Australian Stock Exchange History
The Australian Stock Exchange, now known as ASX Group, is the world's eighth largest stock exchange. Its origins trace back to the mid-1800s. The exchange started as an auction-based call system and has evolved into a very sophisticated computerized trading exchange that encompasses a variety of security types.
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Inception - 1937
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Melbourne gave birth to Australia's stock exchange in 1861. In the years to follow, exchanges were launched in Sydney (1871), Hobart (1882), Brisbane (1884), Adelaide (1887) and Perth (1889). A mining boom (starting with the gold rush in 1851) saw a number of regional exchanges appear, but with the mining bust, these exchanges disappeared or merged with the larger regional exchanges. In 1937, the exchanges created the Australian Associated Stock Exchanges (AASE). The AASE set some common ground rules for all the exchanges. The next year, Australia's first stock exchange index was created.
1965: A Milestone
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The Sydney Greasy Wool Futures Exchange (SGWFE) was launched in 1960. A future is a contract to buy a commodity or financial product at a specified price at a specified future date. In 1965, the exchange had become the world's largest. The trading floor gave way to 24-hour computer trading in 1999. Although a separate exchange from the stock exchange, the futures exchange company did merge with the ASX in 2006.
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Take a SEAT
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In 1987 the six regional exchanges amalgamated into a single stock exchange, the Australian Stock Exchange (ASX). In this year, the Stock Exchange Automated Trading System (SEATS) was introduced. By 1990, the trading floor was closed and all trading was done using SEATS. SEATS was a replacement for the "post" system in which trading information was recorded on posts (like chalk boards) in chalk by "chalkies" employed by the stock exchange.
A History of Landmarks
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Throughout its history, the ASX and its predecessor companies have been a world leader in a number of different ways. In 1989, the futures exchange was the world's first to offer extend-hours computer trading. In 1993, the futures exchange launched the world's first overnight options on futures, a sophisticated financial derivative. In 1999, the futures exchange was the first Asia-Pacific Exchange permitted to establish computer trading terminals in America.
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References
- Photo Credit stock exchange image by Christopher Walker from Fotolia.com
