for all
OUR VISION: ASX is in a new era. We are the market’s choice, inspiring confidence and trust
ACHIEVED BY FOCUSING ON OUR STRATEGIC PILLARS:
One ASX
Great fundamentals
Customer driven
Digital by design
UNDERPINNED BY OUR REWARD PRINCIPLES:
Aligned to vision
and strategy
Customer
focused
Holistic
performance
Risk
aligned
Market
competitive
Fair and
equitable
DELIVERED THROUGH:
Remuneration
framework
Purpose
Alignment
Process
Fixed
Remuneration
Attracts and retains the talent
required to deliver ASX’s strategy.
Benchmarked against key talent markets from
banking, finance, legal and technology, or to the
broader market.
Base salary, superannuation,
and salary-sacrificed items
including non-monetary
benefits.
Short term
variable reward
(STVR)
Rewards the achievement
of financial and non-financial
outcomes that support the
Group's strategy.
Measured through the ASX Scorecard, modified
by assessments of the management of risk,
behaviours aligned to ASX’s values and each
Executive KMP’s accountabilities.
A mix of cash and restricted
shares for one and two years.
Long term
variable reward
(LTVR)
Rewards performance that
creates long term value
for shareholders.
The combination of relative Total Shareholder
Return against the ASX 100 companies (50%)
and underlying Return on Equity (50%) hurdles,
measured over four years.
Performance rights.
Risk alignment
All variable remuneration may be subject to ASX’s Remuneration Adjustments Policy (see section 5.4), to ensure alignment
between risk and remuneration outcomes. The Board retains the discretion to adjust downwards in-year STVR awards as
well as the unvested portion of any deferred STVR or LTVR awards, including to zero.
Share ownership
The Group CEO and Executive KMP (other than the CRO) are expected to accumulate and hold shares or vested rights
equal to 100% of their fixed remuneration over a five year accumulation period. The CRO is expected to accumulate and hold
shares or vested rights equal to 50% of their fixed remuneration over a five year accumulation period.
ASX Annual Report 2024 | Remuneration report
54
3. Snapshot of FY24 Group performance and reward
3.1 Remuneration received or available in the financial year for current Executive KMP (Non-IFRS)
This section provides a snapshot of the performance of the Group and the corresponding remuneration outcomes for current Executive KMP.
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 Executive KMP 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 of this Remuneration Report, as detailed in the footnotes below the table.
Current
Year
Fixed
remuneration 1
Other
remuneration 2
STVR
awarded 3
Sub-total
Previous year awards
that vested during the year
Total
remuneration 6
Deferred
STVR
vested 4
LTVR
vested 5
a
b
c
d=a+b+c
e
f
g=d+e+f
H M Lofthouse
Managing Director
& CEO
2024
2,000,000
4,004
850,000
2,854,004
173,687
—
3,027,691
2023
1,909,615
3,927
400,000
2,313,542
—
—
2,313,542
A L Tobin
Chief Financial Officer
2024
850,000
4,191
336,375
1,190,566
—
—
1,190,566
2023
649,652
3,403
235,134
888,189
—
—
888,189
H J Treleaven
Chief Risk Officer
2024
1,100,000
3,967
185,000
1,288,967
120,268
—
1,409,235
2023
1,100,000
5,047
100,000
1,205,047
215,501
—
1,420,548
C Triance 7
Group Executive,
Securities & Payments
2024
751,923
78,732
303,257
1,133,912
—
—
1,133,912
D C Yip
Group Executive,
Markets
2024
900,000
3,307
315,000
1,218,307
—
—
1,218,307
2023
276,923
958
102,132
380,013
—
—
380,013
Total
2024
5,601,923
94,201
1,989,632
7,685,756
293,955
—
7,979,711
2023
3,936,190
13,335
837,266
4,786,791
215,501
—
5,002,292
1. Base salary, superannuation, non-monetary benefits and benefits that have been salary sacrificed including car parking (and associated fringe benefits tax).
2. Salary continuance insurance for all Executive KMP and relocation allowance for Clive Triance.
3. The portion of STVR awarded for the current financial year in cash. The remaining portion of STVR in respect of FY24 but deferred for one and two 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. In FY24, Helen Lofthouse had deferred STVR vest to the value of $178,023. This value is not shown in table 3.1 as it
relates to her role performed prior to becoming a KMP.
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. No LTVR vested for current Executive KMP during the financial year.
6. The drivers of total remuneration changes between 2023 and 2024 were primarily due to:
› The difference in the Group factor for the STVR pool, being 50% in 2023 and 100% in 2024.
› For the first time in 2024, Helen Lofthouse had deferred STVR that vested which were issued in relation to her role as a KMP.
› Andrew Tobin and Darren Yip served for a full financial year in 2024, compared to part of a financial year in 2023.
7. Clive Triance commenced as KMP on 14 August 2023 and his 2024 remuneration reflects his partial year of employment.
55
ASX
Remuneration report
3. Snapshot of FY24 Group performance and reward continued
3.2 FY24 Group performance
FY24 was the first year of ASX’s five year strategy. This strategy represents a clear path to deliver the ‘new era ASX’. The primary performance
measures outlined below were selected for FY24 because they provide the critical activities to deliver year one of the strategy. The new ASX
Scorecard focuses all employees on achieving these critical activities.
FY23
Reset and realign
> Board renewal
> Renewed leadership team
> Uplift of governance
> Developed five year strategy
> Evolved the executive reward
framework
FY25-FY28
Delivering the ‘new era ASX’
> Sustainable, secure and resilient
technology
> Product evolution driven through
continued stakeholder engagement
> Efficient operations through continued
cost discipline, strategic procurement
and workforce optimisation
New FY24 measures
Rationale
FY28 strategic measures
> Underlying ROE
> Critical success measure of ASX’s strategy
> Underlying ROE
> 100% of regulatory deliverables delivered
within timeframes agreed with our
regulators
> Restoring the confidence of our regulators is
a key FY24 strategic priority for ASX. Uplifting
our operational capability and responding to
our regulatory commitments within agreed
timeframes is critical to achieve this
> Maturity of key business frameworks
> Complete customer and market quality
uplift program phase 1
> Improving the attractiveness of ASX for market
participants and our customers’ experience
creates a vibrant, diverse and robust market
> Market quality measures
> Customer satisfaction
> Reputation
> Strategic execution: FY24 strategic priorities
delivered in line with the five year
strategic plan
> Measurement of progress in realising
ASX’s five year strategy
> Revenue generated from new initiatives
> Additional value delivered to customers
through data products and services
> Defined scope for CHESS Replacement
and consultation on implementation
with the market successfully completed
for Release 1 (Clearing). Consultation on
Release 2 commenced
> Indicates progress to plan against one of
ASX’s key projects for the market in FY24
> Delivery of new trading, clearing and
settlement platforms
> Deliver Phase 1 of program to create an
accountable culture inspiring growth
> The Phase 1 focus is to uplift the accountability for
performance through new planning, execution,
monitoring and performance frameworks
> Employee engagement
> Leadership index
New FY24 measures for the ASX Scorecard aligned to our long term strategy
OUR VISION: ASX is in a new era. We are the market’s choice, inspiring confidence and trust
FY24
New era capability
> Technology modernisation and capability uplift
> Regulatory commitments
> Business efficiency:
–Targeted restructure
–Equity portfolio review
–New business planning framework for effective
assessment and heightened board oversight
–Sharpened accountability for performance
For a summary of the Group’s performance, refer to the ASX Scorecard summary in section 3.2.
1. Pay mix is calculated based on the maximum potential variable remuneration.
Reinforced through changes to the executive reward framework
Sharpened focus on accountability through
the Short Term Variable Reward Plan:
> Clearly articulated targets and transparent
measurement of outcomes
> Scorecard weighting introduced, with weightings
reflecting the priority outcomes for the relevant year
of the strategy and reviewed annually
Increased weighting on long term financial success
through changes to the long term variable reward plan:
> Introduced LTVR to all members of the
Executive Team to improve alignment
with long term financial performance
> Reduced weighting on the STVR
> Return on equity measure introduced as a key
indicator of success of the five year strategy
> Overall weighting of financial and non-financial
measures balanced across STVR and LTVR
Avg. Executive KMP 1
Short term variable reward
Long term variable reward
Non-financial 48%
Operational
16%
People
16%
Market &
stakeholders
16%
Shareholder
16%
ROE
18%
TSR
18%
Financial 52%
CEO 1
Non-financial 42%
Financial 58%
ROE
22%
TSR
22%
Shareholder
14%
Operational
14%
People
14%
Market &
stakeholders
14%
ASX Annual Report 2024 | Remuneration report
56
3. Snapshot of FY24 Group performance and reward continued
3.2 FY24 Group performance continued
The following table summarises the Group’s FY24 performance. The Board evaluated ASX’s performance against the primary performance measures
to determine the Group factor that creates the STVR pool for all employees (including Executive KMP, but excluding the CEO). The targets were
set to be robust and appropriately demanding, taking into account the key deliverables and milestones outlined in our five year strategy or planned
financial outcomes in ASX’s budget for FY24. The Board believes that the achievement of these targets represents the creation of significant value
for our shareholders.
Theme
(On target % STVR)
ASX Scorecard targets
Outcome
Result
Outcome
(% of STVR)
Shareholder
(25%)
Delivering long term sustainable shareholder value is at the heart of our five year strategy. In FY24, this means running high
quality businesses effectively and containing expense growth while delivering on our strategic outcomes.
> Underlying ROE meets budget
13%, marginally below budget
Not met
Met
Exceeded
24%
> Expenses growth met budget
14.7%, in line with budget
Not met
Met
Exceeded
> Capital expenditure in line
with budget
$136.3m, in line with budget
Not met
Met
Exceeded
Market and
stakeholders
(25%)
Our licences are fundamental to our business. Ensuring we respond to all of our regulatory commitments within agreed
timeframes is important in maintaining these critical assets. Working effectively with our customers and improving market
quality delivers value for our customers and ultimately our shareholders.
> 100% of regulatory deliverables
submitted within timeframes
agreed with regulators
100% of regulatory deliverables
submitted to plan
Not met
Met
Exceeded
27%
> Complete customer and market
quality uplift program phase 1
Revised market quality metrics defined
and baselined, supporting enhanced
market and strategic decisions and
customer engagement
Operational
(25%)
FY24’s primary focus is on Great Fundamentals, to build confidence and lay the foundations for future growth. Delivering on
our strategic outcomes while improving our resilience and risk capability are our primary FY24 operational priorities.
> Reduced operational risk
and uplifted risk
management capability
Outcomes include:
> Technology risk remediation executed
to plan
> Uplifted risk culture score by 3% (target 5%)
> Exceeded stretch operational incident
reduction target
> 100% uptime of all key systems
(target >99.95%)
Not met
Met
Exceeded
28%
> Strategic execution: FY24
strategic priorities delivered
in line with the five year
strategic plan
Outcomes delivered to target level with
additional stretch outcomes also delivered
> Defined scope for CHESS
Replacement and consultation
on implementation with the
market successfully completed
for Phase 1 (Clearing).
Consultation on Phase 2
(Settlement) scope commenced
CHESS Replacement solution defined and
Phase 1 and Phase 2 milestones met
People
(25%)
We will deliver our five year strategy by harnessing engaged, accountable and capable people with diverse thinking.
> Increase employee engagement
score (+4% to 67%)
Employee engagement remained steady
at 63%
Not met
Met
Exceeded
21%
> Increase women in leadership
roles (manager and above)
to 38.5%
Women in leadership 36.5%, a decrease
of 0.4%
> Phase 1 of program to create an
accountable culture inspiring
growth delivered
Phase 1 delivered. +4% increase in employee
alignment to strategy, in the top quartile of
Australian financial services companies
Board
discretion
The Board determined that no adjustment was required to the Group factor or individual STVR outcomes for
Executive KMP. The Board considered: the overall performance of the Group in successfully delivering year one of the
five year strategy; the record operating revenue; the significant expense growth driven by investments in technology
modernisation and capability uplift, and the management of material risk issues across the Group in FY24 as known
at the time of the release of this report.
No
adjustment
Group
reward pool
Sets the available pool as a percentage of target for STVR outcomes.
100%
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3. Snapshot of FY24 Group performance and reward continued
3.3 FY24 Executive KMP short term variable reward outcomes
The STVR for Executive KMP 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, Executive KMP may typically receive an STVR award around their target opportunity where they have achieved
their outcomes. Outcomes are drawn from the ASX Scorecard and cascaded to each Executive KMP within their Divisional Scorecard. The ASX
values and risk management are also explicitly considered when evaluating an Executive KMP’s performance, as they guide the way Executive KMP
behave in achieving their outcomes and how they manage risk. The table below sets out the STVR outcomes for FY24.
% of target
Cash payable
August 2024
$
STVR deferred for
1 year (vesting
August 2025) 3
$
STVR deferred for
2 years (vesting
August 2026) 3
$
Total STVR awarded 1,2
% of max
$
Current
H M Lofthouse
100%
67%
1,700,000
850,000
425,000
425,000
A L Tobin
115%
77%
672,750
336,375
168,188
168,187
H J Treleaven
100%
67%
370,000
185,000
92,500
92,500
C Triance
110%
73%
606,514
303,257
151,629
151,628
D C Yip
90%
60%
630,000
315,000
157,500
157,500
1. Total STVR award including cash payment and deferred component.
2. The STVR forfeited is determined by subtracting the ‘total STVR awarded: % of max’ from 100%. The average STVR forfeited by Executive KMP in FY24 was 31% of the maximum potential STVR
(compared to 60% of the maximum potential STVR in FY23).
3. The deferred STVR awards are subject to continued employment over the deferral period.
1. Represents operating revenue as defined in Note B1. Segment Reporting in the financial statements.
2. The share price at the start of FY20 was $83.64
3.4 Long term performance
Through the continued execution of our strategy, we are working towards the ongoing delivery of attractive returns to shareholders over time.
The following charts illustrate the long term performance of the Group against key financial metrics.
Underlying earnings per share (cents) and
underlying return on equity (%)
Underlying ROE
Underlying EPS
FY21
FY20
FY22
FY23
FY24
265.4
248.4
262.7
253.7
244.8
14.0%
13.1%
13.7%
13.4%
13.0%
101.2
106.8
60.00
116.2
112.1
63.00
116.4
120.0
81.71
112.4
111.2
77.71
116.4
122.5
85.38
Dividends per share (cents) and
ASX share price (dollars) 2
Final
Interim
ASX share price ($ at the end of the financial year)
FY21
FY20
FY22
FY23
FY24
Operating revenue 1
($ million)
FY21
FY20
FY22
FY23
FY24
951.5
938.4
1,022.7
1,010.2
1,034.3
Underlying net profit after tax
($ million)
513.8
480.9
508.5
491.1
474.2
FY21
FY20
FY22
FY23
FY24
ASX Annual Report 2024 | Remuneration report
58
3. Snapshot of FY24 Group performance and reward continued
3.4 Long term performance continued
ASX’s long term performance and its impact on executive reward
ASX’s remuneration framework focuses Executive KMP on attaining long term, sustainable performance. This is achieved by connecting our
Executive KMP to the experience of shareholders through equity-based deferral of their STVR and through the LTVR. In 2023, ASX updated its LTVR
award, including broadening the eligibility to all members of the Executive Team and changing the performance measures. The LTVR rewards the
achievement of challenging performance hurdles of:
> 2022 award to the CEO: 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.
> 2023 award to the CEO and Executive Team: underlying average ROE and ASX’s relative TSR compared to other ASX 100 companies. Both
performance measures are assessed over four years.
In FY24, no LTVR awards were tested. The LTVR award granted in 2019 to the former CEO and Deputy CEO was scheduled to be tested, however
in 2022 the Board exercised discretion to cancel all outstanding LTVR awards issued between 2018 to 2021 to the former CEO (Dominic Stevens)
and former Deputy CEO (Peter Hiom), due to the status of the CHESS Replacement project.
3.5 Adjustments to remuneration outcomes
ASX’s risk assessment processes and remuneration framework are designed to drive accountability for managing risks, behaviours that assist the
Group to respond to new and emerging risks and better support our customers.
Each year the Board undertake a comprehensive, bottom-up process is run to ensure that all relevant events are surfaced and considered
appropriately, taking into account a wide variety of information sources. This considers material risk outcomes, employee conduct and compliance
obligations. Further details are outlined in sections 5.3 and 5.4 of this Remuneration Report.
In assessing remuneration outcomes for 2024, the Board considered whether there were any further matters that required adjustment under the
Remuneration Adjustment Policy. The Board determined that there were no known issues at the date of the report that required the application of
the Remuneration Adjustments Policy, beyond the adjustments already applied with respect to the CHESS Replacement project in prior years, as
outlined in section 2.2 of the 2023 Remuneration Report.
The Board continues to monitor risk management issues and assess the appropriateness of deferred remuneration and will adjust remuneration
outcomes accordingly where this becomes known.
4. Executive remuneration framework in detail
4.1 Executive remuneration components
The total remuneration for Executive KMP 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 relevant to ASX’s functions, such as banking, finance, legal and
technology, or to the broader market.
4.2 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. Fixed remuneration is set considering the mix of fixed remuneration and variable
remuneration appropriate for the role.
4.3 Short term variable reward
The considerations in determining the STVR outcomes for Executive KMP are illustrated in the following diagram.
Target
STVR in $
Individual
performance rating
Behaviours &
accountabilities
Final
STVR outcome
On-target STVR
as a % of total reward
Individual goals linked to ASX
strategy determine the individual
performance outcome and range
of STVR outcomes
Initial STVR outcomes are
modified by the assessment
of behaviours and the discharge
of accountabilities.
STVR is paid at Board discretion.
Awarded in cash, with a portion
deferred in equity
Group incentive pool %
Determines the available pool based on Group performance
All variable remuneration is subject to the Board’s ongoing discretion to apply in-year adjustments or malus,
based on the application of ASX’s Consequence Management Framework (refer to section 5.3).
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4. Executive remuneration framework in detail continued
4.3 Short term variable reward continued
The following table outlines the key elements of the FY24 STVR Plan.
Purpose
Encourage the achievement of financial and non-financial outcomes that support the Group’s strategy.
Reflect the appropriate management of risk.
Deferral periods extend the reward time frame to consider the risks being managed.
Reflects behaviours to ensure employees act in accordance with ASX’s values.
Performance
Group performance
> The target STVR pool for Executive
KMP 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, based on the CEO scorecard.
Individual performance
> An Executive KMP’s performance is measured through the achievement of
outcomes which are cascaded from the ASX Scorecard and supplemented
with strategic outcomes from their division in their Divisional Scorecard.
> An Executive KMP’s performance rating determines what percentage
of individual STVR targets are received. The range is 0% to 150%.
> An Executive KMP’s behaviours and steps taken to manage the
accountabilities of their role are reviewed and may modify the initial
STVR outcome.
Evaluation
and approval
> To determine the Group reward
pool, the CEO presents the
Board with an assessment of the
Group’s performance based on the
achievement of outcomes outlined
in the ASX Scorecard and the
management of risk.
> The Board then incorporates
feedback from the CRO and
other relevant control functions to
determine the Group reward pool.
For Executive KMP:
> The CRO makes an assessment of risk management and steps taken to
manage accountabilities for all Executive KMP, incorporating feedback from
other control functions. The CRO subsequently provides this assessment
directly to the People and Culture Committee.
> The CEO recommends to the People and Culture Committee the individual
performance ratings and the percentage of STVR target to be applied for
Executive KMP, considering feedback from the CRO, the Audit and Risk
Committee, Technology Committee and Clearing and Settlement Boards
where appropriate.
> The People and Culture Committee considers the CEO’s recommendations
and then makes final recommendations to the Board for approval.
For the CEO:
> The ASX Chair provides performance and STVR recommendations to
the People and Culture Committee, considering feedback from the CRO
and Clearing and Settlement Boards.
> The People and Culture Committee considers the ASX Chair
recommendations and then makes final recommendations to the
Board for approval.
Instrument
50% of the STVR is delivered in cash, with 50% deferred into restricted ordinary shares. Awards are usually granted
within three weeks of full year results being released. Half of the deferred portion vests after one year of ongoing
employment, with the remainder vesting after two years of ongoing employment. Restricted shares hold the same rights
as ordinary shares, including voting and receipt of dividends.
Treatment upon
departure
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 determined by the Board. If the participant’s employment is terminated for a qualifying reason, then
subject to the Board exercising its rights under the Remuneration Adjustments Policy, shares will remain on foot as
though the participant had not ceased employment, and the restrictions will be lifted on the original vesting dates.
ASX Annual Report 2024 | Remuneration report
60
4. Executive remuneration framework in detail continued
4.4 Long term variable reward
Key features of the LTVR Plan in operation in FY24 are summarised below.
Purpose
Rewards performance that creates long term value for shareholders. The combination of relative TSR and underlying ROE
hurdles provides balance to the Plan by measuring performance on both a relative and absolute basis.
Relative: rewards participating Executive KMP for Group performance that exceeds that of peer companies.
Absolute: rewards investment and resource allocation decisions that meet appropriate return objectives. Underlying ROE
is a key metric in measuring the achievement of ASX’s five year strategy.
Eligibility
The LTVR Plan rewards the achievement of Group financial results and is awarded to the Executive Team.
The face value of the maximum potential LTVR award for the CEO and Executive Team is outlined in section 6.4.
Performance
measures
Relative performance measure:
Relative TSR (50%).
Absolute performance measure:
Underlying ROE (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. 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.
Underlying ROE is calculated by dividing the underlying
net profit attributable to ASX (statutory NPAT adjusted
for the after-tax effect of any significant items) by the
average equity over the period.
Underlying ROE is used rather than statutory ROE as
underlying net profit after tax is used to determine ASX’s
dividends. This aligns remuneration outcomes for the
Executive Team with shareholder outcomes.
Vesting
schedule
Performance
Vesting
Less than 51st percentile
0%
51st percentile
25%
From 51st to 76th percentile
25% – 100% straight line
pro-rata vesting
At or above 76th percentile
100%
Average underlying ROE p.a.
Vesting
Less than 13.0%
0%
13.0%
20%
From 13.0% to 14.5%
20% – 100% straight line
pro-rata vesting
At or above 14.5%
100%
Calculation
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 is measured by averaging the underlying
ROE over each of the four financial years in the
performance period, using FY24 as the base year and
FY27 as the end year.
The underlying ROE target will be reviewed annually and
will consider Board-approved capital management plans
outlining any share issues/buybacks, gearing introduced
to the capital structure and dividend payout and
reinvestment policies.
The Board will review the underlying ROE outcome and
any associated vesting to ensure reward outcomes are
appropriate, including assessing earnings quality and the
impact of any significant items.
Performance
period
Four years (20 October 2023 – 19 October 2027)
Instrument
Performance rights over ASX ordinary shares. Performance rights are issued for no consideration, and no amount is
payable upon the vesting of performance rights. Performance rights do not carry voting entitlements. 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.
Determining
the number of
performance rights
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).
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4. Executive remuneration framework in detail continued
4.4 Long term variable reward continued
Expiry
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
Dividends are not paid on performance rights.
Dividend
equivalent
payments
An additional amount of shares or cash may be allocated to an equivalent value to the dividends paid by the
company over the performance period on shares that vest, assuming the dividends were reinvested on the ex-
dividend date. This approach aligns the interests of management with those of shareholders, as it reflects the
importance of dividends to ASX’s shareholders within the reward framework. LTVR participants will not receive any
franking credits or value in lieu of franking credits.
Retesting
No
Treatment
upon departure
If an Executive KMP 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 KMP's employment is terminated for cause, poor performance, or if the Executive KMP resigns.
4.5 Executive remuneration mix
All Executive KMP receive fixed remuneration, STVR and LTVR. For all Executive KMP, a significant portion of their potential remuneration is deferred
up to four years from the end of the current performance year.
The chart below sets out the current maximum remuneration structure and mix for the CEO.
Chief Executive Officer
1 year deferred equity (25%)
Year 1
Year 2
Year 3
Year 4
Fixed pay
31%
Max STVR
38%
Max LTVR
31%
Cash
Cash
(50%)
Relative TSR (50% of award)
Underlying ROE (50% of award)
2 year deferred equity (25%)
The chart below sets out the current maximum remuneration structure and mix for Executive KMP other than the CEO. These Executive KMP
comprise the CFO, CRO, GE Securities and Payments, and GE Markets.
Fixed pay 35%-55%
Max STVR 28% - 40%
Max LTVR 17% - 24%
Cash
Cash (50%)
Executive KMP
Year 1
Year 2
Year 3
Year 4
1 year deferred equity (25%)
Relative TSR (50% of award)
Underlying ROE (50% of award)
2 year deferred equity (25%)
ASX Annual Report 2024 | Remuneration report
62
5. Remuneration governance
The diagram below provides an overview of governance arrangements relating to remuneration.
People and
Culture
Commitee
ASX Board
Shareholders
The CRO provides an independent assessment of
risk management and discharge of accountabilities
The Audit and Risk Committee advises the People
and Culture Committee on audit or risk matters
which may impact individual or collective outcomes
The Clearing and Settlement Boards advise the
People and Culture Committee on issues related
to clearing and settlement operations which may
impact individual or collective outcomes
External advisers provide
independent advice
The Technology Committee advises the People
and Culture Committee on issues related to ASX’s
technology strategy and operations which may
impact individual or collective outcomes
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 People and Culture 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 People and Culture Committee
The People and Culture Committee develops the remuneration principles, framework and policies for the Group. The People and Culture
Committee’s responsibilities include the following:
Recommend to the Board:
> remuneration arrangements and all reward outcomes for the Executive Team
> performance against outcomes and targets for each Executive Team member, incorporating an evaluation of risk management performance and
the appropriate discharge of the role’s accountabilities
> remuneration for Executive Team members, appointment 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 effectiveness of the remuneration policy in supporting ASX’s values while complying with regulatory requirements
> Executive Team and key staff succession plans
> progress against gender diversity objectives and the active promotion of a collaborative and inclusive culture
> capabilities required to deliver the organisation’s strategy.
5.3 Ensuring appropriate remuneration outcomes
The Board understands that, to make good remuneration decisions it needs both a robust framework and to proactively and consistently exercise
judgement. The Board takes into account information from a range of sources. This ensures that decisions are well-informed and consider the
outcomes achieved for the Group’s stakeholders. The Board has an established process to seek performance feedback from the Audit and
Risk Committee, Technology Committee and the Clearing and Settlement Boards, risk management feedback from the CRO and other control
functions. Using this information, the Board evaluates remuneration outcomes against an agreed set of remuneration principles and relevant
precedents. Executive KMP are not able to participate in discussions impacting their own remuneration. This promotes independence, objectivity,
fairness and consistency in the process of determining remuneration outcomes.
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5. Remuneration governance continued
5.3 Ensuring appropriate remuneration outcomes continued
For all employees, the consideration of material risk outcomes
is a key process that forms part of ASX’s broader Consequence
Management Framework, and a comprehensive bottom-up process
is run to ensure that all relevant events are surfaced and considered
appropriately. Key steps include:
> Policy breaches and conduct breaches are reported in ASX’s
Enterprise Risk, Internal Audit and Compliance Application.
> The Conduct Review Group reviews these issues and investigates
further, as required. The Conduct Review Group provides
recommendations regarding accountability and consequences.
For serious breaches, matters are referred to the People and
Culture Committee.
> The People and Culture Committee determines the risk impact
and recommends the appropriate consequence to the Board
for approval.
In addition, an accountability framework applies to all ASX’s
Accountable Persons, comprising the Executive Team and
the General Manager, Internal Audit. The framework ensures
Accountable Persons are rewarded for delivering sustainable
outcomes, and that there are consequences where conduct
does not meet the expectations of the role. The Board
considers accountabilities in the following two ways.
Accountabilities are managed to an appropriately high standard
Each Accountable Person is assessed against their agreed
accountabilities and the steps taken to manage these. Timely and
regular assessment reduces the risk of a material adverse outcome
occurring. This assessment is built into the annual performance
and reward cycle. To support a positive risk culture, employees are
rewarded for role modelling positive behaviours, and remuneration
is adjusted downwards where expectations have not been met.
Remuneration consequences are applied where there is a
material adverse outcome
In the event of a material adverse outcome, the accountability
framework assists the Board in determining appropriate remuneration
outcomes. The framework guides decision-making by considering
who was accountable, the impact the event had on the organisation
and its stakeholders, and what steps the Accountable Person may
have taken to mitigate this outcome. A detailed framework supports
this assessment so that remuneration adjustments are proportionate,
consistent and appropriate. Where an adjustment to variable
remuneration is required, this may be made to that year’s STVR,
or made to deferred remuneration previously awarded.
5.4 Remuneration Adjustments Policy
The Board retains the discretion to adjust performance-based
remuneration that has not yet been realised or vested without
restrictions (malus), for any employee or group of employees if it
considers that such remuneration would be an inappropriate benefit.
The Board has absolute discretion to determine what constitutes
an inappropriate benefit. Examples may include:
> mismanagement of material risk issues for the Group
> fraudulent or dishonest behaviour, or acting in a manner that
brings ASX into disrepute
> a material misstatement or omission in ASX’s financial statements;
> a breach of obligations to ASX
> 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 People and Culture
Committee may seek professional assistance from remuneration
advisers. Remuneration advisers are engaged by the Committee
independently of management. In FY24, the People and Culture
Committee did not engage any remuneration advisors to provide
remuneration recommendations as defined by the
Corporations Act 2001.
5.6 Engagement with external stakeholders
Each year, the ASX Chair meets with major investors and proxy
advisers. These meetings provide an opportunity to discuss
remuneration practices and policies, and any issues raised by
an investor or proxy adviser.
5.7 Share ownership
Share ownership is encouraged among Executive KMP and non-
executive directors to strengthen the alignment between their interests
and the interests of shareholders. Executive KMP are expected to hold
a number of ASX shares equivalent in value to their fixed remuneration.
Executive KMP have five years to accumulate the shares, as outlined in
the following table:
Role
Value of shareholding
(% of fixed remuneration)
CEO
100%
CRO
50%
Other Executive KMP
100%
All Executive KMP, who have held that role at ASX for at least five years,
currently hold a number of shares at or in excess of this level.
To underscore the alignment of the ASX Board with shareholders’
interests, the ASX Board has adopted a non-executive director
shareholding guideline. This requires that, within three years
of appointment:
> ASX non-executive directors establish and maintain a level
of ASX share ownership calculated by reference to the annual
non-executive director fee at the time of their appointment,
exclusive of superannuation.
> The ASX Board Chair, in addition to the above, must also
establish and maintain a level of share ownership based on the
supplemental Chair fee at the date of their appointment as Chair,
exclusive of superannuation.
All non-executive directors, with at least three years’ service,
currently hold a number of shares at or in excess of this level.
ASX Annual Report 2024 | Remuneration report
64
6. Statutory remuneration disclosure – Executive KMP
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 total awarded 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.
Year
Short term
Termination benefits 5
Long term
Share-based payments
Total
Performance-related 11
Salary 1
STVR 2
Non-monetary 3
Other 4
Long service leave accrual 6
Superannuation 7
STVR Plan 8
LTVR Plan 9
Other share-based payments 10
Current
H M Lofthouse 12
Managing Director
& CEO
2024
1,972,601
850,000
4,004
30,425
—
75,119
27,399
765,527
117,410
969 3,843,454
45%
2023
1,884,323
400,000
—
(18,858)
—
105,144
25,292
558,360
127,136
—
3,081,397
35%
A L Tobin 13
Chief Financial Officer
2024
822,601
336,375
4,191
3,195
—
384
27,399
238,884
37,013
969
1,471,011
42%
2023
626,297
235,134
—
33,690
—
974
23,355
82,273
—
—
1,001,723
32%
H J Treleaven
Chief Risk Officer
2024
1,051,623
185,000
24,945
(90,683)
—
27,269
27,399
201,683
23,266
969
1,451,471
28%
2023
1,054,262
100,000
20,446
(19,830)
—
15,907
25,292
173,600
—
—
1,369,677
20%
C Triance 14
Group Executive,
Securities & Payments
2024
751,923
303,257
3,262
83,956
—
1,150
—
120,173
38,772
—
1,302,493
35%
D C Yip 13
Group Executive,
Markets
2024
872,601
315,000
3,307
55
—
127
27,399
181,755
44,059
969
1,445,272
37%
2023
267,311
102,132
—
21,181
—
409
9,612
16,835
—
—
417,480
28%
Former
D J Stevens 15
Managing Director
& CEO
2023
150,430
—
1,470
12,640
329,118
116,152
8,269
172,025
48,234
—
838,338
26%
T J Hogben 15
Group Executive,
Securities & Payments
2023
799,332
65,916
—
15,482
—
31,001
24,514
367,650
—
—
1,303,895
33%
G L Larkins 15
Chief Financial Officer
2023
156,240
—
—
12,271 345,182
(14,079)
6,323
154,221
—
—
660,158
23%
Total
2024
5,471,349 1,989,632
39,709
26,948
—
104,049
109,596 1,508,022
260,520
3,876
9,513,701
40%
2023
4,938,195
903,182
21,916
56,576 674,300 255,508
122,657 1,524,964
175,370
— 8,672,668
30%
1.
Base salary excluding payments made under the compulsory superannuation guarantee.
2. The cash component of the STVR earned, paid in August each year following assessment of the previous years performance.
3. Salary-sacrificed items paid over the year including car parking (and associated fringe benefits tax) and salary continuance insurance provided by the Group.
4. Movement of annual leave accrued over the year and relocation allowance for Clive Triance.
5. Termination benefits consist of a payment for Dominic Stevens and Gillian Larkins in lieu of notice, applicable under their employment contracts.
6. Movement in long service leave accrued over the year. The long service leave accrual is negative for Gillian Larkins as she was not entitled to a long service leave payment upon termination.
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 deemed to not vest in future. The LTVR may be either equity or cash settled as determined by the Board.
10. Participation in the Employee Share Gift Plan provided to all ASX employees.
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. Helen Lofthouse commenced in the role of CEO on 1 August 2022 and the increase in remuneration between 2023 and 2024 reflects that her 2023 role was pro-rated between the CEO role
and her former Group Executive, Markets role.
13. Andrew Tobin and Darren Yip commenced part way through FY23. Their remuneration in FY24 reflects their first full year in role and therefore represents an increase over 2023.
14. Clive Triance commenced in role on 14 August 2023. There is no prior year comparable for Mr Triance.
15. Dominic Stevens, Timothy Hogben and Gillian Larkins ceased as KMP in the 2023 financial year. The deferred STVR and LTVR expense recognised reflects the accelerated accounting charge of
the fair value of the equities awarded, up to the date that they ceased as KMP. Mr Stevens’ LTVR was subsequently cancelled by the Board in 2022. Under the accounting standards the expense
recognised for the LTVR cannot be reversed on cancellation. The cancellation of the FY22 deferred STVR awards for Mr Hogben occurred subsequent to his ceasing as KMP and is not reflected
in this table.
65
ASX
Remuneration report
6. Statutory remuneration disclosure – Executive KMP continued
6.2 FY24 Executive KMP shareholdings
The following table shows the movement in Executive KMPs’ ASX shareholdings during the financial year. Shares relating to grants of performance
rights that have vested are allocated from a trust established to hold shares for this purpose.
Held at
1 July 2023
Allocated
under deferred
STVR Plan 1
Other
changes 2
Cancelled/
lapsed during
the year
Held at
30 June 2024 3
Vested
during the year
Deferred
STVR subject to
restrictions as at
30 June 2024
Current
H M Lofthouse
38,986
10,434
17
—
49,437
5,840
23,276
A L Tobin
—
6,134
17
—
6,151
—
6,134
H J Treleaven
12,649
2,609
17
—
15,275
1,997
6,935
C Triance 4
—
—
—
—
—
—
—
D C Yip
—
2,664
17
—
2,681
—
2,664
1. Deferred STVR for FY23 performance year, allocated in August 2024.
2. Annual grant under the Employee Share Gift Plan, granted 30 August 2023.
3. No shares were held nominally as at 30 June 2024.
4. Opening balance reflects shares held as at commencement date 14 August 2023.
6.3 FY24 Executive KMP LTVR allocations
The following table shows the movement during the financial year in the number of performance-related rights issued over ordinary shares in ASX
held directly, indirectly or beneficially by the Executive KMP, including their personally related parties.
Held as at
1 July 2023
Granted as
compensation
during the year 1
Vested
during the year
Cancelled/lapsed
during the year
Held at
30 June 2024 2
Current
H M Lofthouse
13,821
35,016
—
—
48,837
A L Tobin
—
9,192
—
—
9,192
H J Treleaven
—
5,778
—
—
5,778
C Triance 3
—
9,629
—
—
9,629
D C Yip
—
10,942
—
—
10,942
1. Performance rights were pursuant to shareholder approval obtained under ASX Listing Rule 10.14 at ASX Limited’s Annual General Meeting on 19 October 2023. The 2024 award will be granted
subject to shareholder approval at the 2024 Annual General Meeting.
2. There were no rights vested and exercisable or vested and unexercisable at the end of the financial year.
3. Opening balance reflects performance rights held as at commencement date 14 August 2023.
No other Executive KMP had performance-related rights over issued ordinary shares in ASX directly, indirectly or beneficially.
6.4 Outstanding STVR and LTVR grants for Executive KMP
The following table sets out a summary of the STVR and LTVR grants that were on-foot during FY24. The minimum value of all awards is zero.
The maximum possible total value of an award for the participant is calculated by multiplying the prevailing market price of ASX shares at the date
of vesting by the number of shares held by or allocated to the participant.
Award
Type
Grant date
Performance
period start date
Vesting date 1
Fair value 2
Maximum value
of grants yet to
be expensed 3
LTVR 2023 – ROE
Performance rights
19/10/2023
20/10/2023
19/10/2027
55.71
519,448
LTVR 2023 – TSR
Performance rights
19/10/2023
20/10/2023
19/10/2027
28.44
828,683
LTVR 2022 – EPS 4
Performance rights
28/9/2022
29/9/2022
28/9/2026
63.86
—
LTVR 2022 – TSR
Performance rights
28/9/2022
29/9/2022
28/9/2026
34.25
133,135
DSTVR FY23 Tranche 1
Restricted shares
30/08/2023
1/07/2022
15/08/2025
58.13
220,069
DSTVR FY23 Tranche 2
Restricted shares
30/08/2023
1/07/2022
20/08/2027
58.13
387,489
DSTVR FY22 Tranche 2
Restricted shares
1/9/2022
1/07/2021
14/8/2026
78.30
151,800
DSTVR FY21 Tranche 2
Restricted shares
30/8/2021
1/07/2020
15/8/2025
87.72
64,800
1. Vesting date for deferred STVR is the business day after the release of the ASX’s annual results in the relevant year. The vesting date provided for future years is indicative.
2. The fair value for the deferred STVR is calculated based on the closing price at the date the offer closes for the relevant year.
3. Represents the remaining amount of STVR and LTVR to be amortised over the remaining life of the plan.
4. The maximum value of the LTVR 2022 – EPS award is nil, based on the assessment that this award will not meet the minimum performance required to vest in the future.
ASX Annual Report 2024 | Remuneration report
66
6. Statutory remuneration disclosure – Executive KMP continued
6.5 Current Executive KMP service agreements
The following table sets out the minimum notice period (in months) for current Executive KMP contracts.
Name
Position held
Contract effective date 1
Executive
KMP initiated
ASX
initiated
Poor
performance
H M Lofthouse
CEO
1 August 2022
6
12
3 2
A L Tobin
Chief Financial Officer
5 September 2022
6
12
3 2
H J Treleaven
Chief Risk Officer
1 March 2017
6
12
1 2
C Triance
GE Securities and Payments
14 August 2023
6
12
3 2
D C Yip
GE Markets
13 March 2023
6
12
3 2
1. All Executive KMP have permanent ongoing contracts. Amounts payable on termination include the contractual notice period and any rewards that may be payable under the terms of the
STVR and LTVR Plans, which are outlined in sections 4.3 and 4.4.
2. The notice period for termination for poor performance requires an initial written notice of three months for all KMP except Mr Treleaven, for whom one month’s written notice is required.
6.6 Loans and other transactions
No transactions or loans involving non-executive directors or Executive KMP, their close family members or entities they control or have significant
influence over, were made during the year (FY23: 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 People and Culture
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
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 Chair 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 for FY24 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 $3.5 million. This was approved by shareholders at the 2022 AGM. The amount paid in FY24 was $2.6 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.
7.2 Non-executive director fee schedule
The following table summarises the fees received for each role on the Board.
Board/Committee
Role
2024
$
2023
$
Board 1
Chair
550,000
550,000
Member
235,000
235,000
Audit and Risk Committee
Chair
45,000
45,000
People and Culture Committee
Chair
45,000
45,000
Technology Committee
Chair
45,000
45,000
1. ASX Limited Board fees include payment for membership of ASX Limited Board committees and Clearing and Settlement Boards.
67
ASX
Remuneration report
7. Non-executive director remuneration arrangements continued
7.3 Director fees for FY23 and FY24
The following table sets out the statutory remuneration details for non-executive directors for FY23 and FY24.
Year
Short term
salary and fees
Post-employment
superannuation
Total
Current
D Roche
2024
550,000
27,399
577,399
2023
550,000
25,292
575,292
Y A Allen
2024
235,000
25,850
260,850
2023
235,000
24,675
259,675
W S Byres 1
2024
36,154
3,977
40,131
V A Carter 2
2024
235,000
25,850
260,850
2023
96,712
10,155
106,867
M B Conrad
2024
280,000
27,399
307,399
2023
266,500
25,138
291,638
D T Curran
2024
280,000
27,399
307,399
2023
280,000
25,292
305,292
P S Nash
2024
280,000
27,399
307,399
2023
280,000
25,292
305,292
L A Randell 2
2024
235,000
25,850
260,850
2023
58,750
6,169
64,919
H J Smith
2024
235,000
25,850
260,850
2023
235,000
24,675
259,675
Former
K R Henry 3
2023
56,970
5,982
62,952
P R Marriott 4
2024
29,827
3,281
33,108
2023
235,000
24,675
259,675
H L Ridout 3
2023
160,827
15,778
176,605
R J Woods 3
2023
164,500
17,273
181,773
Total
2024
2,395,981
220,254
2,616,235
2023
2,619,259
230,396
2,849,655
1. Wayne Byres commenced on 6 May 2024 and his fees reflect the period from his commencement as a non-executive director.
2. Fees disclosed in 2023 for Vicki Carter and Luke Randell reflect the period from their commencement as a non-executive director.
3. Non-executive directors ceased during FY23 and the fees reflect the period up to the date they ceased as a non-executive director.
4. Peter Marriott ceased as a non-executive director on 16 August 2023 and his fees reflect the period up to the date he ceased as a non-executive director.
ASX Annual Report 2024 | Remuneration report
68
7. Non-executive director remuneration arrangements continued
7.4 Equity holdings
The table below sets out current equity holdings for non-executive directors.
Held as at
1 July 2023
Other
changes
Held as at
30 June 2024 1
Current
D Roche
14,000
16,456
30,456
Y A Allen
5,000
—
5,000
W S Byres 2
—
—
—
V A Carter
1,121
1,699
2,820
M B Conrad
5,000
—
5,000
D T Curran
1,800
1,753
3,553
P S Nash
3,000
—
3,000
L A Randell
—
3,600
3,600
H J Smith
2,000
1,807
3,807
Former
P R Marriott 3
5,316
—
5,316
1. No shares were held nominally as at 30 June 2024.
2. Wayne Byres opening balance is reported at 6 May 2024, being the date he commenced as a director.
3. The closing balance for Peter Marriott is reported as at the date he ceased as a director.
69
The directors present their report, which incorporates
by reference the Operating and Financial Review, the
Remuneration Report, and the Auditor's Independence
Declaration, for the year ended 30 June 2024 (FY24).
Report on the business
Principal activities and review of operations
The principal activities of the Group and any significant changes in the
nature of those activities during the financial year, as well as a review
of those operations, and the results of those operations are detailed
in the Operating and Financial Review on pages 8 to 21.
Dividends
Since the end of the financial year, the Board determined a final
dividend of 106.8 cents per share totalling $207.1 million. The
dividend will be fully franked based on tax paid of 30%, and has been
determined based on a payout ratio of 85% of underlying net profit
after tax, which is within the Board approved policy of a dividend
payout ratio of between 80% and 90% of underlying net profit after
tax. Information relating to dividends for the current and prior financial
year is disclosed in note B8 of the financial statements on page 91.
Significant changes in the state of affairs
There were no significant changes to the Group's state of affairs
during the year.
Events subsequent to balance date
Other than those disclosed in notes F5 and F7 of the Financial Report
and the dividend determination noted above, there have been no
material matters or circumstances that have arisen from the end of
the period to the date of this report which have significantly affected,
or may significantly affect in future financial years the operations of
the Group, or the results of those operations or the state of affairs
of the Group.
Likely developments
For further information about likely developments in the operations
of the Group in future financial years, refer to the Operating and
Financial Review on pages 8 to 21. The expected results from those
operations in future financial years have not been included because
they are likely to result in unreasonable prejudice to the Group, and
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.
Indemnification and insurance of officers
The Group has paid insurance premiums for directors’ and officers’
liability insurance 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. During
the financial year ASX has indemnified current and former directors
and officers of ASX for their legal costs in connection with the ASIC
investigation in relation to the CHESS Replacement project.
ASX
Directors’ report
Directors
The directors of ASX in office during the financial year and at
the date of this report were as follows. Unless otherwise stated,
all directors were in office during the whole of FY24.
> Damian Roche (Chair)
> Helen Lofthouse (Managing Director and CEO)
> Yasmin Allen AM
> Wayne Byres (appointed 6 May 2024)
> Vicki Carter
> Melinda Conrad
> David Curran
> Peter Marriott (retired 16 August 2023)
> Peter Nash
> Luke Randell
> Dr Heather Smith PSM FAIIA
Directors’ meetings and attendance at those meetings for FY24
(including meetings of committees of directors) are disclosed
on page 51. The qualifications and experience of directors,
including current and recent directorships, as well as their
special responsibilities, are detailed on pages 44 to 47.
Company secretaries
Current
Johanna O’Rourke
Group General Counsel and Company Secretary
BCom (UNSW), LLB (UNSW), LLM (NYU)
Appointed Company Secretary on 1 October 2022
Ms O’Rourke assumed the role of Group General Counsel and
Company Secretary on 1 October 2022. Ms O’Rourke joined ASX
in January 2021 as Deputy General Counsel and since joining ASX
has worked across ASX’s businesses and engaged closely with
ASX’s Board and committees as a lawyer and company secretary.
Prior to joining ASX, Ms O’Rourke was General Counsel –
Commercial and Technology at QBE Insurance Group. She has
20 years’ experience practising law in-house and in top tier law
firms in New York and Australia.
Timothy Swan
General Manager, Company Secretariat
BCom/LLB (Hons) (UNSW), GIA (Affiliated)
Appointed Company Secretary on 16 March 2023
Tim Swan, General Manager, Company Secretariat, is also a
Company Secretary, and was appointed on 16 March 2023. He is
responsible for managing the company secretariat function and
providing corporate governance support across the Group. Mr Swan
joined the ASX in September 2022 as Senior Legal Counsel and
Deputy Company Secretary.
Prior to joining ASX, Mr Swan worked for the Commonwealth Bank
of Australia. He also worked for the Qantas Group for over 10 years,
including two and half years at Qantas Superannuation Limited, in legal
and company secretarial roles. Mr Swan started his career in private
practice at a top tier Australian law firm.
ASX Annual Report 2024 | Directors’ report
70
Performance rights over issued shares
At the date of this report, there were 128,440 performance rights
in relation to fully paid ASX Limited ordinary shares outstanding
(2023: 13,821). For further details on the performance rights for
vesting, refer to note B5 in the financial report.
Otherwise, at the date of this report, there were no unissued shares or
interests under option. No options over unissued shares or unissued
interests in ASX have been granted during or since the end of the
financial year and no shares or interests were issued as a result of the
exercise of an option over unissued shares or interests during or since
the end of the financial year.
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 52 to 69, 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 B6
of the financial report.
The Board of directors has considered the non-audit services
provided during the year by the auditor and in accordance with written
advice provided by resolution of the Audit and Risk Committee, the
directors are satisfied that the provision of those non-audit services
is compatible with, and did not compromise, the general standard
of independence imposed by the Corporations Act 2001 for the
following reasons:
> non-audit services were 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 72.
Rounding of amounts
ASX is a company of the kind referred to in ASIC Corporations
(Rounding in Financial/Directors' Reports) 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 | Chair
Helen Lofthouse | Managing Director and Chief Executive Officer
Sydney, 16 August 2024
71
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.
Auditor’s Independence Declaration
As lead auditor for the audit of ASX Limited for the year ended 30 June 2024, 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.
Sam Hinchliffe
Sydney
Partner
PricewaterhouseCoopers
16 August 2024
Auditor’s independence declaration
ASX Annual Report 2024 | Directors’ report
ASX
72
Financial
Report
73
73
Contents
Consolidated financial statements
75 Consolidated statement of comprehensive income
76 Consolidated balance sheet
77 Consolidated statement of changes in equity
78 Consolidated statement of cash flows
Overview
79 A1. Basis of preparation
Performance of the Group
80 B1. Segment reporting
83 B2. Significant items
83 B3. Revenue from contracts with customers
85 B4. Net interest income
85 B5. Employee expenses and share-based payment expenses
88 B6. Administration expenses
89 B7. Taxation
91
B8. Dividends
91
B9. Earnings per share
92 B10. Notes to the consolidated statement of cash flows
Assets
93 C1. Trade and other receivables
94 C2. Financial assets at amortised cost
95 C3. Equity accounted investments
95 C4. Investments in equity instruments
97 C5. Intangible assets
99 C6. Property, plant and equipment
Liabilities
100 D1. Trade and other payables
100 D2. Provisions
101 D3. Leases
103 D4. Borrowings
103 D5. Debt securities on issue
Capital and risk management
104 E1 . Capital
105 E2. Risk Management Framework
Group disclosures
113 F1. Group companies
114 F2. Deed of Cross Guarantee
116 F3. Related party transactions
117 F4. Parent entity financial information
118 F5. Contingent liabilities
118 F6. Commitments
118 F7. Subsequent events
119 Consolidated entity disclosure statement
120 Directors' declaration
121 Independent auditor’s report
ASX
Financial report
ASX Annual Report 2024 | Financial report
74
Note
2024
$m
2023
$m
Revenue
Listings
B3
210.9
221.1
Markets
B3
314.9
293.1
Technology and Data
B3
257.9
243.1
Securities and Payments
B3
267.3
258.6
Interest income
B4
539.7
403.9
Share of net loss of equity accounted investments
C3
(9.9)
(15.5)
B1
1,580.8
1,404.3
Expenses
Employee
B5
(240.5)
(200.8)
Occupancy
(10.9)
(9.9)
Equipment
(59.4)
(54.8)
Administration
B6
(85.5)
(96.5)
Interest expense
B4
(463.0)
(333.1)
Depreciation and amortisation
C5, C6, D3
(40.0)
(39.1)
Reversal of prior period impairment losses on equity accounted investment
B2
—
25.5
Derecognition of CHESS Replacement project capitalised costs
B2
—
(248.4)
B1
(899.3)
(957.1)
Profit before income tax expense
681.5
447.2
Income tax expense
B7
(207.3)
(129.9)
Net profit for the year attributable to owners of the Company
474.2
317.3
Other comprehensive income
Items that cannot be reclassified to profit or loss
Change in the fair value of investments in equity instruments
—
(23.9)
Other comprehensive (loss)/income for the year, net of tax
—
(23.9)
Total comprehensive income for the year attributable to owners of the Company
474.2
293.4
Earnings per share
Basic earnings per share (cents per share)
B9
244.8
163.9
Diluted earnings per share (cents per share)
B9
244.8
163.9
The above Consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.
Consolidated statement of comprehensive income
For the year ended 30 June 2024
Consolidated financial statements
75
Note
2024
$m
2023
$m
Current assets
Cash
B10
1,243.1
1,008.6
Financial assets at amortised cost
C2
12,159.4
11,957.5
Trade and other receivables
C1
659.3
619.4
Prepayments
25.7
22.0
Current tax assets
2.7
2.3
Equity instrument held for sale
C4
14.2
—
Equity accounted investment held for sale
C3
—
54.6
Total current assets
14,104.4
13,664.4
Non-current assets
Equity accounted investments
C3
20.9
22.2
Investments in equity instruments
C4
16.6
29.6
Intangible assets
C5
2,566.4
2,468.9
Property, plant and equipment
C6
53.4
42.6
Right-of-use assets
D3
48.0
47.9
Deferred tax assets
B7
68.3
64.4
Prepayments
8.5
2.7
Total non-current assets
2,782.1
2,678.3
Total assets
16,886.5
16,342.7
Current liabilities
Amounts owing to participants 1
E2
11,774.6
11,584.7
Trade and other payables
D1
656.9
623.7
Revenue received in advance
B3
102.0
112.5
Borrowings
D4
—
20.0
Provisions
D2
24.3
23.7
Lease liabilities
D3
11.3
11.1
Total current liabilities
12,569.1
12,375.7
Non-current liabilities
Amounts owing to participants
E2
200.0
200.0
Debt securities on issue
D5
276.4
—
Revenue received in advance
B3
63.1
73.5
Provisions
D2
6.6
5.4
Lease liabilities
D3
46.6
47.5
Total non-current liabilities
592.7
326.4
Total liabilities
13,161.8
12,702.1
Net assets
3,724.7
3,640.6
Equity
Issued capital
E1
3,046.6
3,027.2
Retained earnings
619.1
557.8
Reserves
E1
59.0
55.6
Total equity
3,724.7
3,640.6
1. The prior period balance was restated to ensure consistency with the current period presentation and classification. Refer to note A1 for further information.
The above Consolidated balance sheet should be read in conjunction with the accompanying notes.
Consolidated balance sheet
As at 30 June 2024
Consolidated financial statements
ASX Annual Report 2024 | Financial report
76
Consolidated statement of changes in equity
For the year ended 30 June 2024
Note
Issued capital
$m
Retained earnings
$m
Reserves 1
$m
Total equity
$m
Opening balance at 1 Jul 2023
3,027.2
557.8
55.6
3,640.6
Profit for the year
—
474.2
—
474.2
Other comprehensive income for the year
—
—
—
—
Total comprehensive income for the period, net of tax
—
474.2
—
474.2
Transactions with owners in their capacity as owners:
Issue of ordinary shares under dividend reinvestment plan
E1
19.4
—
—
19.4
Movements in share-based payments reserve
E1
—
—
3.4
3.4
Dividends paid
B8
—
(412.9)
—
(412.9)
Closing balance at 30 Jun 2024
3,046.6
619.1
59.0
3,724.7
Opening balance at 1 Jul 2022
3,027.2
697.8
80.4
3,805.4
Profit for the year
—
317.3
—
317.3
Other comprehensive income for the year
—
—
(23.9)
(23.9)
Total comprehensive income for the period, net of tax
—
317.3
(23.9)
293.4
Transactions with owners in their capacity as owners:
Movements in share-based payments reserve
E1
—
—
(0.9)
(0.9)
Dividends paid
B8
—
(457.3)
—
(457.3)
Closing balance at 30 Jun 2023
3,027.2
557.8
55.6
3,640.6
1. Reserves comprise the restricted capital reserve, asset revaluation reserve and the equity compensation reserve. Refer to note E1 for further details.
The above Consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
Consolidated financial statements
77
Note
2024
$m
2023
$m
Cash flows from operating activities
Receipts from customers
1,098.9
1,081.7
Payments to suppliers and employees
(484.3)
(419.0)
614.6
662.7
Increase / (decrease) in participants' margins and commitments
193.2
(981.3)
Increase in financial assets at amortised cost
(208.8)
(2,968.4)
Interest received
550.9
354.0
Interest paid
(458.0)
(297.6)
Income taxes paid
(211.6)
(173.4)
Net cash inflow / (outflow) from operating activities
480.3
(3,404.0)
Cash flows from investing activities
Payments for investments in equity instruments
(1.2)
(1.9)
Receipts from / (payments for) equity accounted investments
46.0
(16.3)
Payments for other non-current assets
(137.8)
(103.1)
Net cash outflow from investing activities
(93.0)
(121.3)
Cash flows from financing activities
Dividends paid 1
B8
(390.6)
(457.3)
Proceeds from debt securities on issue
D5
275.0
—
Proceeds from borrowings
D4
78.0
406.5
Repayment of borrowings
D4
(98.0)
(386.5)
Payment of lease liabilities
D3
(14.0)
(9.9)
Net cash outflow from financing activities
(149.6)
(447.2)
Net increase / (decrease) in cash
237.7
(3,972.5)
(Decrease) / increase in cash due to changes in foreign exchange rates
(3.2)
8.9
Cash at the beginning of the year
1,008.6
4,972.2
Cash at the end of the year
B10
1,243.1
1,008.6
1. Total cash dividends exclude amounts reinvested from the Dividend Reinvestment Plan, as well as any unclaimed monies.
The above Consolidated statement of cash flows should be read in conjunction with the accompanying notes.
Consolidated statement of cash flows
For the year ended 30 June 2024
Consolidated financial statements
ASX Annual Report 2024 | Financial report
78
A1. 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 2024 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 16 August 2024. 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 and Corporations Regulations
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 2024 and the results of the subsidiaries for the year
ended 30 June 2024. Inter-entity transactions with, or between,
subsidiaries are eliminated in full on consolidation;
> have been prepared on a historical cost basis, except for
investments in equity instruments which have been measured at
fair value through other comprehensive income (FVTOCI); and
> 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 Corporations (Rounding in Financial/Directors’ Reports)
Instrument 2016/191, unless otherwise indicated.
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 for investments at FVTOCI.
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 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.
Notes to the consolidated financial statements
Overview
Other accounting policies
Other material 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.
Changes in prior period balances
An assessment was completed in FY24, which concluded that debt
securities lodged by participants as non-cash collateral should
not be recognised in the Consolidated balance sheet. This was
determined by taking into consideration the extent of the Group's
exposure to the risks and rewards in relation to these forms of
collateral. At 30 June 2024, $647.9 million of non-cash collateral
(30 June 2023: $490.6 million) was derecognised as assets, with
an equal and opposite amount derecognised from current amounts
owing to participants. The derecognition does not impact the
Group's net assets.
Other prior period balances were restated to ensure consistency with
the current period presentation and classification.
Key judgements and estimates
In the process of applying the Group’s accounting policies, management
has made a number of judgements and applied estimates concerning
future events. Judgements and estimates that are material to the
financial statements are found in the following notes:
B3 Revenue from contracts with customers
C3 Equity accounted investments
C4 Investments in equity instruments
C5 Intangible assets.
Key judgements and estimates are contained in shaded text and
included in the relevant note.
New and amended standards and interpretations
adopted by the Group
The Australian Accounting Standards Board (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 2023.
The Group has assessed and determined that there are no new or
amended standards applicable for the first time for the financial
report for the year ended 30 June 2024, that materially affect the
Group’s accounting policies or any of the amounts recognised in
the financial statements.
New and amended standards and interpretations in issue
but not yet effective
AASB 18 Presentation and Disclosure in Financial Statements
The AASB issued AASB 18 in June 2024, which will replace AASB 101
Presentation of Financial Statements. AASB 18 is effective for annual
reporting periods beginning on or after 1 January 2027. Many principles
in AASB 101 are retained in AASB 18. The Group is continuing to assess
the full impact of adopting AASB 18.
Other new or amended accounting standards
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 2023. 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 periods.
79
Performance of the Group
Notes to the consolidated financial statements
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 under the following business units:
Line of business
Activities
ASX Group
Listings
> Provides an efficient regulated framework for entities to raise capital and source liquidity
> Offers a range of support services to listed entities including education programs, research and
insights, investor access and peer group networking
> Efficient distribution facility for quoted exchange-traded funds (ETFs) and debt securities
Markets
> Provides trading of futures and options on interest rate, equity index, agriculture, and energy
products, and exchange traded options over individual securities, including international ETFs
> Provides cash market trading of equities, warrants, ETFs and debt securities
> Offers clearing of exchange-traded derivatives and over-the-counter interest rate and equity
derivatives via ASX Clear (Futures) and ASX Clear
Technology
& Data
> Information Services offers a range of market data products including pricing and trading data
> Technical Services facilitates market access, connectivity, hosting and co-location services in
ASX's data centre, the Australian Liquidity Centre and global distribution through ASX Net
Securities &
Payments
> Provides central counterparty clearing and settlement services for equities
> Offers settlement, depository and registry services for debt securities
> Facilitates the utilisation of debt securities held in Austraclear as collateral to meet obligations
via ASX Collateral
> Provides a payment platform for high value payments, electricity providers and property
transactions
> Issuer Services utilises CHESS technology to track legal title, entitlements and holder details
for over 3 million holders with over 20 million unique security holdings
The CODM assesses the performance of the Group based on underlying net profit after tax. This measure exclude certain amounts regarded as
significant items of revenue and expense such as those that may be associated with material business restructuring or individual transactions of an
infrequent nature. Refer to note B2.
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; interest
income is presented net of interest expense, with significant items removed from operating revenue and expenses.
ASX Annual Report 2024 | Financial report
80
Notes to the consolidated financial statements
Performance of the Group
B1. Segment reporting continued
b.
Segment results
The information provided on a regular basis to the CODM and a reconciliation to statutory profit after tax for the period attributable to owners of the
Company are presented below.
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.
For the year ended 30 June
2024
2023
Segment
information
$m
Adjustments
$m
Consolidated
statement of
comprehensive
income
$m
Segment
information
$m
Adjustments
$m
Consolidated
statement of
comprehensive
income
$m
Revenue
Annual listings 1
107.2
2.2
109.4
108.3
2.5
110.8
Initial listing
20.0
—
20.0
23.0
—
23.0
Secondary listing
72.8
—
72.8
78.3
—
78.3
Investment products and other listing 2
8.2
0.5
8.7
9.0
—
9.0
Listings
208.2
2.7
210.9
218.6
2.5
221.1
Equity options
17.2
—
17.2
17.3
—
17.3
Futures and over-the-counter
(OTC) clearing 3
237.9
(0.5)
237.4
211.8
0.7
212.5
Cash market trading
60.3
—
60.3
63.3
—
63.3
Markets
315.4
(0.5)
314.9
292.4
0.7
293.1
Information services 2
156.3
(0.2)
156.1
144.8
0.1
144.9
Technical services 2, 4
98.8
3.0
101.8
96.0
2.2
98.2
Technology & Data
255.1
2.8
257.9
240.8
2.3
243.1
Issuer services
58.1
0.7
58.8
61.1
0.4
61.5
Cash market clearing 5
64.5
—
64.5
68.5
(7.5)
61.0
Cash market settlement 5
64.9
—
64.9
66.3
(7.5)
58.8
Austraclear 2, 6
68.1
11.0
79.1
62.5
14.8
77.3
Securities & Payments
255.6
11.7
267.3
258.4
0.2
258.6
Operating revenue
1,034.3
1,010.2
Interest income 7
539.7
539.7
403.9
403.9
Share of net loss of equity
accounted investments
(9.9)
(9.9)
(15.5)
(15.5)
Total revenue
546.5
1,580.8
394.1
1,404.3
1. Segment information excludes revenue set aside to fund research to support small to mid-cap listed companies. These costs are reclassified from expenses to revenue in the Consolidated
statement of comprehensive income.
2. Segment information includes bad debts provisions/(reversals) in revenue, which are included as administration expenses in the Consolidated statement of comprehensive income.
3. Segment information includes amounts paid under revenue sharing agreements, which are included under administration expenses in the Consolidated statement of comprehensive income.
Segment information also includes the reversal of prior period impairment losses on Yieldbroker of $0.9 million (2023: share of equity accounted losses of $0.7 million) which are included as Share
of net losses of equity accounted investments in the Consolidated statement of comprehensive income.
4. Depreciation on fibre optic leases is included as revenue under segment information, but within depreciation and amortisation expenses in the Consolidated statement of comprehensive income.
5. In the prior period, segment information excluded rebates paid under the CHESS Replacement Partnership Program, which are presented as significant items in financial year 2023. Refer to note
B2. The rebates were presented as a reduction to revenue in the Consolidated statement of comprehensive income.
6. Segment information includes the share of net losses from the equity accounted investment in Sympli of $10.8 million (2023: $14.8 million), which is included as Share of net losses of equity
accounted investments in the Consolidated statement of comprehensive income.
7. Segment information presents interest income net of interest expense. Interest revenue and interest expense are presented on a gross basis in the Consolidated statement of comprehensive income.
81
Performance of the Group
Notes to the consolidated financial statements
B1. Segment reporting continued
b.
Segment results continued
For the year ended 30 June
2024
2023
Segment
information
$m
Adjustments
$m
Consolidated
statement of
comprehensive
income
$m
Segment
information
$m
Adjustments
$m
Consolidated
statement of
comprehensive
income
$m
Expenses
Employee expenses
(240.5)
—
(240.5)
(200.8)
—
(200.8)
Occupancy
(10.9)
—
(10.9)
(9.9)
—
(9.9)
Equipment 1
(57.6)
(1.8)
(59.4)
(52.6)
(2.2)
(54.8)
Administration 1, 3
(55.7)
(29.8)
(85.5)
(54.8)
(41.7)
(96.5)
Variable 1
(13.0)
13.0
—
(12.2)
12.2
—
ASIC levy 1
(14.8)
14.8
—
(7.4)
7.4
—
Operating expenses
(392.5)
(337.7)
EBITDA
641.8
672.5
Interest expense 2
(463.0)
(463.0)
(333.1)
(333.1)
Depreciation and amortisation 1
(37.0)
(3.0)
(40.0)
(36.9)
(2.2)
(39.1)
Derecognition of CHESS Replacement
project costs 3
—
—
—
—
(248.4)
(248.4)
Reversal of prior period impairment losses
on equity accounted investment 3
—
—
—
—
25.5
25.5
Total expenses
(429.5)
(374.6)
Total expenses 4
(899.3)
(957.1)
EBIT
604.8
635.6
Net interest income
ASX Group net interest income
41.7
(41.7)
—
30.0
(30.0)
—
Net interest on collateral balances
35.0
(35.0)
—
40.8
(40.8)
—
Net interest income 2
76.7
—
70.8
—
Profit before income tax expense
681.5
—
681.5
706.4
(259.2)
447.2
Income tax expense
(207.3)
—
(207.3)
(215.3)
85.4
(129.9)
Underlying profit after tax
474.2
491.1
Significant items after tax 3
—
(173.8)
Net profit for the year attributable
to owners of the Company
474.2
474.2
317.3
317.3
1. Segment information separately discloses variable expenses and ASIC levy costs, but these are included within administration expenses in the Consolidated statement of comprehensive income.
Other expenses relating to bad debts recognised, revenue share agreements or equipment costs are included within revenue in segment information, but are reported in either administration or
depreciation and amortisation expenses in the Consolidated statement of comprehensive income.
2. Segment information presents interest expense net of interest income. Interest income and interest expense are presented on a gross basis in the Consolidated statement of comprehensive income.
3. In the prior period, segment information excluded significant items. There were no significant items during the period. Significant items are reported in either administration or equipment expenses,
or as separate categories disclosed in the Consolidated statement of comprehensive income. Refer to note B2 for further information.
4. Total expenses as reported in the Consolidated statement of comprehensive income.
ASX Annual Report 2024 | Financial report
82
Performance of the Group
Notes to the consolidated financial statements
B2. Significant items
For the year ended 30 June
Note
2024
$m
2023
$m
Derecognition of CHESS Replacement project costs
C5, C6
—
(248.4)
CHESS Replacement project ancillary costs
B6
—
(3.5)
CHESS Replacement Partnership Program rebate costs
B1
—
(15.0)
CHESS Replacement Partnership Program Development Incentive Pool costs
B6
—
(17.8)
Reversal of prior period impairment losses on equity accounted investment
C3
—
25.5
Total significant items before tax
—
(259.2)
Tax on significant items
—
85.4
Total significant items after tax
B1
—
(173.8)
There were no significant items reported for the financial year ended 30 June 2024.
B3. 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 as shown by the major business units below:
For the year ended 30 June 2024
Services satisfied
at a point in time
$m
Services satisfied
over time
$m
Total
$m
Listings
3.6
207.3
210.9
Markets
314.5
0.4
314.9
Technology and Data
3.9
254.0
257.9
Securities and Payments
225.5
41.8
267.3
Total revenue from contracts with customers
547.5
503.5
1,051.0
For the year ended 30 June 2023
Services satisfied
at a point in time
$m
Services satisfied
over time
$m
Total
$m
Listings
4.8
216.3
221.1
Markets
292.6
0.5
293.1
Technology and Data
4.1
239.0
243.1
Securities and Payments
218.6
40.0
258.6
Total revenue from contracts with customers
520.1
495.8
1,015.9
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.
As at 30 June
2024
$m
2023
$m
Current
Listings
76.6
85.7
Technology and Data
7.2
9.1
Securities and Payments
18.2
17.7
Total current revenue received in advance
102.0
112.5
Non-current
Listings
63.1
73.5
Total non-current revenue received in advance
63.1
73.5
Total revenue received in advance
165.1
186.0
The current portion of the above contract liabilities will be recognised as revenue within the next financial year. The non-current portion which relates
to initial and subsequent listings will be recognised as revenue between 1 July 2025 to 30 June 2029.
83
Accounting policies
Revenue from contracts with customers is recognised when services are provided to the customer at an amount that reflects the
consideration which the Group is entitled to in exchange for the service provided.
Performance obligations that have not been satisfied at the reporting date are recognised as revenue received in advance on the Consolidated
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 secondary 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.
Revenue line
Revenue earned on services satisfied at a point in time
Revenue earned on services satisfied over time
Listings
Application and approval fees are recognised when
the application is received and approval for listing
is granted
Initial and secondary listing fees are recognised evenly
over the period the listing service is expected to be
provided, which is five and three years, respectively.
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 recognised evenly over a
financial year
Markets
Revenue from trading and clearing of futures and
equity options, and clearing of OTC interest rate
derivatives is recognised at transaction date. Where
the revenue includes variable consideration for
rebates on certain volumes traded, a liability for
rebates is recognised at trade date
Cash market trading revenue is recognised on
settlement date, which is two business days after
the initial trade date (T+2)
Membership fees revenue from participants is recognised
over the membership period which is usually over a
financial year
Technology
& Data
Fees earned on installation of data connections are
recognised when the connection is established
Licence fees are earned over the licence period. Revenue
is earned over the period in which the data is consumed
Securities &
Payments
Clearing and settlement fees are received from
the clearing and settlement of quoted securities
including equities, debt securities, warrants and
ETFs. These fees are recognised at settlement date
The revenue recognised is net of rebates expected
to be paid, which are estimated based on prior
experience with customers
Fees for Austraclear settlement and cash
transactions are recognised at transaction date.
Fees for depository services for debt securities are
recognised monthly
Issuer services revenue includes revenue for the
provision of CHESS holding statements, and holder
identification numbers (HINs). Revenue is recognised
monthly based on the number of CHESS statements
issued, and the number of HINs held
Memberships for cash market trading participants are
recognised evenly over the financial year in which the
period of membership applies
Fees for registry services for debt securities are billed
upfront and are net of rebates. These are recognised over
the registration period which is usually over a 12-month
period
Austraclear membership fees are recognised evenly over
a calendar year
Key judgements and estimates
For initial and secondary listings revenue, the Group applied critical judgement in determining the period over which performance obligations
are expected to be satisfied. The period over which listings revenue is recognised is determined using historical analysis of the duration of
initial and secondary listings. This estimated service period incorporates an element of uncertainty in relation to the length of a customer
listing, which is subject to external factors outside the Group’s control.
The Group reassesses the estimated service periods on an annual basis. There have been no changes to these periods in the current year.
B3. Revenue from contracts with customers continued
Performance of the Group
Notes to the consolidated financial statements
ASX Annual Report 2024 | Financial report
84
B4. Net interest income
For the year ended 30 June
2024
$m
2023
$m
Interest income
Effective interest income derived from:
Cash
54.0
152.9
Financial assets at amortised cost
463.3
224.1
Charge on initial margins provided by participants
22.4
26.9
Total interest income
539.7
403.9
Interest expense
Effective interest expense derived from:
Amounts owing to participants
(450.7)
(326.1)
Debt securities on issue
(5.1)
—
Borrowings
(4.8)
(4.4)
Lease liabilities
(2.4)
(2.6)
Total interest expense
(463.0)
(333.1)
Net interest income
76.7
70.8
Accounting policies
Interest income and interest expense on financial assets and liabilities are recognised on a gross basis through the effective interest rate method.
The charge on initial margins provided by participants is commensurate with the risk exposures a clearing participant brings to the Group’s
central counterparties (CCPs) and is recognised using the effective interest rate method.
B5. Employee expenses and share-based payment expenses
a.
Employee expenses
For the year ended 30 June
2024
$m
2023
$m
Employee expenses
Salaries and related on-costs
(213.8)
(179.2)
Share-based payment expenses
(7.7)
(8.0)
Superannuation
(19.0)
(13.6)
Total employee expenses
(240.5)
(200.8)
b.
Share-based payment expenses
The following table shows the total share-based payments recognised within employee expenses during the year, and includes the impact
of reversals resulting from non-market based performance hurdles not being achieved, accelerations due to changes in service periods, and
cancellation of grants during the period.
For the year ended 30 June
2024
$m
2023
$m
Long Term Variable Reward (LTVR) Plan
(0.6)
(0.2)
Short Term Variable Reward (STVR) Plan
(7.1)
(7.8)
Total
(7.7)
(8.0)
During the year ended 30 June 2024, 84,782 fully paid ordinary shares in ASX Limited were purchased on-market for the purposes of an employee
incentive scheme. The average price per security at which the shares were purchased was $57.61.
Performance of the Group
Notes to the consolidated financial statements
85
Performance of the Group
Notes to the consolidated financial statements
B5. Employee expenses and share-based payment expenses continued
c.
Long-term variable reward (LTVR) Plan
The Group provides performance rights to ordinary shares of the Company to the Group Executives to recognise performance that delivers
sustainable long-term shareholder value. They entitle participants to performance rights over ASX Limited shares. Eligibility is by invitation of the
Board and is reviewed annually.
Participants are granted performance rights that only vest if certain performance conditions are met. All performance rights are to be settled by
delivery of ordinary shares in ASX Limited subject to the performance conditions being attained. The Board may also use its discretion to elect to
cash settle the vested LTVR allocations. The LTVR performance rights granted during the year have 50% of the rights subject to a return on equity
(ROE) hurdle being achieved, and 50% on ASX’s total shareholder return (TSR) relative to a comparator group. The plan has a contractual life of four
years and do not carry rights to dividends unless the performance rights vest.
Performance rights granted under the LTVR do not entitle a participant to participate in new issues of securities to holders of shares. However, the
LTVR Plan Rules provide for adjustments of awards in certain circumstances following a bonus issue or pro-rata issue to holders of shares.
Two LTVR grants were made in the current reporting period, as shown in the following tables.
Grant date
19 October 2023
19 February 2024
Total
Number of participants
11
1
Number of instruments granted
109,337
5,282
114,619
Fair value of each performance right subject to TSR hurdle
$28.44
$36.68
Fair value of each performance right subject to ROE hurdle
$55.71
$63.96
The following table shows the movement in the number of performance rights during the current and prior year.
For the year ended 30 June
2024
No. of rights
2023
No. of rights
Opening balance at 1 July
13,821
72,283
Granted during the year
114,619
13,821
Cancelled during the year 1
—
(72,283)
Closing balance at 30 June
128,440
13,821
1. During the year, nil (2023: 72,283) performance rights were cancelled, following determination by the Board.
The fair value of the performance rights for the ROE component is calculated by dividing the underlying net profit after tax by the average
shareholder equity over the period. The fair value of performance rights for the TSR component is calculated by an independent valuer using a
Monte-Carlo simulation model. The following key assumptions have been applied in determining fair value:
19 October 2023
19 February 2024
2023
Dividend yield (per annum)
—%
—%
2.8%
Expected volatility of share price 1
20.0%
20.0%
23.0%
Risk-free interest rate (per annum)
4.3%
3.8%
3.8%
Expected time to vesting (years)
4 years
4 years
4 years
1. The expected volatility of the share price is based on the actual volatility of ASX’s daily closing share price over the five year period to the valuation date.
d.
Short-term variable reward (STVR) Plan
The Group operates a deferred equity plan for Key Management Personnel (KMP) and other employees. Under the plan, an employee receives
between 40% to 50% of their short-term variable reward (STVR) in cash, and the remainder granted as shares. From FY24, shares are granted with
a restriction period of one and two years from the date of grant. For awards made with respect to prior financial years, the restriction period was two
and four years from the date of grant. If the employee ceases employment during the restriction period, the shares are forfeited, except in certain
limited circumstances.
Employees have full ownership rights of the shares under the plan 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 the restriction period.
The number of shares allocated to each eligible employee is the amount of the portion 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.
2024
2023
Grant date
30 August 2023
1 September 2022
Number of shares allocated
84,782
84,216
Fair value of each deferred share
$58.13
$78.30
The fair value of the shares allocated is recognised at the closing share price at grant date.
ASX Annual Report 2024 | Financial report
86
Performance of the Group
Notes to the consolidated financial statements
B5. Employee expenses and share-based payment expenses continued
e.
Employee Share Gift Plan
In FY24, ASX replaced the Employee Share Purchase Plan with an Employee Share Gift Plan to increase employee ownership in the company.
The ASX Employee Share Gift Plan offers the opportunity for employees to receive $1,000 worth of fully paid ordinary shares in ASX at no cost.
All Australian permanent full-time and part-time employees, and maximum-term contractors, 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 allocation date, and are subject to compliance with ASX’s dealing rules.
The number of shares allocated to each employee is the offer amount divided by the volume weighted average price (VWAP) over the five business
days up to and including the offer close date, rounded down to the nearest share.
In FY24, the Employee Share Gift Plan allocated 15,980 shares. Under the FY23 Employee Share Purchase Plan, 6,720 shares were allocated.
Accounting policies
Salaries and related on-costs include annual leave, long service leave, employee cash incentives and relevant taxes. Employee expenses are
recognised over the period the employee renders the service. Long service leave is discounted to its present value using assumptions relating
to staff departures and future salaries.
Share based payments are recognised over the vesting period as an expense based on the grant date fair value 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 exclude 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 is recognised in profit or loss with a
corresponding adjustment to the equity compensation reserve.
f.
Key Management Personnel (KMP) remuneration
KMP remuneration (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 52 to 69.
For the year ended 30 June
2024
$'000
2023
$'000
Short-term employee benefits
9,924
9,213
Post-employment benefits
330
353
Long-term benefits
104
256
Share-based payments
1,772
1,700
Total
12,130
11,522
87
Performance of the Group
Notes to the consolidated financial statements
B6. Administration expenses
For the year ended 30 June
2024
$m
2023
$m
Consultants and other professional fees
(25.7)
(27.1)
Variable 1
(10.5)
(9.9)
ASIC Supervision Levy
(14.8)
(7.4)
Directors' fees
(3.7)
(3.9)
Auditor's remuneration
(2.0)
(2.1)
Other expenses 2
(27.4)
(24.3)
Loss allowance and amounts written off
(1.4)
(0.5)
CHESS Replacement project ancillary costs
—
(3.5)
CHESS Replacement Partnership Program Development Incentive Pool costs
—
(17.8)
Total administration expenses
(85.5)
(96.5)
1. Variable costs primarily relate to postage and stationery costs.
2. Other expenses include insurance, marketing, travel and entertainment costs.
Accounting policies
Administration expenses are recognised as the relevant service is provided. Administration expenses relating to provisions are recognised for
present obligations arising from past events where a payment to settle the obligation is probable and can be reliably measured.
a.
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:
2024
$'000
2023
$'000
Statutory audit services:
Audit and review of the financial statements and other audit work under the Corporations Act 2001
1,160
1,318
Audit of information technology platforms
483
460
Other audit services:
Code of Practice compliance
103
98
Other assurance services
41
39
Non-audit services:
Tax compliance services
163
224
Total remuneration for PricewaterhouseCoopers Australia
1,950
2,139
Network firms of PricewaterhouseCoopers Australia
Other assurance services
98
—
Total auditor's remuneration
2,048
2,139
ASX Annual Report 2024 | Financial report
88
Performance of the Group
Notes to the consolidated financial statements
B7. Taxation
ASX is the head entity of the tax consolidated group and is therefore responsible for the income tax liabilities of its 100% owned Australian resident
subsidiaries in 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.
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
2024
$m
2023
$m
Income tax expense
Current year tax expense
(208.4)
(147.6)
Prior year adjustments
(2.6)
4.0
Total income tax expense impacting income tax payable
(211.0)
(143.6)
Deferred tax expense
Prior year adjustments
3.5
(2.5)
Temporary differences
0.2
16.2
Total deferred tax expense
3.7
13.7
Total income tax expense
(207.3)
(129.9)
Profit before income tax expense
681.5
447.2
Prima facie income tax expense calculated at 30% (2023: 30%) on the profit before tax
(204.4)
(134.2)
Movement in income tax expense due to:
Non-deductible items
(0.8)
(0.1)
Equity accounted investment losses
(3.0)
(4.7)
Non-assessable income 1
—
7.6
Adjustments to current tax for prior years
0.9
1.5
Total income tax expense
(207.3)
(129.9)
Income tax on items recognised directly in equity
Deferred STVR shares returned to trust
—
0.1
Total
—
0.1
Income tax on items recognised directly in other comprehensive income
Revaluation of investments in equity instruments
—
(4.4)
Total
—
(4.4)
1. Relates to the reversal of prior period impairment losses on an equity accounted investment.
89
Performance of the Group
Notes to the consolidated financial statements
B7. Taxation continued
As at 30 June
2024
$m
2023
$m
Deferred tax asset
Deferred tax asset comprises the estimated future benefit at an income tax rate of 30%
(2023: 30%) of the following items:
Employee entitlements provisions
17.0
13.7
Lease liabilities
17.4
17.5
Accrued expenses
8.3
7.8
Revenue received in advance
49.0
54.4
Expected credit loss allowance
0.6
0.3
Deferred tax asset
92.3
93.7
Deferred tax liability comprises the estimated future expense at an income tax rate of 30%
(2023: 30%) of the following items:
Property, plant and equipment
(9.0)
(14.3)
Right-of-use assets
(14.4)
(14.4)
LTVR Plan
(0.3)
(0.3)
Revaluation of investments in equity instruments
(0.3)
(0.3)
Deferred tax liability
(24.0)
(29.3)
Net deferred tax asset
68.3
64.4
Unrecognised tax losses
At 30 June 2024, the Group has unrealised losses of $88.0 million relating to investments in equity instruments and equity accounted investments.
The Group also has realised capital losses of $9.7 million relating to the sale of Yieldbroker Pty Limited in August 2023. The Group has not recognised
a deferred tax asset for this potential tax benefit of $29.3 million as it is uncertain future taxable capital gains will be available against which the Group
can use the benefit.
Accounting policies
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 2024 | Financial report
90
Performance of the Group
Notes to the consolidated financial statements
B8. Dividends
The following tables includes information relating to dividends paid by ASX during the current and prior financial years.
For the year ended 30 June 2024
Cents per share
Total amount
$m
Final dividend for the year ended 30 June 2023
112.1
217.0
Interim dividend for the year ended 30 June 2024
101.2
195.9
Total
213.3
412.9
For the year ended 30 June 2023
Cents per share
Total amount
$m
Final dividend for the year ended 30 June 2022
120.0
232.3
Interim dividend for the year ended 30 June 2023
116.2
225.0
Total
236.2
457.3
Since the end of the year, the directors have determined a FY24 final dividend of 106.8 cents per share totalling $207.1 million. The dividend will be
fully franked based on tax paid at 30%, and has been determined based on a payout ratio of 85% of underlying net profit after tax, which is within the
Board approved policy of a dividend payout ratio of between 80-90% of underlying net profit after tax.
Accounting policies
A liability is recognised for the amount of any dividends determined on or before the balance date but not yet paid.
The final dividend in respect of the financial year was determined after balance date, and therefore no provision was recognised.
Dividend franking account
As at 30 June
2024
$m
2023
$m
Franking credits available for future years at 30% adjusted for the payment/refund of current income tax
322.8
288.8
Adjusting for the payment of the final dividend for the year ended 30 June 2024, the franking credit balance would be $234.1 million
(2023: $195.8 million).
B9. Earnings per share
As at 30 June
2024
2023
Basic and diluted earnings per share (cents)
244.8
163.9
Weighted average number of ordinary shares used in calculating basic and diluted earnings per share
193,673,190
193,579,896
The increase in the weighted average number of ordinary shares reflects the ordinary shares issued under the dividend reinvestment plan applied
to the FY24 interim dividend. The basic and diluted earnings per share (EPS) amounts have been calculated on the basis of net profit after tax of
$474.2 million (2023: $317.3 million).
As the Group has no potential ordinary shares that have a material impact on diluted EPS, the basic and diluted earnings per share is reported
as the same.
Accounting policies
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, 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.
91
Performance of the Group
Notes to the consolidated financial statements
B10. Notes to the consolidated statement of cash flows
a.
Reconciliation of the operating profit after income tax to the net cash flows from operating activities
2024
$m
2023
$m
Net profit after tax
474.2
317.3
Non-cash items
Depreciation and amortisation
40.0
39.1
Movements in share-based payments reserve
3.4
(0.9)
Share of net loss of equity accounted investments
9.9
15.5
Foreign currency revaluation
3.2
(8.9)
Reversal of prior period impairment losses on equity accounted investment
—
(25.5)
Derecognition of CHESS Replacement project costs
—
251.9
Total non-cash items
56.5
271.2
Changes in financial assets and amounts owing to participants
Decrease in financial assets at amortised cost 1
(201.9)
(2,998.3)
Increase / (decrease) in amounts owing to participants 2, 4
189.9
(966.4)
Changes in working capital
Increase in tax balances
(4.3)
(43.4)
Decrease / (increase) in trade and other receivables 3
1.5
(15.5)
Increase in prepayments
(9.5)
(1.3)
(Decrease) / increase in trade and other payables 3
(7.0)
62.8
Decrease in revenue received in advance
(20.9)
(32.8)
Increase in provisions
1.8
2.4
Net cash Inflow / (outflow) from operating activities
480.3
(3,404.0)
1. Reconciliation of this line item to the Consolidated statement of cash flows includes interest from discount securities reflected within net profit after tax.
2. The reconciliation of this line item in the Consolidated statement of cash flows includes foreign currency revaluation on amounts owing to participants reflected above.
3. Movements in trade and other receivables and trade and other payables exclude movements attributable to investing and financing activities such as capital expenditure accruals, makegood
provisions and securities pledged under reverse repurchase agreements.
4. The prior period balance was restated to ensure consistency with current period presentation and classification.
b.
Reconciliation of cash
For the purposes of the Consolidated statement of cash flows, cash includes Cash at bank and on hand, and Overnight cash deposits:
2024
$m
2023
$m
Cash at bank and on hand
822.7
739.8
Overnight cash deposits
420.4
268.8
Total cash
1,243.1
1,008.6
c.
ASX Group funds
Total funds available for the Group to invest comprise of the following:
As at 30 June
2024
$m
2023
$m
ASX Group cash and financial assets
1,427.9
1,181.4
Participants’ margins and commitments 1, 2
11,974.6
11,784.7
Total funds available to invest 2
13,402.5
12,966.1
Invested in:
Cash
1,243.1
1,008.6
Financial assets at amortised cost
12,159.4
11,957.5
Total
13,402.5
12,966.1
1. Includes current and non-current amounts owing to participants.
2. The prior period balances have been restated to ensure consistency with current period presentation and classification.
ASX Annual Report 2024 | Financial report
92
Assets
Notes to the consolidated financial statements
C1. Trade and other receivables
As at 30 June
2024
$m
2023
$m
Current
Trade receivables
117.1
116.4
Margins receivable 1
512.0
471.8
Contract assets
11.0
6.6
Interest receivable
20.9
25.1
Other debtors
—
0.1
Less: loss allowance
(1.7)
(0.6)
Total trade and other receivables
659.3
619.4
1. These are the margin requirements arising from 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.
Expected credit losses (ECL)
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.
Ageing of trade receivables
As at 30 June 2024, the Group provided for an expected credit loss allowance of $1.7 million (2023: $0.6 million) for trade receivables that were
identified as being impaired.
The following table shows the aged analysis for gross trade receivables of the Group.
As at 30 June
2024
$m
2023
$m
Not past due
111.7
108.5
Past due 0 – 30 days
1.6
3.3
Past due 31 – 90 days
1.0
2.1
Past due 91 days and over
2.8
2.5
Trade receivables
117.1
116.4
Accounting policies
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 on the last business
day prior to reporting date, 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.
Interest receivable is interest earned but not yet received, on the Group’s cash balances, investments in assets measured at amortised cost,
and charge on initial margins provided by participants.
Credit losses
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. 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 Consolidated statement of comprehensive income in administration expenses.
93
Assets
Notes to the consolidated financial statements
C2. Financial assets at amortised cost
As at 30 June
2024
$m
2023
$m
Reverse repurchase agreements
9,578.2
10,233.3
Negotiable certificates of deposit (NCDs)
991.9
936.9
Promissory notes (P-notes)
1,589.3
787.3
Total financial assets at amortised cost
12,159.4
11,957.5
Accounting policies
Financial assets measured at amortised cost are initially recognised at fair value. Subsequent to initial recognition, these assets are amortised
using the effective interest rate method. Interest income earned on financial assets at amortised cost is recognised in the Consolidated
statement of comprehensive income using the effective interest rate method.
Financial assets at amortised cost have maturities less than one year. A majority of the Group’s investments mature within one month. Given
the short term nature of financial assets measured at amortised cost, the fair value of these assets approximate their carrying value.
C3. Equity accounted investments
Sympli Australia Pty Ltd (Sympli) is an electronic lodgement network operator that offers electronic conveyancing solutions for property settlements.
Sympli has been assessed for impairment at the reporting date. No impairment was recognised for Sympli in the current or prior year. The country of
incorporation and principal place of business for Sympli is Australia. Sympli is a private company and therefore quoted market prices are not available.
The Group’s interest in its joint venture with Sympli remains unchanged at 30 June 2024.
During the year, ASX divested its 44.7% shareholding in Yieldbroker Pty Limited (Yieldbroker). Yieldbroker was recognised as an investment in
an associate.
The Group’s interest and carrying amount of its equity accounted investments are presented below:
Name of entity
Nature of relationship
Ownership interest
Carrying amount
2024
%
2023
%
2024
$m
2023
$m
Sympli Australia Pty Ltd (Sympli)
Joint venture
49.4
49.4
20.9
22.2
Yieldbroker Pty Limited (Yieldbroker)
Associate
—
44.7
—
54.6
Total equity accounted investments
20.9
76.8
The following table presents the movements in equity accounted investments during the year:
For the year ended 30 June 2024
2024
$m
2023
$m
Opening balance
76.8
50.5
Share of net loss of equity accounted investment – Yieldbroker
—
(0.7)
Sale of equity accounted instrument – Yieldbroker
(55.5)
—
Reversal of prior period impairment – Yieldbroker
0.9
25.5
Payments for equity accounted investment – Sympli
9.5
16.3
Share of net loss of equity accounted investment – Sympli
(10.8)
(14.8)
Closing balance
20.9
76.8
Classified as current asset
—
54.6
Classified as non-current asset
20.9
22.2
Total equity accounted investments
20.9
76.8
ASX Annual Report 2024 | Financial report
94
Assets
Notes to the consolidated financial statements
C3. Equity accounted investments continued
Accounting policies
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. This is recognised in
the Consolidated statement of comprehensive income. Dividends received or receivable from associates are recognised as a reduction in the
carrying amount of the investment.
The carrying amount of equity accounted investments are 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 Consolidated 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.
Sympli
The arrangement in relation to Sympli requires unanimous consent from both joint venture 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.
C4. Investments in equity instruments
The Group holds investments in the following entities:
a.
Digital Asset Holdings (DA)
Digital Asset Holdings (DA) specialises in developing tools and smart contract applications with its own purpose built programming language which
can be used in conjunction with distributed ledgers and traditional databases.
ASX completed a review of its investment in DA, following the CHESS Replacement project solution announced on 20 November 2023, and
determined to commence a process to dispose of its equity interest in DA, subject to negotiation and agreement of favourable commercial terms.
This is expected to occur within the next 12 months. Therefore, the investment has been classified as held for sale as required by the Australian
accounting standards.
b.
Grow Inc
Grow Inc (Grow Technology Services Ltd) provides technology-enabled administration services to the superannuation and managed funds industries.
No dividends were received during the current or prior year.
The ownership held and carrying amount of the holdings are as follows:
As at 30 June 2024
Ownership held
Carrying amount
2024
%
2023
%
2024
$m
2023
$m
Digital Asset Holdings
5.5
5.4
14.2
14.2
Grow Inc
8.6
9.1
16.6
15.4
Total investments in equity instruments
30.8
29.6
c.
Fair value of investments
The following table presents the changes in the fair value of equity instruments during the year:
Investment in unlisted entities
2024
$m
2023
$m
Opening balance
29.6
47.1
Additions
1.2
1.9
Fair value (losses)/gains during the year:
> Recognised in equity
—
(19.4)
Closing balance
30.8
29.6
95
Assets
C4. Investments in equity instruments continued
c.
Fair value of investments continued
Sensitivity of fair value inputs
The fair value of the investment in DA at 30 June 2024 and 30 June 2023 has been determined using a revenue multiple approach, based on
estimates of forward revenue and information of revenue multiples of comparable companies. The valuation is sensitive to assumptions on revenue
growth and multiples.
A decrease in the revenue assumptions by 25% with a decrease in revenue multiple of 0.5x, will result in the fair value of DA decreasing to $9.0
million, with an additional fair value loss of $5.2 million recognised in other comprehensive income. An increase in revenue assumptions by 25%, with
an increase in revenue multiple of 0.5x, will result in the fair value of DA increasing to $17.8 million, and the cumulative fair value loss recognised in
other comprehensive income would reduce by $3.6 million.
The value of Grow Inc at 30 June 2024 and 30 June 2023 was determined with reference to the company valuation imputed by the respective
capital raises ASX participated in with other shareholders.
A 5% decrease in the fair value of Grow Inc will result in a $0.8 million loss (FY23: $0.8 million loss), recognised through other comprehensive income.
Accounting policies
The investments in equity instruments have been designated at fair value through other comprehensive income (FVTOCI) on initial
recognition. The election to measure the investments at FVTOCI rather than FVTPL has been made because the Group holds these assets for
strategic purposes.
The investments are initially recognised at fair value, being the consideration paid 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.
Dividend income is recognised when the right to receive the dividend has been established.
Level 1 fair value hierarchy
This category includes financial instruments where the valuation is determined by reference to unadjusted quoted prices for identical assets in
active markets where the price is readily available. The Group does not hold any instruments classified as Level 1.
Level 2 fair value hierarchy
Financial instruments classified as Level 2 are those where inputs other than unadjusted quoted prices used for Level 1 designated instruments,
are used to value the asset. The Group does not hold any instruments classified as Level 2.
Level 3 fair value hierarchy
The fair value of investments in unlisted entities (DA and Grow Inc) are classified as Level 3 instruments, because unobservable market data
was used to determine their fair value at balance date.
Key judgements and estimates
The Group has applied judgement 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.
ASX Annual Report 2024 | Financial report
96
Notes to the consolidated financial statements
C5. Intangible assets
The movements in the intangible asset balances are as follows:
2024
2023
Goodwill
$m
Software
and
platforms 1
$m
Trademarks
and
customer
lists
$m
Total
$m
Goodwill
$m
Software
and
platforms 1
$m
Trademarks
and
customer
lists
$m
Total
$m
Opening balance
Cost
2,317.6
485.4
9.1
2,812.1
2,317.6
636.8
9.1
2,963.5
Accumulated amortisation and impairment
—
(342.0)
(1.2)
(343.2)
—
(325.0)
(1.2)
(326.2)
Net book value at 1 July
2,317.6
143.4
7.9
2,468.9
2,317.6
311.8
7.9
2,637.3
Movement
Additions
—
114.3
—
114.3
—
85.3
—
85.3
Amortisation expense
—
(16.8)
—
(16.8)
—
(17.0)
—
(17.0)
Derecognition of CHESS Replacement project
costs
—
—
—
—
—
(236.7)
—
(236.7)
Net book value at 30 June
2,317.6
240.9
7.9
2,566.4
2,317.6
143.4
7.9
2,468.9
Closing balance
Cost 2
2,317.6
599.7
9.1
2,926.4
2,317.6
485.4
9.1
2,812.1
Accumulated amortisation and impairment
—
(358.8)
(1.2)
(360.0)
—
(342.0)
(1.2)
(343.2)
Net book value at 30 June 2
2,317.6
240.9
7.9
2,566.4
2,317.6
143.4
7.9
2,468.9
1. The carrying value of software and platforms under development was $194.0 million (2023: $85.3 million).
2. The cost reported in FY23 was adjusted to reflect the derecognition of the CHESS Replacement project of $236.7m. Refer to note B2.
No impairment of trademarks was recognised for the year ended 30 June 2024 (30 June 2023: nil). Customer lists recognised in the Consolidated
balance sheet have been fully amortised.
Assets
Notes to the consolidated financial statements
97
C5. Intangible assets continued
Accounting policies
Goodwill
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 it might be impaired. For the purpose of assessing impairment, assets are grouped at the
lowest levels for which there are separately identifiable cash generating units (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.
Software and platforms
Costs incurred in developing platforms 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 recognised as a prepayment for services and amortised over the
expected term of the cloud computing arrangement.
Software and platforms are subject to amortisation, and are 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 Consolidated 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.
The estimated useful lives of significant software and platforms are as follows:
Trading platforms
5 – 7 years
Clearing platforms
5 – 7 years
Depository/registry platforms
10 years
Other
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.
Key judgements and estimates
The Group consists of two CGUs, namely exchange-traded and non-exchange-traded. No impairment loss on goodwill was recognised in the
current or prior financial year, and the goodwill attributable to each CGU for the current and prior year is as follows:
Exchange-
traded
$m
Non exchange
-traded
$m
Total
$m
Goodwill
2,242.2
75.4
2,317.6
Goodwill is tested on an annual or semi-annual basis. Where the recoverable amount is less than the carrying amount, an impairment loss is
recognised as an expense in the Consolidated 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.
Management has determined the financial estimates covering the five-year period 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. The key
assumptions used in supporting the carrying value of goodwill and intangible assets not yet available for use are as follows:
2024
2023
Exchange
-traded
%
Non exchange-
traded
%
Exchange
-traded
%
Non exchange-
traded
%
Pre-tax discount rate
11.4
11.4
11.3
11.3
Post-tax discount rate
8.6
8.6
8.2
8.2
Terminal growth rate
2.0
2.0
2.0
2.0
A reasonably possible change in any of the key assumptions would not result in an impairment of carrying value.
ASX Annual Report 2024 | Financial report
98
Assets
Notes to the consolidated financial statements
Assets
Notes to the consolidated financial statements
C6. Property, plant and equipment
The movements in the property, plant and equipment asset balances are as follows:
For the year ended 30 June
2024
2023
Leasehold
improvements
$m
Plant and
equipment 1
$m
Computer
equipment 1
$m
Total
$m
Leasehold
improvements
$m
Plant and
equipment 1
$m
Computer
equipment 1
$m
Total
$m
Opening balance
Cost – Opening balance
32.9
33.8
127.3
194.0
32.5
33.5
126.3
192.3
Accumulated depreciation –
Opening balance
(32.1)
(29.5)
(89.8)
(151.4)
(31.8)
(28.3)
(80.5)
(140.6)
Net book value at 1 July
0.8
4.3
37.5
42.6
0.7
5.2
45.8
51.7
Movement
Additions
1.9
1.3
18.8
22.0
0.4
0.6
12.4
13.4
Depreciation
(0.2)
(1.0)
(10.0)
(11.2)
(0.3)
(1.2)
(9.3)
(10.8)
Derecognition of CHESS
Replacement project costs
—
—
—
—
—
(0.3)
(11.4)
(11.7)
Net book value at 30 June
2.5
4.6
46.3
53.4
0.8
4.3
37.5
42.6
Closing balance
Cost 2
34.8
35.1
146.1
216.0
32.9
33.8
127.3
194.0
Accumulated depreciation
(32.3)
(30.5)
(99.8)
(162.6)
(32.1)
(29.5)
(89.8)
(151.4)
Net book value at 30 June 2
2.5
4.6
46.3
53.4
0.8
4.3
37.5
42.6
1. The carrying value of property, plant and equipment under development is $20.7 million (2023: $8.4 million).
2. The cost reported in FY23 was adjusted to reflect the derecognition of property, plant and equipment costs relating to the CHESS Replacement project, of $11.7 million.
Accounting policies
Leasehold improvements
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.
Property, plant and equipment
Property, plant and equipment (inclusive of computer equipment) are 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.
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 the
Consolidated statement of comprehensive income.
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 estimated useful lives for each class of asset, for the current and previous year, are as follows:
Leasehold improvements
The shorter of minimum lease term and useful life
Plant and equipment
3 – 10 years
Computer equipment
3 – 5 years
99
Liabilities
Notes to the consolidated financial statements
D1. Trade and other payables
As at 30 June
2024
$m
2023
$m
Trade payables
10.4
12.1
Margins payable 1
512.0
471.8
Interest payable
40.9
37.3
Rebates payable
22.4
35.6
Employee-related payables
25.0
17.6
Accrued expenses
21.3
31.1
ASIC supervision levy payable
11.7
8.8
Other
13.2
9.4
Total
656.9
623.7
1. These are the margin requirements arising from 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.
Accounting policies
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 one month 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.
Margins payable represents collateral payable to clearing participants on cash markets and derivative positions held on the last business day
prior to reporting date, and due to be settled 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 receivable is recognised and disclosed within trade and other receivables.
Interest payable includes interest owed to participants on cash collateral and commitments lodged.
Rebates payable represent amounts due to participants and other customers and recognised where the Group has a present obligation to pay
the rebates arising from contracts with customers, and the criteria for rebate payments have been met.
D2. Provisions
As at 30 June
2024
$m
2023
$m
Current
Employee provisions 1
24.3
23.6
Premises make good provisions
—
0.1
Total
24.3
23.7
Non-current
Employee provisions 1
6.0
4.8
Premises make good provisions
0.6
0.6
Total
6.6
5.4
1. Employee provisions predominantly relate to annual and long service leave obligations.
Accounting policies
Provisions are recognised when the Group has a present legal or constructive obligation as a result of a past event, it is probable the obligation
will be settled and the amount can be reliably estimated. Where the effect of the time value of money is material, the amount of the provision is
measured as the present value of expenses required to settle the obligation, based on a market observable rate.
Where a payment to settle an obligation is not probable or cannot be reliably estimated, no provision is recognised. Such obligations are
disclosed as contingent liabilities.
Employee provisions are calculated based on expected payments. Where the payments are expected to occur more than one year in the
future, these provisions factor in the expected period of service by employees, as well as salary increases. These future obligations are
discounted using a market observable rate.
ASX Annual Report 2024 | Financial report
100
Liabilities
Notes to the consolidated financial statements
D3. Leases
The Group has entered into a number of lease arrangements for its premises and fibre optic communications.
a.
Right-of-use assets
The movements in the right-of-use asset balances are as follows:
For the year ended 30 June
2024
2023
Property
leases
$m
Fibre
optic
$m
Total
$m
Property
leases
$m
Fibre
optic
$m
Total
$m
Opening balance
Cost
80.8
7.5
88.3
79.9
11.6
91.5
Accumulated depreciation
(35.8)
(4.6)
(40.4)
(27.0)
(6.2)
(33.2)
Net book value at 1 July
45.0
2.9
47.9
52.9
5.4
58.3
Movement
Additions
10.3
1.8
12.1
0.9
—
0.9
Disposals 1
—
—
—
—
(4.1)
(4.1)
Adjustment to accumulated depreciation for
disposals 1
—
—
—
—
4.1
4.1
Depreciation expense
(9.1)
(2.9)
(12.0)
(8.8)
(2.5)
(11.3)
Net book value at 30 June
46.2
1.8
48.0
45.0
2.9
47.9
Closing balance
Cost 1
91.1
9.3
100.4
80.8
7.5
88.3
Accumulated depreciation 1
(44.9)
(7.5)
(52.4)
(35.8)
(4.6)
(40.4)
Net book value at 30 June
46.2
1.8
48.0
45.0
2.9
47.9
1. The prior period balances were restated to ensure consistency with the current period presentation and classification.
b.
Lease liabilities
The movements in the lease liabilities balance are as follows:
For the year ended 30 June
2024
$m
2023
$m
Opening balance at 1 July
58.6
67.6
Additions
13.3
0.9
Disposals
—
—
Payment of lease liabilities
(14.0)
(9.9)
Total lease liabilities
57.9
58.6
Total lease liabilities comprises of:
Current liabilities
11.3
11.1
Non-current liabilities
46.6
47.5
Total
57.9
58.6
The Consolidated statement of comprehensive income shows the following amounts relating to leases:
For the year ended 30 June
Note
2024
$m
2023
$m
Interest on lease liabilities
B4
2.4
2.6
Expense relating to short-term and low value leases
0.5
0.6
Depreciation expense
12.0
11.3
Total
14.9
14.5
101
Liabilities
Notes to the consolidated financial statements
D3. Leases continued
b.
Lease liabilities continued
Accounting policies
The right-of-use asset is initially measured at cost which comprises 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 recognised 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, which include 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; and
> 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 interest expense 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 over the lease term.
ASX Annual Report 2024 | Financial report
102
Liabilities
Notes to the consolidated financial statements
D4. Borrowings
The Group has the following borrowing arrangements:
> An unsecured bilateral committed corporate debt facility under ASX Limited to assist with short-term working capital requirements.
> Three unsecured bilateral committed liquidity facilities under ASX Clear Pty Limited (ASX Clear) to assist with liquidity support of clearing
obligations under the ASX Clear Operating Rules.
> During the period, ASX increased the liquidity facilities available to ASX Clear, by $520.0 million, from $230.0 million to $750.0 million, to
strengthen ASX Clear’s liquid resources and support its clearing operations in accordance with its obligations under the ASX Clear Operating Rules.
Each facility is subject to its own financial covenants that are monitored on a monthly basis. ASX Limited and ASX Clear have complied with these
financial covenants at all times in FY24 and FY23.
The limits, drawn amounts and expiry are as follows:
As at 30 June
Expiry
2024
2023
2024
2023
Limit
$m
Limit
$m
Drawn
$m
Drawn
$m
Bilateral committed corporate debt facility
27 July 2026
300.0
300.0
—
20.0
Bilateral committed liquidity facility
Evergreen facility
250.0
230.0
—
—
Bilateral committed liquidity facility
24 November 2026
250.0
—
—
—
Bilateral committed liquidity facility
21 December 2028
250.0
—
—
—
The proceeds and repayments of these borrowing arrangements are summarised below:
For the year ended 30 June
2024
$m
2023
$m
Opening balance
20.0
—
Drawdowns
78.0
406.5
Repayments
(98.0)
(386.5)
Closing balance
—
20.0
Accounting policies
The drawn component of the bilateral corporate debt facility, and liquidity facilities, are initially recognised at fair value and subsequently
measured at amortised cost using the effective interest method.
Where it is greater than one year from the date that an amount was drawn to when it was repaid, the drawn component will be recognised as a
non-current liability in the Consolidated balance sheet.
D5. Debt securities on issue
On 26 February 2024, ASX Limited issued $275.0 million floating rate, unsecured medium term notes (‘Notes’) under its newly established Medium
Term Notes Program. The Notes have a coupon of 3 month BBSW + 93 bps, and were priced at par and mature on 26 February 2027. ASX will use
the proceeds from the Notes for general corporate purposes.
The Notes are not subject to any financial covenants.
As at 30 June
2024
$m
2023
$m
Medium term floating rate notes 1
276.4
—
Total debt securities on issue
276.4
—
1. The carrying value of debt securities on issue recognised in the Consolidated balance sheet includes accrued interest payable.
Accounting policies
Debt securities on issue are initially measured at fair value, which includes directly attributable transaction costs associated with issuing the
debt. Debt securities on issue are subsequently measured at amortised cost.
Interest, as well as directly attributable transaction costs, are recognised in the Consolidated statement of comprehensive income using the
effective interest method.
103
Capital and risk management
Notes to the consolidated financial statements
E1. Capital
At 30 June 2024, equity of the Group totalled $3,724.7 million (2023: $3,640.6 million). The Group’s capital supports a range of activities and risks,
and capital requirements are subject to change from time to time.
The Board’s policy is to maintain an appropriate level of capital within the Group and relevant subsidiaries with the objectives of:
> meeting regulatory compliance obligations and supporting the Group’s operations. Regulatory capital arises from capital requirements from the
Reserve Bank of Australia’s Financial Stability Standards (FSS) and other regulations, as required by the various licences held;
> facilitating growth of the Group’s diversified business, and providing appropriate risk-adjusted returns to shareholders; and
> reflecting the risks associated with the Group’s operations.
The Group’s capital comprises:
2024
shares on issue 1
2023
shares on issue 1
2024
$m
2023
$m
Ordinary share capital
193,887,876
193,595,162
3,046.6
3,027.2
Retained earnings
619.1
557.8
Reserves
> Restricted capital reserve
71.5
71.5
> Asset revaluation reserve
(33.2)
(33.2)
> Equity compensation reserve
20.7
17.3
Total
3,724.7
3,640.6
1. Treasury shares are included in the total number of shares on issue. Refer to note E1(b).
In accordance with the Group’s objectives and policies, regulatory capital is held in the form of cash or other highly liquid investments, taking into
consideration the potential claims on the equity that may arise from the Group’s activities, predominantly central counterparty (CCP) clearing.
Regulatory capital comprises of default risk capital and non-default risk capital. Non-default risk capital is capital set aside for investment risk and
general business risk.
As at 30 June
2024
$m
2023
$m
Default risk capital
700.0
700.0
Non-default risk capital
413.0
396.0
Total regulatory capital
1,113.0
1,096.0
Non-regulatory capital
2,611.7
2,544.6
Total capital
3,724.7
3,640.6
Regulatory risk capital is held to support the activities of the two licensed CCP entities and the two licensed securities settlement facilities (SSF).
Refer to note E2 for Default risk capital held by the CCPs.
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).
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 2024, 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.
Ordinary shares increased by 292,714 during the year due to the activation of the dividend reinvestment plan at HY24.
Accounting policies
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.
ASX Annual Report 2024 | Financial report
104
Capital and risk management
Notes to the consolidated financial statements
E1. Capital continued
b.
Treasury shares
The following table presents the movement in treasury shares during the financial year:
For the year ended 30 June
2024
No. of shares
2023
No. of shares
Opening balance
15,139
17,972
Issue of shares under the STVR Plan
(20,178)
(6,214)
Forfeited shares transferred to the long-term incentive plan trust (LTIPT)
14,315
3,381
Closing balance
9,276
15,139
Accounting policies
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 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 a future STVR grant or vesting of LTVR performance rights.
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. From this point in time, ASX Clear assumed 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.
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 the reserve is transferred directly to retained earnings and is not recycled through profit or loss when the associated equity
instrument is sold.
Equity compensation reserve
The equity compensation reserve is used to recognise the share-based payment expense relating to performance rights issued under ASX equity
plans, as well as costs incurred to acquire shares on-market to satisfy the shares allocated to employees under the Employee Share Gift Plan, STVR
and LTVR plans. Refer to note B5.
E2. Risk Management Framework
The Group is exposed to clearing risk, financial risks, non-financial risks and strategic risks. Clearing risk and financial risk exposures, and how these
are managed, are discussed below. Non-financial risks and strategic risks are discussed on pages 20 and 21 of the Operating and Financial Review in
the Annual Report, including how the ASX manages these risks.
The sections below document the resources, exposures and sensitivities as they relate to the Group’s management of:
1. Clearing risk; and
2. Financial risks.
1.
Clearing risk management
The principal source of clearing risk lies in the potential for one or more clearing members (participants) to default. The Group has two central
counterparties (CCPs), which act as a buyer to every seller, and a seller to every buyer. Through the CCP function the Group plays, the CCPs provide
financial security for each transaction for the duration of the position by limiting counterparty credit risk.
The Group has two wholly owned subsidiaries that act as CCPs and provide clearing services:
> ASX Clear Pty Limited (ASX Clear), which provides clearing services for cash market securities and equity derivatives; and
> ASX Clear (Futures) Pty Limited (ASX Clear Futures), which provides clearing services for exchange-traded and over-the-counter (OTC) derivatives.
The Group manages the risk of CCP clearing activities by collecting margins from clearing participants as security for clearing risk undertaken.
Margins primarily consists of cash and can also include equity and debt securities. Participants also contribute to default funds managed by ASX Clear
Futures as commitments, per below. The Group’s CCPs then invest participants’ margins and default funds in highly liquid assets with low credit risk,
primarily consisting of reverse repurchase agreements, negotiable certificates of deposit (NCDs), and promissory notes (P-notes).
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.
105
E2. Risk Management Framework continued
1.
Clearing risk management continued
a. Novation
Transactions between the 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
The Group mitigates its exposure to clearing risks by requiring clearing participants 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 for 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.
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.
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 Consolidated balance sheet. The following table shows the form in which participants lodged margins and commitments at 30 June.
As at 30 June
2024
2023
ASX Clear
$m
ASX Clear
Futures
$m
Total
$m
ASX Clear
$m
ASX Clear
Futures
$m
Total
$m
On-balance sheet collateral
Current
Cash
1,012.0
10,762.6
11,774.6
970.5
10,614.2
11,584.7
Total current amounts owing to participants
1,012.0
10,762.6
11,774.6
970.5
10,614.2
11,584.7
Non-current
Cash commitments
—
200.0
200.0
—
200.0
200.0
Total non-current amounts owing
to participants
—
200.0
200.0
—
200.0
200.0
Total amounts owing to participants
1,012.0
10,962.6
11,974.6
970.5
10,814.2
11,784.7
Off-balance sheet collateral
Equity securities 1
3,172.9
—
3,172.9
3,187.5
—
3,187.5
Debt securities 2
—
647.9
647.9
—
490.6
490.6
Total off-balance sheet collateral
3,172.9
647.9
3,820.8
3,187.5
490.6
3,678.1
1. Equity securities lodged by participants are not recognised in the Consolidated balance sheet as the Group has no title to these instruments.
2. Debt securities lodged by participants are not recognised in the Consolidated balance sheet, following an assessment completed in FY24. The prior period balance was reclassified to ensure
consistency with the current period presentation and classification.
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 cash commitments to clearing guarantee
funds, which at reporting date had no determined repayment date.
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.
All net delivery and net payment obligations relating to cash market and derivative securities owing to or by participants as at 30 June 2024 were
subsequently settled.
Accounting policies
Margins that are settled by cash are initially recognised in the Consolidated balance sheet at fair value and are classified as amounts owing to
participants within current liabilities. These financial liabilities are subsequently measured at amortised cost. Refer to note E2.
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 in the Consolidated balance sheet, as the Group is not party to the contractual
provisions of the instruments other than in the event of a default.
Margins that are settled by debt securities are not recognised in the Consolidated balance sheet, as the Group’s exposure to the risks and
rewards associated with holding these debt securities as non-cash collateral have not been substantially transferred to the Group.
ASX Annual Report 2024 | Financial report
106
Capital and risk management
Notes to the consolidated financial statements
Capital and risk management
Notes to the consolidated financial statements
E2. Risk Management Framework continued
1.
Clearing risk management continued
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 largest
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 after the default loss.
To comply with this obligation, the Group has, in certain circumstances, committed 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
2024
$m
2023
$m
Restricted capital
71.5
71.5
Equity provided by the Group
178.5
178.5
Paid-in resources
250.0
250.0
Recovery assessments
300.0
300.0
Total financial resources
550.0
550.0
The financial resources at 30 June 2024 available to ASX Clear in the event of a participant default would be applied in the following order, in
accordance with the ASX Clear Operating Rules:
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
2024
$m
2023
$m
Equity provided by the Group
450.0
450.0
Cash commitments lodged by participants
200.0
200.0
Total paid-in resources
650.0
650.0
Recovery assessments
200.0
200.0
Total financial resources
850.0
850.0
The financial resources at 30 June 2024 available to ASX Clear Futures in the event of a participant default would be applied in the following order,
in accordance with the ASX Clear Futures Operating Rules:
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 over-the-counter (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.
107
E2. Risk Management Framework continued
2.
Financial risk management
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. For further detail on the Group’s non-financial, strategic and financial risks and how these are managed, please refer to the
Operating and Financial Review on pages 8 to 21.
The Group holds the following financial assets and liabilities by category:
As at 30 June
Note
2024
2023
Amortised
cost
$m
Fair value
through
profit or loss
(FVTPL)
$m
Fair value
through other
comprehensive
income
(FVTOCI)
$m
Amortised
cost
$m
Fair value
through
profit or loss
(FVTPL)
$m
Fair value
through other
comprehensive
income
(FVTOCI)
$m
Financial assets
Cash
B10
1,243.1
—
—
1,008.6
—
—
Financial assets at amortised cost 1
C2
12,159.4
—
—
11,957.5
—
—
Trade and other receivables
C1
659.3
—
—
619.4
—
—
Investments in equity instruments 2
C4
—
—
30.8
—
—
29.6
Total financial assets
14,061.8
—
30.8
13,585.5
—
29.6
Financial liabilities at amortised cost
Amounts owing to participants 3
E2
11,974.6
—
—
11,784.7
—
—
Trade and other payables 4
D1
650.1
—
—
616.9
—
—
Debt securities on issue
D5
276.4
—
—
—
—
—
Lease liabilities 5
D3
57.9
—
—
58.6
—
—
Borrowings
D4
—
—
—
20.0
—
—
Total financial liabilities
12,959.0
—
—
12,480.2
—
—
1. Comprises reverse repurchase agreements, negotiable certificates of deposit, and promissory notes.
2. Includes equity instruments held for sale.
3. Comprises current and non-current amounts owing to participants. The prior period balance was restated to ensure consistency with current period presentation and classification.
4. Excludes Goods and Services Tax (GST) payable.
5. Comprises current and non-current lease liabilities.
The maximum exposure to credit risk at the end of the reporting period for each class of financial asset is the carrying amount as detailed in the
previous table.
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.
1. Interest rate risk
Exposure arising from
Risk management
Variable rate cash investments and
money market instruments expose the
Group to interest rate risk.
> Most of the Group's investments in financial assets at amortised cost mature within one month,
minimising the period of interest rate changes in a rising interest rate environment.
> Board-approved policies and mandates are in place which set the Group’s risk appetite on interest
rate risk.
> Board-approved mandates also allow investments in assets with a longer duration.
> Managed by policies that enable the Group to pay a variable rate of interest to participants on the
cash margins held.
Fixed rate investments in debt securities
expose the Group to interest rate risk.
> Fixed rate investments are short term investments held by the Group. Per the above, as most of the
Group's investments in financial assets at amortised cost mature within one month, this minimises
the period of interest rate changes in a rising interest rate environment.
ASX Annual Report 2024 | Financial report
108
Capital and risk management
Notes to the consolidated financial statements
Capital and risk management
Notes to the consolidated financial statements
E2. Risk Management Framework continued
2.
Financial risk management continued
The Group holds the following financial asset and liabilities that are exposed to interest rate risk:
For the year ended 30 June
2024
2023
Floating
interest rate
$m
Fixed
interest rate
$m
Total
$m
Floating
interest rate
$m
Fixed
interest rate
$m
Total
$m
Interest earning financial assets
Cash
1,243.1
—
1,243.1
1,008.6
—
1,008.6
Financial assets at amortised cost
—
12,159.4
12,159.4
—
11,957.5
11,957.5
Total interest earning financial assets 1
1,243.1
12,159.4
13,402.5
1,008.6
11,957.5
12,966.1
Weighted average interest rate at period end
4.70%
4.35%
4.79%
4.03%
Interest bearing financial liabilities
Current and non-current amounts owing
to participants
11,974.6
—
11,974.6
11,784.7
—
11,784.7
Debt securities on issue
276.4
—
276.4
—
—
—
Current and non-current lease liabilities
—
57.9
57.9
—
58.6
58.6
Borrowings
—
—
—
20.0
—
20.0
Total interest bearing financial liabilities 1
12,251.0
57.9
12,308.9
11,804.7
58.6
11,863.3
Weighted average interest rate at period end
3.85%
4.48%
3.58%
4.08%
Net interest bearing financial (liabilities) /
interest earning assets
(11,007.9)
12,101.5
1,093.6
(10,796.1)
11,898.9
1,102.8
1. The prior period balances in the table above have been restated to remove non-cash collateral of $490.6 million which was incorrectly reported as part of both the total of interest earning assets
and interest bearing liabilities. The restatement has no impact on the reported net interest bearing financial (liabilities) / interest earning assets.
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. The weighted
average interest rate earned on cash at period end was 4.70% (2023: 4.79%). The weighted average floating interest rate at period end of 3.85%
(2023: 3.58%) for interest bearing financial liabilities predominantly represents the interest paid to participants, net of interest income received by
the ASX on initial margins provided by participants and ASX’s own funds.
> Fixed interest rate refers to financial instruments where the interest rate is fixed up to maturity – predominantly NCDs, P-Notes, and reverse
repurchase agreements. The weighted average interest rate at period end, earned on the asset portfolio, was 4.35% (2023: 4.03%). The fixed
interest rate at period end of 4.48% (2023: 4.08%) 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
2.16% and 6.20% (2023: 2.16% and 5.28%).
> Most of the Group’s investments in financial assets at amortised cost mature within one month, minimising the period of interest rate changes in
a rising interest rate environment.
2. Foreign currency risk
Exposure arising from
Risk management
Cash denominated in foreign currency.
> The Group has a number of cash at bank accounts denominated in foreign currency
(primarily in NZD). Cash is held to support participants' margins, and as such is not hedged,
because margins received in foreign currency are repaid in the same foreign currency of the
margin lodged by participants.
Investments in foreign currency expose
the Group to foreign currency risk.
> Board-approved policies and mandates are in place which set the Group's risk appetite on foreign
currency risk.
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 which is predominantly in NZD, and an investment
in equity instruments denominated in USD.
109
E2. Risk Management Framework continued
2.
Financial risk management continued
The following table shows the Group’s material exposures in its Consolidated balance sheet to foreign currency risk at the end of the year, expressed
in AUD.
As at 30 June
2024
2023
NZD
$m
USD
$m
EUR
$m
NZD
$m
USD
$m
EUR
$m
Financial assets
Cash 1
456.5
8.3
0.3
534.8
0.3
0.3
Investment in equity instruments 1
—
14.2
—
—
14.2
—
Receivables 1
0.1
—
—
0.1
—
—
Financial liabilities
Amounts owing to participants
449.9
8.0
—
528.4
—
—
Net exposure 1
6.7
14.5
0.3
6.5
14.5
0.3
Exchange rate for conversion AUD 1
1.0947
0.6670
0.6226
1.0871
0.6664
0.6109
1. The prior period balances were restated to ensure consistency with current period presentation and classification.
3. Equity price risk
Exposure arising from
Risk management
Other price movements associated
with underlying equities and derivatives
on trades novated to the CCPs.
> Novated equity and derivatives trades are 100% matched, and therefore there is no residual equity
price risk to the Group.
Equity price movements impact
the Group’s investments in
equity instruments.
> The Group manages equity price risk by limiting the quantum of investments held that expose the
Group to equity price risk, as well as maintaining sufficient capital reserves to absorb any losses
that may arise. Refer to note C4 for sensitivities arising from equity price risk.
4. Market risk sensitivity analysis (net of tax)
The table below provides sensitivity analysis showing how profit after tax and equity would be impacted by changes in market risk variables.
The analysis shows:
1. The direct impact of a reasonably possible change in market rates and is not intended to illustrate a remote, worst case stress test scenario;
2. For interest rate risk sensitivity analysis, the hypothetical change in basis points (bps) has been applied to interest rate risk exposures that exist at
the reporting dates. All other variables have been held constant; and
3. For foreign currency exchange sensitivity analysis, the hypothetical change has been applied to foreign currency exposures that exist at the
reporting date. All other variables, including interest rates, have been held constant.
As at 30 June
Change in variables
2024
2023
Impact
on profit
$m
Impact
on equity
$m
Impact
on profit
$m
Impact
on equity
$m
Interest rate risk
+100 basis point change in interest rates
7.7
7.7
7.9
7.9
-100 basis point change in interest rates
(7.7)
(7.7)
(7.9)
(7.9)
Currency risk
10% strengthening of AUD
(0.5)
(1.1)
(0.5)
(1.1)
10% weakening of AUD
0.5
1.1
0.5
1.1
ASX Annual Report 2024 | Financial report
110
Capital and risk management
Notes to the consolidated financial statements
Capital and risk management
Notes to the consolidated financial statements
E2. Risk Management Framework continued
2.
Financial risk management continued
b. Credit risk
Exposure arising from
Risk management
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.
> 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 the section above on Clearing Risk Management (page 105).
> Initial margin calls outside of Australian business hours.
Investment counterparty credit risk arises
on certain financial assets including cash,
other financial assets at amortised cost,
trade and other receivables, margins
receivable from participants, accrued
revenue, and interest receivable.
> Board-approved policies and mandates 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.
> Capital allocated in the Group’s balance sheet to cater for investment losses.
> Active debt collection procedures and regular review of trade receivables ageing.
S&P short-term credit ratings are used to determine the credit quality of the counterparty/issuer with whom cash and financial assets at amortised
cost are secured.
S&P short-term credit rating
2024
2023
A-1+
$m
A-1
$m
Total
$m
A-1+
$m
A-1
$m
Total
$m
Cash at bank and on hand
814.5
8.2
822.7
739.6
0.2
739.8
Overnight cash deposits
214.4
206.0
420.4
108.3
160.5
268.8
Total cash
1,028.9
214.2
1,243.1
847.9
160.7
1,008.6
Reverse repurchase agreements ¹
9,578.2
—
9,578.2
10,233.3
—
10,233.3
NCDs
526.1
465.8
991.9
471.9
465.0
936.9
P-Notes
1,589.3
—
1,589.3
787.3
—
787.3
Total financial assets at amortised cost
11,693.6
465.8
12,159.4
11,492.5
465.0
11,957.5
Total financial assets at FVTPL 2
—
—
—
—
—
—
1. Reverse repurchase agreements are collateralised by Australian Commonwealth, semi-government (Australian state and territory government), or foreign government debt securities.
2. The prior period balance was restated to ensure consistency with current period presentation and classification.
The maximum credit exposure to credit risk for trade and other receivables, margins receivable, accrued revenue and interest receivable are their
carrying value at reporting date.
Intercompany receivables consist of balances owing between the entities of the Group and are eliminated on consolidation. The ultimate parent
entity, and parent entities (refer to note F1), considers the credit risk on these balances to be low. The maximum credit exposure to the ultimate
parent entity, and parent entities, is the carrying value of these exposures at reporting date.
111
Capital and risk management
Notes to the consolidated financial statements
E2. Risk Management Framework continued
2.
Financial risk management continued
c. Liquidity risk
Exposure arising from
Risk management
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.
> 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 by repurchasing underlying collateral.
> The Group maintains forward plans and forecasts liquidity requirements on a daily basis.
> ASX Clear maintains unsecured committed liquidity facilities that assists with liquidity support for
clearing operations.
> The Group maintains a corporate debt facility which is available to be drawn for operational use.
The expected undiscounted contractual cash flows of the Group’s liabilities are shown in the following table. All financial liabilities of the Group
are non-derivative.
The values on the Consolidated balance sheet may differ from liabilities in the following table due to the inclusion of known contractual cash flows up
to maturity, in the table below.
Up to 1 month
> 1 month
to 1 year
> 1 year
No specific
maturity
Total
As at 30 June 2024
2024
$m
2024
$m
2024
$m
2024
$m
2024
$m
Financial liabilities
Trade and other payables
636.1
12.7
—
1.3
650.1
Amounts owing to participants
11,774.6
—
—
200.0
11,974.6
Debt securities on issue
—
1.4
275.0
—
276.4
Lease liabilities
1.2
12.8
38.7
—
52.7
Total financial liabilities
12,411.9
26.9
313.7
201.3
12,953.8
Up to 1 month
> 1 month
to 1 year
> 1 year
No specific
maturity
Total
As at 30 June 2023
2023
$m
2023
$m
2023
$m
2023
$m
2023
$m
Financial liabilities
Trade and other payables 1
606.4
9.6
—
0.9
616.9
Amounts owing to participants 1
11,584.7
—
—
200.0
11,784.7
Lease liabilities 1
1.1
8.8
56.0
—
65.9
Borrowings 2
20.0
—
—
—
20.0
Total financial liabilities 1
12,212.2
18.4
56.0
200.9
12,487.5
1. The prior period balances were restated to ensure consistency with current period presentation and classification.
2. Represents the drawn component on the Group’s bilateral committed corporate debt facility.
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 as these are due on demand.
d. 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.
ASX Annual Report 2024 | Financial report
112
Group disclosures
Notes to the consolidated financial statements
F1. Group companies
Ultimate parent entity 1 : ASX Limited 2
Subsidiaries of ASX Limited:
A.C.N. 611 659 664 Limited 2
ASX Acceler8 Pty Limited
ASX Benchmarks Pty Limited
ASX Clearing Corporation Limited
ASX Compliance Pty Limited
ASX Data Analytics Pty Limited
ASX Financial Settlements Pty Limited
ASX Futures Exchange Pty Limited
ASX Long-Term Incentive Plan Trust
ASX Operations Pty Ltd 2
ASX Settlement Corporation Limited 2
Australian Securities Exchange Limited 2
Australian Stock Exchange Pty Limited
SFE Corporation Limited 2
Subsidiaries of ASX Operations Pty Limited 1 :
ASX Collateral Management Services Pty Limited
Australian Clearing Corporation Limited 2
Australian Clearing House Pty Limited
Equityclear Pty Limited
Options Clearing House Pty Limited
Sydney Futures Exchange Pty Limited
Subsidiaries of ASX Clearing Corporation Limited 1 :
ASX Clear (Futures) Pty Limited
ASX Clear Pty Limited
ASX Clearing Corporation Trust
Subsidiaries of ASX Settlement Corporation Limited 1 :
ASX Settlement Pty Limited
Austraclear Ltd
Subsidiaries of ASX Settlement Pty Limited 1 :
CHESS Depositary Nominees Pty Limited
Subsidiaries of Austraclear Limited 1 :
Austraclear Services Limited
Subsidiaries of Australian Securities Exchange Limited 1 :
Australian Securities Exchange (US) Inc
ASX Limited and Australian Securities Exchange Limited are licensed to
operate financial markets. ASX Clear and ASX Clear Futures are licensed to
operate clearing facilities. Austraclear Ltd and ASX Settlement Pty Limited
are licensed to operate settlement facilities.
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 Limited is also a member of the Securities Exchanges Guarantee
Corporation (SEGC), along with CBOE Australia Pty Limited (CBOE),
which are responsible for administering the National Guarantee Fund
(NGF), a compensation fund available to meet certain types of claims
arising from dealings with participants of ASX Limited, CBOE 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 (which is incorporated in the USA). All subsidiaries have
the same reporting date.
Accounting policies
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. The Long Term Incentive Plan
Trust (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 they are controlled by the Group.
1. The ultimate parent entity’s (ASX Limited) investment in its subsidiaries was 100% (2023: 100%). The immediate parent entities’ investment in all entities during the financial year was 100%
(2023: 100%).
2. These entities are parties to the Deed of Cross Guarantee (Deed) as at the end of the financial year ended 30 June 2024. The wholly owned subsidiaries of ASX Limited which are parties
to the Deed have been granted relief from preparing financial statements in accordance with ASIC Corporations (Wholly-owned Companies) Instrument 2016/785. Refer to note F2 for
details of the Deed.
113
Group disclosures
Notes to the consolidated financial statements
F2. Deed of Cross Guarantee
The entities identified in the subsidiaries list in note F1 as parties to the Deed of Cross Guarantee (Deed) represent a ‘closed group’ for the purposes
of the ASIC Corporations (Wholly-owned Companies) Instrument 2016/785. As there are no other parties to the Deed that are controlled by the
Company, these entities also represent the ‘extended closed group’.
The effect of the Deed is that ASX Limited has guaranteed to pay any outstanding liabilities upon the winding up of any wholly owned subsidiary that
is a party to the Deed. Wholly owned subsidiaries that are parties to the Deed have also given a similar guarantee in the event that ASX Limited or
another party to the Deed is wound up.
No entities were added or removed from the Deed during or since the end of the financial 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
2024
$m
2023
$m
Total revenue
1,089.9
1,023.4
Total expenses
(445.7)
(644.1)
Profit before income tax expense
644.2
379.3
Income tax expense
(185.3)
(109.5)
Net profit for the period
458.9
269.8
Items that may be reclassified to profit or loss:
Change in the fair value of investments in equity instruments
—
(24.6)
Other comprehensive (loss)/income for the period, net of tax
—
(24.6)
Total comprehensive income for the period
458.9
245.2
Summary of movements in consolidated retained earnings for the year ended 30 June
2024
$m
2023
$m
Opening retained earnings at 1 July
512.0
699.5
Dividends paid
(412.9)
(457.3)
Profit for the period
458.9
269.8
Closing retained earnings at 30 June
558.0
512.0
ASX Annual Report 2024 | Financial report
114
F2. Deed of Cross Guarantee continued
b.
Consolidated balance sheet
The consolidated balance sheet for the closed group is set out below:
As at 30 June
2024
$m
2023
$m
Current assets
Cash
226.4
73.4
Financial assets at amortised cost
203.8
128.9
Trade and other receivables
50.4
63.7
Current tax asset
2.8
2.3
Prepayments
24.9
22.0
Equity instrument held for sale
14.2
—
Equity accounted investment held for sale
—
54.6
Total current assets
522.5
344.9
Non-current assets
Investments in subsidiaries
981.1
966.1
Investments in equity instruments
16.6
29.6
Equity accounted investments
20.9
22.2
Intangible assets
2,503.6
2,406.1
Property, plant and equipment
53.3
42.6
Right-of-use assets
48.0
47.9
Net deferred tax asset
68.2
64.3
Prepayments
8.5
2.7
Total non-current assets
3,700.2
3,581.5
Total assets
4,222.7
3,926.4
Current liabilities
Trade and other payables
100.5
109.2
Borrowings 1
—
20.0
Provisions
24.3
23.7
Lease liabilities
11.3
11.1
Revenue received in advance 1
102.0
112.5
Total current liabilities
238.1
276.5
Non-current liabilities
Provisions
6.6
5.4
Debt securities on issue
276.4
—
Lease liabilities
46.6
47.5
Revenue received in advance
63.1
73.5
Total non-current liabilities
392.7
126.4
Total liabilities
630.8
402.9
Net Assets
3,591.9
3,523.5
Equity
Issued capital
3,046.6
3,027.2
Retained earnings
558.0
512.0
Reserves
(12.7)
(15.7)
Total equity
3,591.9
3,523.5
1. The prior period balances were restated to ensure consistency with the current period presentation and classification.
Group disclosures
Notes to the consolidated financial statements
115
Group disclosures
Notes to the consolidated financial statements
F3. Related party transactions
a.
Transactions between subsidiaries
ASX Operations Pty Ltd 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 recognised as inter-entity balances. Interest is not charged on any inter-entity balances,
other than trust balances.
Transactions between the Company and subsidiaries are eliminated on consolidation.
The Company, as the parent of the Consolidated Entity, is the head entity of the Australian tax consolidated group and has entered into a tax funding
agreement with its eligible Australian resident subsidiaries. Refer to note B7 for details of these agreements.
Balances (payable)/receivable by the Company from wholly owned subsidiaries within the Group are as follows:
As at 30 June
2024
$'000
2023
$'000
Current
Amounts due from/(due to) subsidiaries and the parent entity
290,026
(73,626)
The following transactions occurred between subsidiaries and the Company during the year:
For the year ended 30 June
2024
$'000
2023
$'000
Dividends paid to the parent entity
478,000
238,800
b.
Transactions with other related entities
The following transactions occurred with other related entities during the year:
For the year ended 30 June
2024
$'000
2023
$'000
Purchase of services from associate 1
47
538
1. The prior period balance was restated to ensure consistency with current period presentation and classification.
c.
Key Management Personnel (KMP) remuneration
Refer to note B5 for details on KMP remuneration.
ASX Annual Report 2024 | Financial report
116
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
2024
$m
2023
$m
Total revenue
468.9
245.9
Total expenses
(7.3)
—
Profit before income tax expense
461.6
245.9
Income tax benefit
2.1
0.8
Net profit for the period
463.7
246.7
Other comprehensive loss for the period, net of tax
—
(23.9)
Total comprehensive income for the period
463.7
222.8
Balance sheet as at 30 June
2024
$m
2023
$m
Current assets
299.0
56.1
Non-current assets
3,484.5
3,469.7
Total assets
3,783.5
3,525.8
Current liabilities
2.7
91.5
Non-current liabilities
276.4
0.3
Total liabilities
279.1
91.8
Net assets
3,504.4
3,434.0
Issued capital
3,046.6
3,027.2
Retained earnings
475.7
424.7
Asset revaluation reserve
(33.2)
(33.2)
Equity compensation reserve
15.3
15.3
Total equity
3,504.4
3,434.0
Accounting policies
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.
b.
Guarantees entered into by the parent entity
The parent entity, ASX Limited, is party to a Deed of Cross Guarantee together with the entities defined in note F1. 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 CHESS Depositary Nominees Pty Limited (CDN) which provides $10.0 million (2023: $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 RBA’s Financial Stability Standards, the ASX CCPs have put in place arrangements to allow for the replenishment of their
default funds following a draw-down of the funds in the event of a default by one or more clearing participants. Under the 2016 Replenishment Deed
between the parent entity, ASX Limited, and the ASX CCPs, if certain conditions are met ASX is obligated to contribute to the replenishment of the
default funds up to predetermined levels. 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.
Group disclosures
Notes to the consolidated financial statements
117
Group disclosures
Notes to the consolidated financial statements
F5. Contingent liabilities
As part of the operations of the business, the Group is subject to various potential regulatory actions and reviews by the RBA, ASIC and the Australian
Competition and Consumer Commission (ACCC) from time to time, as well as legal actions and claims by third parties. The financial impact that
might arise from any potential regulatory investigations, actions, changes or requirements, or legal actions or claims by third parties, is uncertain and
cannot reliably be estimated at the balance sheet date.
ASIC investigation into previous CHESS Replacement project
On 28 March 2023, ASIC confirmed to ASX that it had commenced an investigation into suspected contraventions of the ASIC Act 2001, and the
Corporations Act 2001 in relation to the previous CHESS replacement project which was paused in November 2022.
On 13 August 2024, ASIC concluded this investigation and filed civil proceedings against ASX Limited in the Federal Court of Australia in regard
to certain statements made in February 2022 by ASX in relation to the previous CHESS Replacement project. ASIC alleges that ASX contravened
certain sections of the ASIC Act 2001 relating to misleading or deceptive conduct, and false or misleading representations by making statements to
the market on 10 February 2022 in relation to the previous CHESS replacement project. ASIC is seeking declarations, pecuniary penalties, an adverse
publicity order and costs against ASX.
ASX cooperated fully with ASIC’s investigation, recognises the significance and serious nature of these proceedings and is currently reviewing and
considering the allegations. Due to the very early stages of the proceedings and the current uncertainty with respect to the potential outcomes, ASX
cannot reliably estimate any potential future financial impact of ASIC’s action against ASX.
It is possible that ASX may be subject to legal action by various parties who participated in the previous CHESS replacement project. No such legal
action has commenced or has been notified to ASX at this time.
CHESS Replacement Partnership Program
On 16 February 2023, ASX announced the CHESS Replacement Partnership Program. The purpose of the Partnership Program is to establish a
framework to provide financial contribution toward stakeholder participation with respect to the successful progress and completion of the CHESS
Replacement project. The Partnership Program consists of two components: a Participant Rebate Pool of $15.0 million and a Development Incentive
Pool of up to $55.0 million. The Participant Rebate Pool of $15.0 million was expensed in FY23.
The Development Incentive Pool of up to $55.0 million is available to certain stakeholders who are developing technology applications to connect
with and interact with the CHESS Replacement solution. An amount of $17.8 million of the Development Incentive Pool was expensed in FY23.
The remaining balance under the Development Incentive Pool has not been accrued as at 30 June 2024 given there is no present obligation.
Future payments to eligible stakeholders are likely to be made in connection with milestones for the second release (settlement and sub-register)
under the CHESS Replacement project.
F6. Commitments
The commitments contracted for, but not yet incurred, include capital commitments related to ongoing technology projects, and operating
commitments related to property leases, software licences and maintenance contracts.
Commitments at balance date are as follows:
As at 30 June
2024
$m
2023
$m
Capital commitments 1
57.5
0.8
Operating commitments 1
399.7
51.4
Total capital and operating commitments
457.2
52.2
1. The prior period balances were restated to ensure consistency with the current period presentation and classification.
The increase in operating commitments during the year has been largely driven by the new long-term property lease that was entered into for ASX’s
future Sydney premises as well as new software licence and maintenance commitments.
F7. Subsequent events
As disclosed in Note F5 Contingent liabilities, ASIC filed civil proceedings on 13 August 2024 against ASX Limited in the Federal Court of Australia in
regard to certain statements made in February 2022 by ASX in relation to the previous CHESS Replacement project. Refer Note F5 for further details.
There have been no other material 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.
ASX Annual Report 2024 | Financial report
118
Consolidated entity disclosure statement
As at 30 June 2024
ASX
Presented below is the consolidated entity disclosure statement for ASX Limited at 30 June 2024. This statement outlines the relevant information
noted in the table below for each entity in ASX’s consolidated group.
Entity name
Entity type
Place
formed or
incorporated
For Body
Corporates,
% of share
capital held by the
public company
Tax
residency
– Australian
or foreign
ASX Limited
Body Corporate
Australia
100%
Australian
A.C.N. 611 659 664 Limited
Body Corporate
Australia
100%
Australian
ASX Acceler8 Pty Limited
Body Corporate
Australia
100%
Australian
ASX Benchmarks Pty Limited
Body Corporate
Australia
100%
Australian
ASX Clearing Corporation Limited
Body Corporate
Australia
100%
Australian
ASX Compliance Pty Limited
Body Corporate
Australia
100%
Australian
ASX Data Analytics Pty Limited
Body Corporate
Australia
100%
Australian
ASX Financial Settlements Pty Limited
Body Corporate
Australia
100%
Australian
ASX Futures Exchange Pty Limited
Body Corporate
Australia
100%
Australian
ASX Operations Pty Ltd
Body Corporate
Australia
100%
Australian
ASX Settlement Corporation Limited
Body Corporate
Australia
100%
Australian
Australian Securities Exchange Limited
Body Corporate
Australia
100%
Australian
Australian Stock Exchange Pty Limited
Body Corporate
Australia
100%
Australian
SFE Corporation Limited
Body Corporate
Australia
100%
Australian
ASX Collateral Management Services Pty Limited
Body Corporate
Australia
100%
Australian
Australian Clearing Corporation Limited
Body Corporate
Australia
100%
Australian
Australian Clearing House Pty Limited
Body Corporate
Australia
100%
Australian
Equityclear Pty Limited
Body Corporate
Australia
100%
Australian
Options Clearing House Pty Limited
Body Corporate
Australia
100%
Australian
Sydney Futures Exchange Pty Limited
Body Corporate
Australia
100%
Australian
ASX Clear (Futures) Pty Limited
Body Corporate
Australia
100%
Australian
ASX Clear Pty Limited
Body Corporate
Australia
100%
Australian
ASX Clearing Corporation Trust
Trust
Australia
n/a
Australian
ASX Settlement Pty Limited
Body Corporate
Australia
100%
Australian
Austraclear Ltd
Body Corporate
Australia
100%
Australian
CHESS Depositary Nominees Pty Limited
Body Corporate
Australia
100%
Australian
Austraclear Services Limited
Body Corporate
Australia
100%
Australian
Australian Securities Exchange (US) Inc 1
Body Corporate
USA
100%
Australian
ASX Long Term Incentive Plan Trust 2
Trust
Australia
n/a
Australian
1. Australian Securities Exchange (US) Inc is also a tax resident in the USA, the entity’s country of incorporation. However, the entity is assessed as an Australian resident under the Income Tax
Assessment Act 1997 and therefore not classified as a foreign resident under that Act.
2. All entities other than the ASX Long Term Incentive Plan Trust are part of the ASX Limited Tax consolidated group.
119
In the opinion of the directors of ASX Limited (the Company):
a. the financial statements and notes that are contained in pages 74 to 118 in the annual report are in accordance with the Corporations Act 2001,
including:
i. giving a true and fair view of the Company and the consolidated entity’s financial position as at 30 June 2024 and of its performance for the
financial year ended on that date, and
ii. complying with Australian Accounting Standards and the Corporations Regulations 2001
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. the consolidated entity disclosure statement presented on page 119 is true and correct
d. at the date of this declaration, there are reasonable grounds to believe that the members of the extended closed group identified in note F1 will
be able to meet any liabilities to which they are, or may become, subject because of the Deed of Cross Guarantee described in note F2, and
e. 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 2024.
Signed in accordance with a resolution of the directors:
Directors’ declaration
Damian Roche | Chair
Sydney, 16 August 2024
Helen Lofthouse | Managing Director and Chief Executive Officer
ASX Annual Report 2024 | Financial report
120
To the members of ASX Limited
Independent auditor’s report
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
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
Liability limited by a scheme approved under Professional Standards Legislation.
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 2024 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 financial report comprises:
•
the Consolidated balance sheet as at 30 June 2024
•
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, including material accounting policy
information and other explanatory information
•
the Consolidated entity disclosure statement as at 30 June 2024
•
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.
121
To the members of ASX Limited
Independent auditor’s report
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.
Audit Scope
•
Our audit focused on where the Group made subjective judgements; for example, significant
accounting estimates involving assumptions and inherently uncertain future events.
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.
ASX Annual Report 2024 | Financial report
122
Key audit matter
How our audit addressed the key audit matter
Impairment of assets
Goodwill impairment assessment
(Refer to note C5)
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 and
the inherent judgement and estimation uncertainty
in the Group’s assessment of the value-in-use of
each CGU. This includes the impact and uncertainty
surrounding inflation driven economic pressures and
rising interest rates on the Group’s judgement 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 for each CGU for five years and a
growth rate to extrapolate cash flow
projections beyond five 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:
•
Obtaining an understanding of and evaluating
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).
•
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.
•
Comparing the forecast cash flows and growth
rates used in the Group’s cash flow forecasts
to historical results and economic and industry
forecasts,
•
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.
•
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.
123
To the members of ASX Limited
Independent auditor’s report
To the members of ASX Limited
Independent auditor’s report
Key audit matter
How our audit addressed the key audit matter
Financial instruments
Financial assets at amortised cost
(Refer to note C2)
Financial assets at amortised cost were $12.2bn
and comprised of reverse repurchase agreements,
negotiable certificates of deposit and promissory
notes.
We considered this a key audit matter due to the
financial significance of the balance.
Our procedures included:
•
Obtaining an understanding of and evaluating
the Group’s relevant controls over the
existence of financial assets at amortised cost.
•
Evaluating the appropriateness and reliability
of a sample of data used in the Group’s
calculations by agreeing key inputs to source
documentation.
•
On a sample basis, performing tests over the
existence of financial assets at amortised cost
as at 30 June 2024 through obtaining trade
confirmations from counterparties.
•
Assessing the reasonableness of the Group’s
disclosures in the financial report against the
requirements of Australian Accounting
Standards.
•
Assessing the mathematical accuracy of the
Group’s valuation calculations through
reperformance.
ASX Annual Report 2024 | Financial report
124
Key audit matter
How our audit addressed the key audit matter
Accuracy of revenue recognition
(Refer to note B3)
Revenue from contracts with customers totalled
$1,051.0m.
Listings ($210.9m) comprises: initial and secondary
listing fees, which are deferred and recognised
evenly over the period the listing services are
expected to be provided, which is five years for
initial listings and three years for secondary listings;
and annual listing fees, which are recognised evenly
over the financial year the service is provided. The
period over which listings revenue is recognised is
determined using historical analysis of the duration
of initial and secondary listings.
All other revenue streams ($840.1m) (Markets;
Technology and Data; and Securities and
Payments) are recognised either at the point in time
or over the service period. There is limited
judgement in determining the period over which
revenue is recognised.
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.
Our procedures included:
•
Obtaining an understanding of and evaluating
the Group’s relevant controls over revenue
recognition.
•
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.
•
On a sample basis, assessing whether
revenue recognised during the current year
was recognised in the appropriate accounting
period and did not relate to an earlier or later
period, with reference to external market
announcements.
•
Evaluating the appropriateness of the Group’s
methodology and significant assumptions used
to determine the deferral periods applied to
initial and secondary 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
secondary 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.
125
To the members of ASX Limited
Independent auditor’s report
To the members of ASX Limited
Independent auditor’s report
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 2024, but does not include the
financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not
express any form of assurance conclusion thereon through our opinion on the financial report. We
have issued a separate opinion on the remuneration report.
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.
Responsibilities of the directors for the financial report
The directors of the Company are responsible for the preparation of the financial report in accordance
with Australian Accounting Standards and the Corporations Act 2001 including giving a true and fair
view and for such internal control as the directors determine is necessary to enable the preparation of
the financial report that 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.
ASX Annual Report 2024 | Financial report
126
Report on the remuneration report
Our opinion on the remuneration report
We have audited the remuneration report included in the directors’ report for the year ended 30 June
2024.
In our opinion, the remuneration report of ASX Limited for the year ended 30 June 2024 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
Sam Hinchliffe
Sydney
Partner
16 August 2024
127
To the members of ASX Limited
Independent auditor’s report
Key financial ratios
FY24
FY23
FY22
FY21
FY20
Basic earnings per share (EPS) 1
244.8c
163.9c
262.7c
248.4c
257.6c
Diluted EPS 1
244.8c
163.9c
262.7c
248.4c
257.6c
Underlying EPS 2
244.8c
253.7c
262.7c
248.4c
265.4c
Dividend per share – interim
101.2c
116.2c
116.4c
112.4c
116.4c
Dividend per share – final
106.8c
112.1c
120.0c
111.2c
122.5c
Statutory return on equity 3
13.0%
8.7%
13.7%
13.1%
13.6%
Underlying return on equity 4
13.0%
13.4%
13.7%
13.1%
14.0%
EBITDA/Operating revenue
62.1%
66.6%
72.3%
73.0%
74.9%
EBIT/operating revenue 5, 6
58.5%
62.9%
67.4%
67.4%
69.5%
Total expenses (including depreciation and amortisation)/
operating revenue 5, 6
41.5%
37.1%
32.6%
32.6%
30.5%
Capital expenditure ($m)
$136.3
$98.7
$105.2
$109.8
$80.4
Net tangible asset backing per share 7
$5.62
$5.72
$5.74
$5.79
$6.09
Net asset backing per share
$19.21
$18.81
$19.66
$19.30
$19.22
Shareholders’ equity as a % of total assets (excluding
participants’ balances)
75.9%
79.9%
76.7%
85.3%
78.5%
Shareholders’ equity as a % of total assets (including
participants’ balances)
22.1%
22.3%
20.9%
22.5%
21.4%
Share price at end of period
$60.00
$63.00
$81.71
$77.71
$85.38
Ordinary shares on issue at end of period
193,887,876
193,595,162
193,595,162
193,595,162
193,595,162
Weighted average number of ordinary shares
(excluding treasury shares) 8
193,673,190
193,579,896
193,583,153
193,591,795
193,587,739
Market value of ordinary shares on issue at end of period ($m)
$11,633
$12,197
$15,819
$15,044
$16,529
Market to book ratio at end of period
3.12
3.35
4.16
4.03
4.44
Headcount 9
Number at period end
1,193
1,050
925
848
807
Average during the period
1,144
967
876
819
773
1. Based on statutory net profit after tax (NPAT) including significant items and weighted average number of shares. As the Group has no potential ordinary shares that have a material impact on
diluted EPS, the basic and diluted EPS is reported as the same.
2. Based on underlying NPAT excluding significant items and weighted average number of shares.
3. Based on statutory NPAT including significant items.
4. Based on underlying NPAT excluding significant items.
5. Operating revenue excludes interest and dividend revenue (underlying).
6. EBITDA – earnings before interest, tax, depreciation and amortisation; EBIT – earnings before interest and tax. These metrics along with total expenses exclude significant items.
7. Net tangible assets exclude intangible assets and deferred tax assets. The prior period comparatives were restated to be in line with current reporting.
8. Weighted average number of ordinary shares used to calculate EPS.
9. Includes full-time equivalent permanent employees and contractors.
128
ASX Annual Report 2024 | Key financial ratios
FY24
FY23
FY22
FY21
FY20
Listings
Total market capitalisation ($bn) – period end
$2,857
$2,652
$2,443
$2,658
$2,057
Total number of listed entities (includes stapled entities)
– period end
2,155
2,255
2,317
2,228
2,188
Number of new listings
56
57
217
176
83
Average annual listing fee
$49,745
$48,027
$46,962
$40,341
$42,214
Initial capital quoted ($m)
$36,368
$2,513
$58,857
$40,574
$26,964
Secondary capital raised ($m)
$37,312
$41,872
$54,151
$50,561
$65,033
Other secondary capital raised including scrip-for-scrip ($m)
$8,066
$7,337
$142,319
$11,359
$5,193
Total new capital quoted ($m)
$81,746
$51,722
$255,327
$102,494
$97,190
Cash market
Trading days
252
252
253
254
255
Total cash market trades (‘000)
378,130
369,584
448,276
384,150
460,789
Average daily cash market trades
1,500,516
1,466,603
1,771,841
1,512,400
1,807,015
Continuous trading ($bn)
$743.433
$848.347
$1,078.995
$994.431
$995.319
Auctions ($bn)
$453.044
$428.736
$470.200
$363.198
$409.876
Centre Point ($bn)
$134.286
$138.123
$133.365
$106.134
$120.436
Trade reporting ($bn)
$271.644
$254.839
$286.626
$217.171
$266.053
Total cash market value ($bn)
$1,602.407
$1,670.045
$1,969.186
$1,680.934
$1,791.684
Average daily on-market value ($bn)
$5.281
$5.616
$6.650
$5.763
$5.983
Average daily value (including trade reporting) ($bn)
$6.359
$6.627
$7.783
$6.618
$7.026
Average trade size (including trade reporting) ($bn)
$4,238
$4,519
$4,393
$4,376
$3,888
Average trading fee per dollar of value (bps)
0.37
0.38
0.36
0.36
0.36
Velocity (total value/average market capitalisation) 1, 2
71%
77%
88%
86%
101%
1. Total value transacted on all venues.
2. The prior period comparatives were restated to be in line with current reporting.
Transaction levels and statistics
129
Transaction levels and statistics
FY24
FY23
FY22
FY21
FY20
Equity options (excluding ASX SPI 200)
Trading days (exchange-traded options)
252
252
253
254
255
Total contracts traded – equity options
Single stock options ('000)
61,623
58,345
60,172
56,887
65,894
Index options and futures ('000)
7,261
7,671
5,896
5,328
9,842
Average daily single stock options contracts
244,535
231,528
237,835
223,964
258,406
Average daily index options contracts
28,813
30,439
23,304
20,975
38,596
Average fee per derivatives contract 1
$0.25
$0.26
$0.23
$0.19
$0.24
Futures
Trading days (futures and options)
255
256
256
256
257
Total contracts traded – futures (‘000)
ASX SPI 200
14,936
15,389
14,815
14,425
19,246
90 day bank bills
37,301
30,323
21,235
12,833
24,967
3 year bonds
50,375
43,663
42,618
45,598
58,091
5 year bonds
326
323
913
1,138
—
10 year bonds
54,099
46,576
52,630
65,371
56,772
20 year bonds
339
177
219
201
190
30 day interbank cash rate
2,416
1,924
608
527
5,743
Agricultural
88
85
231
241
95
Electricity
950
1,060
1,001
786
539
Other 2
59
113
138
205
118
NZ$ 90 day bank bills
2,446
2,435
1,965
2,240
2,354
Total futures
163,334
142,068
136,373
143,565
168,115
Total contracts traded – options on futures (‘000)
ASX SPI 200
1
4
9
28
65
3 year bonds
0
0
0
3
177
Overnight 3 year bonds
17
6
5
0
269
Intraday 3 year bonds
38
72
7
27
508
10 year bonds 3
1
0
3
61
25
Electricity
110
103
101
116
79
Other 4
1
0
0
0
2
Total options on futures
168
185
125
235
1,125
Total futures and options on futures contract volume (‘000)
163,502
142,253
136,499
143,800
169,240
Daily average contracts – futures and options
641,184
555,674
533,197
561,720
658,522
Average fee per contract – futures and options
$1.45
$1.49
$1.56
$1.49
$1.44
OTC markets
Total notional cleared value ($bn) 5
5,605.798
7,308.498
4,638.597
5,200.102
12,454.307
Open notional cleared value ($bn) – period end 5
4,088.278
4,544.160
4,265.587
3,101.448
5,098.019
1. FY21 included the Options Liquidity Growth Program – a 3 month rebate from January to March 2021 to help promote growth in the equity options market.
2. Includes VIX and sector futures.
3. Includes overnight and intraday 10 year bonds.
4. Includes agricultural and 90 day bank bills.
5. Cleared notional value is double sided.
130
ASX Annual Report 2024 | Transaction levels and statistics
FY24
FY23
FY22
FY21
FY20
Austraclear
Settlement days
252
252
253
254
255
Transactions (‘000)
Cash transfers
575
578
560
565
645
Fixed interest securities
1,599
1,469
1,229
1,100
975
Discount securities
140
134
104
103
131
Foreign exchange
4
12
4
5
6
Other
—
1
—
1
—
Total transactions (‘000)
2,318
2,194
1,897
1,774
1,757
Average daily settlement volume
9,199
8,705
7,500
6,984
6,889
Securities holdings ($bn) – monthly average
$3,094.7
$2,788.1
$2,800.7
$2,573.8
$2,142.0
Securities holdings ($bn) – period end
$3,109.3
$3,068.4
$2,915.6
$2,667.4
$2,358.2
Average settlement and depository fee (including portfolio
holdings) per transaction (excludes registry services revenue)
$16.20
$18.04
$17.95
$17.19
$16.55
ASX Collateral ($bn) – average
$20.1
$18.8
$15.6
$18.2
$26.9
ASX Collateral ($bn) – period end
$20.3
$22.6
$17.2
$4.1
$43.4
Clearing & Settlement and Issuer Services
Clearing & Settlement days
252
252
253
254
255
Total billable cash market value cleared ($bn)
$1,457.2
$1,536.4
$1,812.2
$1,589.2
$1,659.3
Number of dominant settlement messages (m)
20.4
20.8
22.0
22.7
22.5
Number of transfers and conversion messages (m)
29.7
30.5
39.4
39.0
29.8
Number of batch settlement messages (m)
24.5
23.8
26.1
26.0
25.5
Number of unique security holdings – period end (m)
19.8
20.4
20.6
18.7
16.0
Number of unique security holdings – average (m)
20.2
20.7
20.0
17.7
14.5
System uptime (period average)
ASX Trade
100.00%
100.00%
100.00%
99.72%
100.00%
CHESS
100.00%
100.00%
100.00%
100.00%
100.00%
Futures trading
100.00%
100.00%
99.94%
100.00%
100.00%
Futures clearing
100.00%
100.00%
100.00%
100.00%
100.00%
Austraclear
100.00%
100.00%
100.00%
100.00%
100.00%
Transaction levels and statistics
131
FY24
FY23
FY22
FY21
FY20
Technical services (number at period end)
ASX distribution platform
Australian Liquidity Centre cabinets
391
390
386
368
326
Connection services
ASX Net connections
100
99
106
103
103
ASX Net service feeds
431
456
476
452
455
Australian Liquidity Centre service connections
1,399
1,346
1,287
1,170
1,078
ASX service access
ASX ITCH access
73
71
61
56
56
Futures ITCH access
75
74
75
75
71
ASX market access
ASX sessions
494
769
845
832
882
ASX gateways
119
126
133
139
160
ASX liquidity cross-connections
47
52
53
55
55
ASX OUCH access
169
160
119
104
95
Futures gateways
150
161
190
203
245
Futures liquidity cross-connections
409
354
348
349
378
Transaction levels and statistics
132
ASX Annual Report 2024 | Transaction levels and statistics
ASX Limited – ordinary shares
ASX has ordinary shares on issue. These are listed on the Australian Securities Exchange under code: ASX. Details of security 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.
Largest 20 shareholders as at 9 July 2024
Name
Number of shares
% of
issued capital
1.
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
44,391,401
22.90
2.
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
40,278,551
20.77
3.
BNP PARIBAS NOMINEES PTY LTD
25,130,608
12.96
4.
CITICORP NOMINEES PTY LIMITED
10,632,633
5.48
5.
NATIONAL NOMINEES LIMITED
2,833,225
1.46
6.
BNP PARIBAS NOMS PTY LTD
1,698,701
0.88
7.
AUSTRALIAN FOUNDATION INVESTMENT COMPANY LIMITED
1,432,000
0.74
8.
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
1,384,171
0.71
9.
CITICORP NOMINEES PTY LIMITED
788,551
0.41
10.
NETWEALTH INVESTMENTS LIMITED
691,903
0.36
11.
CITICORP NOMINEES PTY LIMITED
671,130
0.35
12.
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
390,733
0.20
13.
BNP PARIBAS NOMINEES PTY LTD
346,422
0.18
14.
BNP PARIBAS NOMINEES PTY LTD
328,525
0.17
15.
DJERRIWARRH INVESTMENTS LIMITED
316,000
0.16
16.
PACIFIC CUSTODIANS PTY LIMITED
311,445
0.16
17.
LAW VENTURE PTY LIMITED
308,999
0.16
18.
MUTUAL TRUST PTY LTD
286,839
0.15
19.
AUSTRALIAN FOUNDATION INVESTMENT COMPANY LIMITED
250,000
0.13
20. HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED – A/C 2
249,507
0.13
Total
132,721,344
68.45
Distribution of shareholdings as at 9 July 2024
Number of shares held
Number of holders
Number of shares
% of
issued capital
1 to 1,000
45,793
13,319,742
6.87
1,001 to 5,000
8,387
16,683,953
8.60
5,001 to 10,000
678
4,784,855
2.47
10,001 to 100,000
571
17,555,862
9.05
100,001 and over
80
141,543,464
73.00
Total
55,509
193,887,876
100.00
ASX
Shareholder information
133
Marketable parcel
As at 9 July 2024, there were 1,548 holders holding less than a marketable parcel of ASX shares.
A marketable parcel of ASX shares was nine shares, based on a closing price of $61.65 on 9 July 2024.
On-market buy-back
There is no current on-market buy-back.
Substantial shareholders as at 9 July 2024
The following organisations have disclosed a substantial shareholder notice to ASX.
Name
Number
of shares
% of
voting power 1
UniSuper Limited
24,038,909
12.40
AustralianSuper Pty Limited
18,524,910
9.55
State Street Corporation
13,732,781
7.09
BlackRock Group
11,712,985
6.05
Vanguard Group
9,733,048
5.03
1. Rounded to 2 decimal places.
Shareholders’ calendar
Full-year financial results announcement
Friday, 16 August 2024
Full-year dividend
Ex-dividend date
Wednesday, 21 August 2024
Record date for dividend entitlements
Thursday, 22 August 2024
Dividend payment date
Friday, 20 September 2024
Annual General Meeting
Monday, 28 October 2024
Annual General Meeting 2024
The ASX Annual General Meeting will be held at 10:00am (Sydney time) on Monday, 28 October 2024. Details about how shareholders can attend,
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 will be 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 communications
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 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
Shareholder information
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ASX Annual Report 2024 | Shareholder information
AASB
Australian Accounting Standards Board
Accountable Person
A member of the Executive Team plus the General Manager Internal Audit, who are subject to ASX’s
accountability framework
ASIC
Australian Securities and Investments Commission
ASX
The Company or the Group, as the context requires
Capital expenditure
Additions to property, plant and equipment and intangible assets measured on an accrued basis. Capital expenditure
excludes capitalised leases
CCP
Central counterparty
Charge on initial margins
provided by participants
Refer to note B4 of the financial statements, and see: www.asx.com.au/markets/clearing-and-settlement-services/
asx-clear-futures/interest-payments-haircuts-fees-and-incentives
CHESS
Clearing House Electronic Subregister System
CGU
Cash-generating unit
Company
ASX Limited
CRPP
CHESS Replacement Partnership Program
Dividend franking rate
The amount of tax ASX has already paid on a dividend payment. This can be used as a tax credit by Australian
resident shareholders. The dividend franking rate is determined by the available franking credits ASX has, and the
Board's decision on how much franking credits to be used for the dividend payment
Earnings per share (EPS),
basic and diluted
Calculated as statutory profit after tax of the Group, divided by the statutory weighted average number of
ordinary shares
Earnings per share (EPS),
underlying
Calculated as underlying profit after tax of the Group, divided by the statutory weighted average number of ordinary
shares. The LTVR Plan has two performance measures, one of which is EPS
EBIT
Earnings before interest and tax
EBITDA
Earnings before interest, tax, depreciation and amortisation
ECL
Expected Credit Loss, measured under the accounting standard AASB 9 Financial Instruments
ETF
Exchange-traded fund
ETP
Exchange-trade product
Executive KMP
The CEO, CFO, CRO, Group Executive Markets, and Group Executive Securities and Payments
Executive Team
Comprises the CEO and Group Executives, being the Chief Financial Officer (CFO), Chief Risk Officer (CRO),
Group Executive Markets, Group Executive Securities and Payments, Group Executive Listings, Group Executive
Technology and Data, Chief Compliance Officer, Group General Counsel and Company Secretary, Chief Information
Officer, Chief Customer and Operating Officer, and Group Executive, People and Culture
Fair value
The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date
Group
Consists of ASX Limited and its wholly owned subsidiaries
Group Executive
A member of the Executive Team who reports directly to the Chief Executive Officer (CEO)
HIN
Holder Identification Number
Evergreen facility
A facility that allows the borrower (with the consent of the lenders) to extend a revolving facility on an annual basis
KMP
Key Management Personnel, as defined in the accounting standard AASB 124 Related Party Disclosures.
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 Executive KMP
OTC
Over-the-counter
LTIPT
Long-term incentive plan trust
LTVR
Long-term variable reward
Net tangible assets (NTA)
Total net assets, less intangible assets and deferred tax assets
NGF
National Guarantee Fund
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Glossary
Non-executive directors
(NEDs)
Board directors who are not employees of ASX (they are independent and are not involved in the daily operations of
the Group)
NPAT
Net profit after tax attributable to the owners of ASX Limited
Ordinary shares
Fully paid ordinary shares of the ASX carry the right to participate in dividends. Refer to note E1 of the financial report
for further information
PPE
Property, plant and equipment
RBA
Reserve Bank of Australia
Relative TSR
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 the Relative TSR
ROE
Return on equity
SEGC
Securities Exchanges Guarantee Corporation, which is responsible for administering the National Guarantee Fund
(NGF), a compensation fund available to meet certain types of claims arising from dealings with participants of ASX
Limited, CBOE, and in limited circumstances, participants of ASX Clear, in accordance with the Corporations Act
2001. Refer to note F1 for further information
SSF
Securities Settlement facilities
Significant items
Significant items relate to one-off items, which are not included in underlying profit after tax. Significant items form
part of statutory profit after tax
Statutory net profit after tax
Represents net profit after tax, calculated in accordance with the Australian Accounting Standards. This is equivalent
to the statutory item 'Net profit for the year attributable to the owners of the Company'
Statutory ROE
Statutory ROE is calculated as statutory net profit after tax, over average equity
STVR
Short-term variable reward
TCFD
Task Force on Climate-related Financial Disclosures
Treasury shares
ASX Limited shares held by a member of the ASX Limited Group
Underlying profit after tax
Underlying net profit after tax, excluding significant items
Underlying ROE
Underlying ROE is calculated as underlying net profit after tax, over average equity
Vesting
Remuneration term defining the point at which the required performance hurdles and/or service requirements have
been met, and a financial benefit may be realised by the recipient
VWAP
Volume weighted average price for ASX ordinary shares
WIP
Work-in-progress
Glossary
Important information about forward-looking statements
This report contains forward-looking statements. Forward-looking statements include all statements other than statements of historical or present
facts. Forward-looking statements may be identified by the use of terminology such as ‘forecast’, ‘guidance’, ‘trend’, ‘intend’, ‘plan’, ‘continue’,
‘objective’, ‘commit’, ‘project’, ‘see’, ‘anticipate’, ‘believe’, ‘expect’, ‘estimate’, ‘aim’, ‘ambition’, ‘aspiration’, ‘goal’, ‘target’, ‘may’, ‘should’, ‘need’, ‘must’,
‘will’, ‘would’, and similar words. Examples of forward-looking statements contained in this report include statements describing: (i) our strategy and
business plans; (ii) our business outlook, including our expectations regarding future demand for our services; (iii) our outlook for macroeconomic
and industry trends; (iv) our expectations regarding our investments and joint ventures; (v) developments in relation to our major projects and related
budget and capital allocations; (vi) our expectations, commitments and objectives with respect to sustainability, decarbonisation, climate change,
including our FY25 target for net zero Scope 1 and Scope 2 emissions, our strategies to seek to support the climate transition, our commitments
to sustainability reporting, frameworks, standards and initiatives, and the perceived risks and opportunities for ASX; and (vii) our commitments to
achieve certain inclusion and diversity targets, aspirations and outcomes.
Forward-looking statements are based on ASX’s expectations and reflect assumptions, judgements, and information available as at the date they
are made. ASX cautions against reliance on any forward-looking statements. These statements do not represent guarantees or predictions of future
performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond ASX’s control and which may cause
actual results to differ materially from those expressed in this report. Except as required by applicable laws or regulations, ASX does not undertake to
publicly update or review any forward-looking statements. Past performance cannot be relied on as a guide to future performance.
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ASX Annual Report 2024 | Glossary
Shareholder enquiries
Enquiries about shareholdings in ASX Limited
Please direct all correspondence to ASX’s share registry:
Link Market Services
Level 12, 680 George Street
Sydney NSW 2000
Telephone: 1300 724 911
Email: asx@linkmarketservices.com.au
Website: www.linkmarketservices.com.au
Questions to the ASX Chair,
Managing Director and CEO, or auditor
These may be emailed to: company.secretariat@asx.com.au
Or mailed to ASX’s registered office 1,
marked to the attention of the Company Secretary.
Further information
Website: www.asx.com.au
ASX Investor Support
Telephone from within Australia 2: 131 279
Telephone from overseas: (61 2) 9338 0000
General enquiries: www.asx.com.au/about/contact-asx
Investor relations
Telephone: (61 2) 9227 0646
Email: investor.relations@asx.com.au
Media
Telephone: (61 2) 9227 0010
Email: media@asx.com.au
ASX’s offices around Australia
Sydney
(ASX’s registered office 3)
Exchange Centre
16-20 Bridge Street
Sydney NSW 2000
Telephone: (61 2) 9227 0000
Perth
Level 40, Central Park
152-158 St George’s Terrace
Perth WA 6000
Melbourne
Level 50, South Tower, Rialto
525 Collins Street
Melbourne VIC 3000
ASX’s auditor
PricewaterhouseCoopers
GPO Box 2650
Sydney NSW 2001
Telephone: (61 2) 8266 0000
Website: www.pwc.com.au
1. Details in right-hand column.
2. For the cost of a local call from anywhere in Australia.
3. Contact details correct as at 16 August 2024.
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