ASX Reports Record Operating Revenue, Shares Surge on New Listings and Capital Growth

The Australian Securities Exchange (ASX) has reported a record operating revenue for the first half of 2025, reflecting a 5.9% increase from the previous corresponding period. The exchange's strong performance was driven by increased demand for derivatives market data, rising listing fees, and higher trading in the cash market. The ASX's statutory net profit after tax (NPAT) grew to $243.5 million, up 5.6% from 1H24, while total expenses dipped by 20 basis points. The exchange declared a fully franked interim dividend of 111.2 cents per share, reflecting its strong financial performance.

The ASX's listings business remained stable, with a revenue increase of 3.7% in annual listing fees. However, this growth was offset by low revenue generated from initial and secondary raisings. The exchange has been working on replacing its CHESS clearing and settlement system, which has faced headwinds due to regulatory scrutiny. The ASX has made progress in this area, with the first industry test environment for the new CHESS's clearing services set to open later this month. The exchange has also been maintaining the current CHESS system to ensure it remains stable and robust.

The ASX's strong performance can be attributed to several factors, including:

1. Changing expectations for global interest rates: Volatility in markets driven by changing interest rate expectations led to increased trading activity, contributing to the rise in new listings and total quoted capital (ASX, 2025).
2. Major geopolitical disturbances: Geopolitical uncertainties also played a role in driving market volatility and, consequently, new listings and capital raised (ASX, 2025).
3. Initial Public Offerings (IPOs): The increase in IPOs, with net proceeds reaching $2.01 billion of net proceeds in 2024, the highest level since 2021, contributed to the growth in new listings and total quoted capital (ASX, 2025).
4. Strong performance of the Australian market: The overall strength of the Australian market, as indicated by the S&P/ASX 200 Index's 3.82% increase since the beginning of 2025, may have encouraged more companies to list on the ASX (ASX, 2025).

The ASX's shares surged as much as 9.2% during trading, the biggest intraday rise in nearly five years, following the release of its strong financial results. The exchange's shares closed 5% higher, reflecting investor confidence in the company's performance and prospects.

In conclusion, the ASX's record operating revenue, strong listings business, and progress in replacing its CHESS system suggest that the trends in new listings and capital growth are sustainable. The exchange's focus on technology modernization and regulatory enhancements has contributed to its financial performance and market position, and investors can expect the ASX to continue to deliver strong results in the future.