ASX trade is the trading platform of Australia which provides access to Centre points, auctions, and Lit Markets. ASX trade is ASX’s cash market trading platform that is ultra-low latency and is based on NASDAQ OMX’s Genium INET system.
ASX trade match is also known as the cash market lit order book which supports various types of orders giving flexibility to the participants. Moreover, the trade match extends control to the participants in the way they want to trade.
ASX centre point is the largest anonymous matching system in Australia. It offers advanced order types, protection from the leakage of any kind of information, discovering the natural block liquidity and is designed to increase the efficiency of the price improvement.
ASX trade-sweep order types provide easy access to both trade match and centre point in an efficient manner.
ASX trade is efficient as it supports the off-market trades which are undertaken by ASX participants. It is also known as the ASX trade reporting facility, also termed as TRF.
Following are the key products that are traded in the ASX trade:
ASX’s proprietary trading platform is ASX trade24 which provides access to the products that are listed on the ASX trdae24 market to the customers. The products include – interest rate futures, interest rate options, equity futures, equity options, agricultural futures, agricultural options, energy futures and energy options.
ASX trade24 provides the most liquid and established derivative products to the traders and investors. The platform also facilitates block trade and exchange-for-physical functions.
ASX addresses the perspective that their customers have different needs in terms of the speed and nature of access to the ASX market. Therefore, ASX offers various technical services to extend access to liquidity to all types of customers who are located within Australia or globally. The technical services include –
The ASX technology is reliable, fast one-stop shop that establishes a connection between the licensed Australian markets.
ASX’s lit market provides access to the largest liquidity source of Australia and during normal trading hours, it provides the service of continuously matching in the limit order book in time/price priority.
Points are built purposely to provide price improvement for all the domestic and international participants. It is one of the biggest dark market matching systems.
ASX centre points provide the feature of meaningful price improvement, true diversity (platform is open to all types of trading participants such as retailers. Long-term investors, wholesalers and so on), high amount of liquidity (delivers fill rates) and greater protection (no information leakage).
In a concentrated event, the ASX auction platform delivers transparent single-price discovery.
A trade reporting facility (TRF) is provided by ASX to support the recording of all administrative and off-market trades conducted by the participants. The trade reports are validated by the ASX as per the ASIC Market Integrity Rules.
TRF supports the following report types –
Unintentional crossing prevention (UCP) is a service provided in ASX trade, but the service is optional. The service can prevent on-market executions, that is, prevent trades which would not result in a change in the ownership of the asset.
A trader can make use of the UCP by specifying the crossing key when submitting the order to ASX trade. The crossing key is used to identify the beneficial owner or trader. A booking report is created by the UCP functionality when the two orders have the same crossing key. Without UCP, the orders would have matched.
Market phases UCPs are available during the action phases and continuous trading. Product UCP s are available in the cash market products, only for the orders which are entered with OUCH single and MO1 order entry transactions. The fee for UCP is 0.10 basis points, exclusive of GST.
It is essential that all the orders which are entered on ASX trade should have a price except for orders at best and orders at market. Both of these orders are converted to a limit price once they enter into ASX trade. The prices are affected by the price steps.