National Stock Exchange of Australia

National Stock Exchange of Australia
Type Stock exchange
Location Newcastle, Australia
Founded 1937
Owner NSX Limited
Key people Michael Cox (Chairman)
Ann Bowering (Acting CEO)
Scott Evans (General Manager & Company Secretary)
Ian Craig (Companies Manager)
Currency Australian dollar
No. of listings 130 (2013)
Market cap AUD 1.5 billion (2013)
Indices NSX All Equities Index
NSX All Agriculture Index
NSX All Finance Index
NSX All Investment Index
NSX All Property Index
NSX All Resources Index
NSX All Technology Index
SIMVSE All Equities Index
Website www.nsx.com.au
NSX Limited
Public
Traded as ASX: NSX
Industry Securities markets
Founded 2000, but dating back to 1937[1]
Headquarters Newcastle, Australia
Key people
 Michael Cox (Chairman)
Ann Bowering (Acting CEO)
Scott Evans (General Amanager & Company Secretary)
Ian Craig (Companies Manager)
Website www.nsx.com.au

National Stock Exchange of Australia (NSX) is a stock exchange based in Newcastle, Australia. It is owned and operated by NSX Limited, which is listed on the Australian Securities Exchange on 13 January 2005. It also operates SIM Venture Securities Exchange. On 20 December 2006 the Newcastle Stock Exchange formally sought approval and was granted a change of name by the Minister to National Stock Exchange of Australia and still trades by the acronym of "NSX".

The NSX lists various companies within Australia and overseas that meet its listing rule requirements. Trading is all-electronic based on time and price priority using NETS (the NSX Electronic Trading System) which is based on the NASDAQ OMX X-stream trading platform. Settlement of securities is electronic and on a T+2 basis utilising the ASTC CHESS system.

History

The NSX was founded in 1937 and in the past had listed as many as 300 local and regional companies. Some grew to become significant businesses, such as Brambles Limited. It was reactivated in its present form in 2000 with about 70 listed companies.

In 2011, National Stock Exchange of Australia featured on 2011 Mines and Money Australia conference on mining and investments.[2]

Timeline of significant events

Bendigo Stock Exchange

NSX Limited acquired Bendigo Stock Exchange (BSX) on 12 April 2005. BSX facilitates the trading of Bendigo Community Banks in an uncertificated market. Pending approval from the Minister the BSX will be renamed SIM Venture Securities Exchange (2010) with the objective of listing securities that have cleantech credentials. The bank securities will continue to be traded on a BSX Board within the SIM market.

Taxi Market and National Licence Market

NSX created the first publicly tradeable taxi licence market in conjunction with the Victorian Taxi Directorate. The market started trading on 28 March 2006. Licences and temporary transfers are traded. The National Licence Exchange replicates the Taxi Market but on a national basis.

The National Licence Exchange ceased operations in 2011.

The Water Exchange

NSX Limited acquired The Water Exchange on 19 October 2007 in a deal that was valued at approximately 9 million dollars. The Water Exchange facilitates the trading of permanent and temporary water entitlements within Australia. In December 2010 NSX Limited announced the sale of The Water Exchange to Envex Water Limited in a deal worth approximately one hundred thousand dollars. This represented a loss of approximately 98%.

Management Efficiency

As of 2013 the National Stock Exchange of Australia had return on total asset (ROA) of −38.76%,[3] this means that it has lost $38.76 on every $100 spent on assets. Similarly, the National Stock Exchange of Australia shows return on equity (ROE) of −99.65% meaning that it generated substantial loss on money invested by shareholders.

Financial Uncertainty

The National Stock Exchange of Australia has been loss-making since at least 2005. During the NSX 2013 annual audit, their auditor, Lawler Partners, raised a red flag in its assessment. Specifically "The ability of the economic entity to continue as a going concern and its ability to pay its debts as and when they become due and payable is dependent upon the perusal and success of the following strategies," it said in the report.

The auditor was clear that if NSX was not able to receive ongoing financial support or achieve its growth strategies, there was a "material uncertainty" about the company's ability to meet its liabilities from day-to-day business activities.[4]

Improved Outlook

NSX's performance since 2012 has improved dramatically with a significant increase in listing volumes and financial performance.[5] As a result, SHKL bought 16.04% of NSX at USD$0.25.[6] This investment, together with NSX's improved financial performance, has removed the "going concern" qualification from the auditors.[7]

Trading systems

The National Stock Exchange of Australia has been operating as an Australian Market Licensee since February 2000. In April 2005 NSX of Australia acquired the Bendigo Stock Exchange (currently known as the SIM Venture Securities Exchange or SIMVSE). Both markets operate on international standard electronic trading systems and settlement is available electronically via ASX Clear CHESS system or manually for non-CHESS enrolled securities.[8]

Trading schedule

National Stock Exchange of Australia has a start-of-day enquiry session from 2:30am to 3:00am, a pre-open sesstion from 3:00am to 10:00am, a normal trading session from 10:00am to 4:00pm, and a post-market session (end-of-day enquiry) from 4:00pm to 11:00pm (all times in AEST).[9]

Current holidays: Good Friday, Easter Monday, Anzac day (25 April), Queen's birthday (June) and Christmas Day (25 December) and New Year's Day (1 January).

Indices

Below is the list of all NSX indices:[10]

  • NSX All Equities Index
  • NSX All Agriculture Index
  • NSX All Finance Index
  • NSX All Investment Index
  • NSX All Property Index
  • NSX All Resources Index
  • NSX All Technology Index
  • SIMVSE All Equities Index

SIMVSE Joint Venture with FEX

FEX Group owns 50% of the SIM Venture Securities Exchange (SIM VSE) in a joint venture with the National Stock Exchange of Australia, which was launched in July 2010.[11] SIM VSE operates a securities market specialising in driving investment in the clean technology, renewable energy, biological science and related technology and service industries. SIM VSE has trading capability in cash equities executed using the NasdaqOMX X-Stream trading platform. Orders are entered by market participants via the electronic market interface. The trading platform compares bid and offers entered into the system and automatically executes trades in strict time/price priority. Trades are settled through CHESS.[12]

See also

References

  1. ↑ "About NSX". NSX. Retrieved 25 September 2013.
  2. ↑ "National Stock Exchange of Australia". Mines and Money. Retrieved 25 September 2013.
  3. ↑ "National Stock Exchange of Australia". Macroaxis. Retrieved 30 June 2014.
  4. ↑ "Red flag raised over funding for Newcastle Stock Exchange". Sydney Morning Herald. Retrieved 6 October 2014.
  5. ↑ "2015 AGM CEO Report" (PDF). ASX. National Stock Exchange of Australia. Retrieved 16 March 2016.
  6. ↑ "COMPLETION OF PURCHASE OF 7,225,000 SHARES IN THE THE ISSUED AND PAID UP SHARE CAPITAL OF NSX LIMITED" (PDF). NSX. National Stock Exchange of Australia. Retrieved 16 March 2016.
  7. ↑ "NSX Half Yearly Report - 31 Dec 2015" (PDF). NSX. National Stock Exchange of Australlia.
  8. ↑ "Submission by the National Stock Exchange of Australia, Ltd." (PDF). NSX. Retrieved 8 October 2013.
  9. ↑ "NSX – Market Phases". NSX. Retrieved 8 October 2013.
  10. ↑ "NSX Indexes – Prices". NSX. Retrieved 8 October 2013.
  11. ↑ "Launch of SIM Venture Securities Exchange" (PDF). SIM VSE. Retrieved 8 October 2013.
  12. ↑ "SIM VSE – Smart energy and environmental policy". FEX Group. Retrieved 8 October 2013.

External links

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