ASX logs best day in six years as volatility-driven trading boom lifts profit

By Rajasik Mukherjee and Nikita ‌Maria Jino

Aug 13 (Reuters) - ​Australian ​stock exchange operator ASX posted a higher annual underlying profit on Thursday, helped by robust trading activity in volatile global markets, sending its ‌shares to their strongest session since March 2020.

The stronger earnings come ⁠as ASX works to rebuild trust after months of intense regulatory scrutiny over a string of operational ‌failures, and a downgrade by ‌ratings agency S&P.

Regulators have questioned its management of critical market infrastructure, prompting increased investment in technology upgrades and system resilience.

The bourse operator said global market volatility ​bolstered trading activity and demand for post-trade services during the year ended June 30. That helped its key markets division log an 18.6% rise in revenue, ⁠with futures and options volumes up 14.4%.

"The second half of FY26 saw exceptionally active and volatile markets, driven ​primarily by global events," ASX said in a statement.

"ASX recorded its highest month of futures trading volume ever and the second-largest equities ​trading day ever by number of executed trades."

Annual ‌underlying net profit after tax rose 5.2% to A$536.4 million. The company declared a final dividend of 104.7 Australian cents per ⁠share.

Total expenses rose 21.1%, driven by increased spending on technology modernisation, additional technology capabilities, and costs associated with a corporate regulator inquiry, but were within the guidance range of 20%-23%.

The ⁠bourse operator spent heavily on its Clearing House Electronic Subregister System, or CHESS, clearing platform despite ​several outages and a scrapped overhaul.

Shares of ASX closed 9% higher after rising as much as 13.3% to A$62.9 in their biggest intraday percentage jump since late October 2010.

"ASX is moving beyond ‌the period of intense regulatory scrutiny, with a new CEO starting next month and the capital and technology investment in place ‌to execute the turnaround strategy," said Greg Smith, investment specialist at Generate KiwiSaver.

ASX has ⁠tapped Euronext's Anthony Attia as its ‌next chief executive, opting for ​an international appointment over an internal candidate to repair its damaged reputation.

($1 = 1.4158 Australian dollars)

(Reporting by Rajasik Mukherjee in Bengaluru; Editing by ‌Subhranshu Sahu)

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