Two exchanges now connected on NYSE’s Secure Finance Transaction Infrastructure network, opening Australian market to rest of the world
The Australian Securities Exchange (ASX) and the NYSE technologies branch have connected their global networks in a move that will increase offshore access to the Australian market and provide one more strong Asia-Pacific point to NYSE’s network connections.
The two exchanges are now connected via NYSE Technologies’ Secure Financial Transaction Infrastructure network, which supports the exchange of traffic between both networks. The main aim is to provide cost effective access to new markets and data services for both platforms.
They have announced the first step of the peerage agreement was opening the ASX24 (formerly the Sydney Futures Exchange) derivatives market to NYSE Technologies customers. In the statement both companies have suggested that more services derived from this peerage are due to be rolled out over the coming months.
“With our SFTI network already extending to exchanges in Hong Kong, Japan and Singapore, we are delighted to add further connectivity in the Asia Pacific region through ASX,” said Daniel Burgin, head of Asia Pacific, NYSE Technologies. “Through SFTI, customers located anywhere in the world, will be able to access ASX markets, which is the first Australian venue available on NYSE Technologies’ community network.”
The peerage with NYSE is significant for ASX as it has been in fierce competition with Chi-X Australia for market share in the local equity market. Until recently, ASX has the monopoly over the Australian market, but has recently been forced to modernise and carry out structural reforms in order to compete with the new arrival. Now ASX is adding the NYSE peerage to the list of new services it has added to its menu, alongside the introduction of a dark order book, facilities for high-frequency traders, and upgrades to its matching engine.
“By peering our networks, ASX and NYSE Technologies will provide our respective customers with improved connectivity and greater access to venues and financial data centres,” said David Raper, ASX general manager of trading services in a joint statement released with NYSE. “Clients at the ASX Australian Liquidity Centre will be able to benefit from enhanced offshore access. It will also make ASX more accessible to our international customers wanting to trade both ASX24 and ASX Trade markets.