What is the ASX?

The Australian Securities Exchange (ASX) is the country's main stock exchange, where shares in more than 2,000 listed companies, exchange-traded funds, real estate investment trusts, managed funds, and corporate bonds are bought and sold. The ASX is itself a publicly listed company, and is a member of the World Federation of Exchanges.

The exchange was formed in 1987 by the merger of the six state-based stock exchanges. It operates from headquarters in Sydney and Melbourne. Trading takes place electronically through the ASX Trade platform from 10am to 4pm Sydney time, with a closing single price auction at the end of the day. Settlement of trades happens through the CHESS clearing system on a T+2 basis (two business days after the trade).

The ASX 200 is the benchmark Australian share index, made up of the 200 largest listed companies by market capitalisation. The broader ASX 300 includes the next 100 companies. The Small Ordinaries Index covers companies in the ASX 300 outside the top 100. The ASX Top 20 captures the very largest blue-chip Australian companies. These indices are widely used as benchmarks for super funds, managed funds, and ETFs.

The ASX is regulated by the Australian Securities and Investments Commission (ASIC), with the Reserve Bank of Australia overseeing the financial market infrastructure for stability. Listed companies must comply with the ASX Listing Rules, including continuous disclosure of price-sensitive information, annual financial reports, and corporate governance principles. The ASX also operates the secondary listings market, the futures and options markets (through ASX 24), and the wholesale debt markets. Total trading value across ASX markets exceeds 1.5 trillion dollars per year. The CHESS replacement project, paused in 2022, is now restarting with a phased rollout planned through 2026 to 2029.