Press Release

NSX Application To Access The Trade Acceptance Service The National Stock Exchange of Australia (NSX) is pleased to announce it has applied to ASX Ltd (ASX) for access to the Trade Acceptance Service (TAS) for clearing and settlement of trades executed on NSX. The TAS allows trades executed on the trading platforms of non-ASX affiliated Approved Market Operators (AMOs) to be cleared and settled by ASX on the same basis as trades executed on ASX’s cash equity market. This is significant as it enables transactions effected through non-ASX AMOs to be accepted for clearing and settlement in an identical fashion to trades executed on other cash equity markets in Australia. This delivers a standardisation of post trade processes for market participants, irrespective of which market the trade was executed on. Three significant changes to the NSX market model would occur as a result of gaining access to the TAS: A straight through digital process would be adopted for the management of post trade actions for participants, thereby removing present limitations of the manual DVP process currently required for NSX trades; An alignment of post trade processes and messages between NSX, ASX and Chi-X, thereby reducing costs and increasing efficiencies for participants; and The introduction of clearing to the NSX transaction flow, whereby ASX Clear will accept the counterparty risk for trades executed on the market, replacing the existing bi-lateral structure. The impact of these changes is expected to include: The entrance of new participants, including electronic retail brokers whose systems rely on STP capabilities, bringing with them an extensive increase in market coverage by NSX; Increase in the volume and size of transactions on the market; and Expansion of distribution models within existing NSX participants, where the demand for NSX trading has historically been constrained because of the existing manual processes and separation from expected market practice. NSX Managing Director and CEO, Ann Bowering said: “I am incredibly excited about what accessing the TAS would mean for the competitiveness of the NSX market model, and the enhancements in service offerings to our customers as a result."