30 April 2019 For personal use only Australian Securities and Investments Commission ASX Market Announcements Office Mr Nathan Bourne ASX Limited Senior Executive Leader, Market Infrastructure 20 Bridge Street Level 5, 100 Market Street SYDNEY NSW 2000 SYDNEY NSW 2000 2019 MACQUARIE AUSTRALIA CONFERENCE PRESENTATION Attached is the presentation that ASX Managing Director and CEO Dominic Stevens will deliver to investors at 4.00pm today at the Macquarie Australia Conference in Sydney. Mr Stevens’ speaking notes will be released on the Market Announcements Platform later today and prior to the presentation. The presentation provides an update on operational and strategic matters disclosed at ASX’s 2019 interim financial results and in the March 2019 activity report. ASX is not providing the unaudited, pro-forma financial results for the 9 months to 31 March 2019, discontinuing the practice of recent years. Daniel Csillag Company Secretary Further enquiries: Media Analysts/Investor Relations Matthew Gibbs Josie Ashton General Manager, Media and Communications Head of Investor Relations T +61 2 9227 0218 T +61 2 9227 0646 M 0411 121 219 M 0416 205 234 matthew.gibbs@asx.com.au E E josie.ashton@asx.com.au 20 Bridge Street Sydney NSW 2000 PO Box H224 Customer service 13 12 79 ASX Limited ABN 98 008 624 691 Australia Square NSW 1215 asx.com.au
For personal use only 30 April 2019 ASX Limited 2019 Macquarie Equities Conference, Sydney Operational and strategic update Dom Domin inic ic St Stevens Managing Director & CEO
Agenda For personal use only FY19 update 01 • Volume and activity as at end of Q3 Major projects update 02 • CHESS replacement • ASX Net, Secondary Data Centre, DataSphere, Sympli • Stronger Foundations program Open infrastructure solutions that help our customers 03 • Create new products and services • Improve operational efficiency • Reduce risks and costs 2 |
For personal use only FY19 update
FY19 update Strong 9 months for futures and equities trading For personal use only Futures and options on futures contracts ASX cash on-market value +7% +12% 84 80 246 188 Contracts (millions) $ billions 124 116 539 507 Mar18 YTD Mar19 YTD Mar18 YTD Mar19 YTD Open Auctions Centre Point Dominant settlement messages Capital raised +11% +22% Messages (millions) $ millions 36,473 14.6 45,086 13.2 32,359 11,413 Mar18 YTD Mar19 YTD Mar18 YTD Mar19 YTD Initial Secondary 4 |
FY19 update Costs and capital expenditure on track For personal use only Moderation of heightened interest revenue in March 2019 quarter • Money market spreads remained elevated albeit moderating • Average end-of-month collateral balances were lower than 1H19 On-track to meet expense and capital expenditure guidance for FY19 • Operating expenses expected to grow at approximately 9% • Capital expenditure expected to be approximately $70-$75 million 5 |
For personal use only Major projects update
CHESS replacement on-track Delivering an updated equities clearing and settlement system with new functions and optionality Customer development environment (CDE) opened today, on-track for March/April 2021 go-live For personal use only Jan Jan Jan Jan Jan TODAY 2017 2018 2019 2020 2021 Evaluation and consultation Build Market trials and implementation Assessment of technology DA & DLT Enterprise-grade build Incremental external Industry-wide Go-live and partner, prototype built selected software drops testing Mar/Apr DLT-based CHESS will offer existing functionality, new features and an option to connect to real-time source of truth data Upgrade to modern application Current Update to global standard messaging protocol CHESS 35 new Optional real-time synchronised functions New CHESS source of truth Carry through existing functionality requested system data store by market 7 |
Other projects on-track Adding resiliency and capability across the group ASX Net Communications network For personal use only • Completed network upgrade • Migrating customers and services in 1H20 Secondary Data Centre • Building hardware for new facility • Commencing technical migration in Q1 FY20 with commissioning in Q2 FY20 DataSphere – ASX’s data analytics capability • Completed the build of DataSphere’s technology and governance capabilities • Rolled-out internally and will be made progressively available to customers Sympli joint-venture technology build • Demonstrating efficiency gains • On-track to begin financial transactions before end of FY19 Stronger Foundations • Completing program investment by end FY19 • Transitioning into business-as-usual activities from early CY2020 8 |
For personal use only Open infrastructure solutions
Multi-layered growth strategy Customer focused, technology-driven For personal use only Revenue streams in new technical services, data analytics and DLT Addressing customer challenges through ASX’s expertise, independence and infrastructure Emerging strategic growth Leveraging core operations to make opportunities business easier for customers Expanded, enhanced Core customer core customer value proposition Superannuation system growth increasing value proposition demand for ASX’s services ASX operating Stronger Foundations program platform Contemporary, flexible and resilient ASX operating platform TODAY TOMORROW 10 |
Australian Liquidity Centre and ASX Net An open infrastructure solution delivering customers cost effectiveness and connectivity For personal use only ASX OPTIONALITY CUSTOMER CHALLENGE ASX SOLUTION CUSTOMER BENEFITS In 2010 → 3 options i) Outsource ii) Build just for ASX Manage AUSTRALIAN Competitive data centre iii) Provide open data centre LIQUDITY CENTRE services investment (ALC) infrastructure and expenses solution Connectivity with Tier-3 data centre offering to market financial community participants 11 |
Australian Liquidity Centre and ASX Net Delivering value to the industry, revenue growth and new customers to ASX For personal use only Connecting ASX Offered cross-connection across customers together financial services ecosystem Growth opportunities Limited Enabled direct access to Core value Co-location at ALC and low-latency Reliable, resilient ASX services proposition connection via ASX Net market network Built a state-of-the-art data centre and Operating ASX data centre within head office communication platform network Dedicated, tier 3 data centre (ALC) and communication network (ASX Net) PRE ALC ALC 12 |
DataSphere – ASX’s data analytics capability An open infrastructure solution offering new services For personal use only ASX OPTIONALITY CUSTOMER CHALLENGE ASX SOLUTION CUSTOMER BENEFITS In 2018 → 3 options i) Outsource Data and analytical ASX DATA Access, solutions, ii) Build just for ASX availability distribution PLATFORM iii) Provide open Access to curated and standardised An open ecosystem platform Access to a range of data, enabling infrastructure financial markets data providing technology, development of new products governance, datasets solution Limited access to big data and Access governed data platform and analytical tools without upfront investment costs data science capabilities Limited ability to commercialise Access to distribution channel for and distribute data solutions customer-developed products 13 |
DataSphere Open infrastructure, offering big data as a service For personal use only Data sets supplied by ASX and external customers Data products demanded by a range of users, e.g. ASX participants Compliance officers 3 rd party ASX data BYO data for Asset managers Listed companies sets data sets exclusive use available available Risk managers ASX internal DataSphere Storage and Data Commercial Data Science Governance Support Compute Management Management 14 |
DLT solutions Open infrastructure enabling realisation of efficiencies and innovation with source of truth information For personal use only ASX OPTIONALITY CUSTOMER CHALLENGE ASX SOLUTION CUSTOMER BENEFITS In 2017 → 3 options i) Build updated CHESS with new messaging ii) Build i) with updated Costs and DLT Productivity benefits and functionality for inefficiencies SOLUTIONS new revenue opportunities CHESS users Cost of multiple Enterprise-grade technology Benefits of perfect information, reconciliations, data infrastructure and smart-contract cost and time savings iii) Build i) and ii) plus inaccuracies, developing software, safely and securely real-time source of Opportunity to develop more bespoke solutions delivering real-time, synchronised efficient work flows, and new source of truth data and truth data for those products and services mutualised rules permissioned to view 15 |
DLT solutions From system replacement to the next generation of exchange market infrastructure For personal use only Offering use of DLT Leveraging ASX’s independence, infrastructure DLT expertise and Growth experience in operating infrastructure opportunities Limited Adding 35 new features Core value Equities clearing Expanded clearing and settlement services from Day 1 proposition and settlement services Replacing equities clearing Operating Message-based CHESS and settlement system platform DLT-based CHESS TODAY TOMORROW 16 |
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