5 Questions with Maurice Farhart of the Australian Securities Exchange

Maurice Farhart, ASX
  1. Our fixed income products trade on yield and not on price with pricing actual/365 resulting in ASX fixed income products having a variable tick value. Our Bond futures are cash settled at expiry and underpinned by a basket of bonds, rather than having a cheapest to deliver structure. Our Bank Bill futures are also cash settled at expiry, against three month BBSW. This is a recent change, whereas previously the contract was deliverable.
  2. At current yields and minimum bid/offer spreads, these products have a good sized DV01.
  3. Our market is all FIFO both in fixed income and index futures.
  4. We pride ourselves on providing an even playing field from an access perspective. Firms (such as TT have) can choose to co-locate in the ALC, our data center in Sydney, or connect via our PoPs in Chicago, London, Hong Kong or Singapore. All the cabling is equidistant and there are no participant tiers that get faster messaging.
  1. The pending launch of the 5 Year Treasury Bond future in late Q4 2020. The new contract will provide an additional liquidity point and hedging tool at the mid part of the curve allowing participants to manage their risk exposures in a more effective manner as well as providing additional spreading opportunities. Further details on the product specification and listing can be found here.
  2. The recent launch of ASX DataSphere. DataSphere is a data science platform that brings together a community of data providers, analytics experts and insight seekers. More information can be found here.
  3. Our replacement of CHESS (the Clearing House Electronic Subregister System) with a system based on distributed ledger technology. CHESS is the system that underpins the post-trade processes of Australia’s cash equity market. I don’t think it’s an understatement that the whole world is keeping a close eye on how ASX is bringing this cutting edge technology to the financial markets and we’re of course excited about our progress and the possibilities for additional applications.

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Trading Technologies

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