Trading in Australia

As Australia continues to be an important player in the global economy, especially regarding its relationship with China, the market should continue to grow over the next few years both in terms of the economy itself and the financial markets. 

Market Snapshot

With an abundance of natural resources, Australia has become a key supplier to energy and commodity hungry developing nations, which has given the Australian economy a period of extensive growth over the past decade. The Australian market is in a unique position as it is closely tied to both the more developed Western capital markets and the growing Asian markets. Although Australia’s capital markets do not receive the attention of some of the other Asian markets, a sound legal system, liquidity, increased competition and a variety of products and asset classes will continue to make the Australian markets an attractive place for future investment.

Various asset classes and financial instruments are traded in Australia both on exchanges and over-the-counter (OTC), including hybrid securities and derivatives, two relatively new, innovative asset classes. Of the AU$135 trillion market, AU$83.4 trillion is conducted over the counter and AU$52 trillion on exchange. OTC foreign exchange and exchange-traded futures are the two largest asset classes traded in Australia with AU$42 trillion and AU$49 trillion in 2013 turnover respectively.

The main financial market regulators in Australia are the Australian Securities and Investments Commission (ASIC), the Australian Prudential Regulation Authority (APRA) and the Reserve Bank of Australia. Markets are also innovating with the emergence of new technology platforms and trading strategies.

These advantages seem to be paying off as trading increases across Australia. From 2012-2013, trading in non-government debt, currency options and futures options all increased by more than 30%. This, coupled with an increasingly relevant asset management industry, highly developed trading tools and strong ecosystem development offer a number of unique opportunities for capital markets participants in this southern outpost of Asia.

Equinix (Nasdaq: EQIX) is the world's digital infrastructure company, enabling digital leaders to harness a trusted platform to bring together and interconnect the foundational infrastructure that powers their success. Equinix operates a global interconnection platform of more than 200 International Business Exchange™ (IBX®) data centers in 63 metros across 26 countries.
  Company Website
  Company Blog
  RSS Feed
  Google +