History of ASX

A chronology of key events in ASX's evolution

1285 A Statute of Edward 1 authorises the licensing of stockbrokers in the City of London.
1720 The “Bubble Act” is designed to prevent incorporation without legislative authority.
1829 Matthew Gregson advertised that he had received permission from the Bank of New South Wales to trade in its shares.
1835 William Barton, father of Australia's first Prime Minister Edmund Barton, established himself as an "agent for the transfer of shares."
1840 Modern futures markets first develop in Chicago.
1844 Joint Stock Exchange Companies Registration and Regulation Act 1844.
1861 First stock exchange formed in Melbourne.
1862 English Companies Act 1862 - most of the colonies pass legislation modelled on this.
1871 Victoria makes provision for a new form of mining company - the no liability company.
1871 The Sydney Stock Exchange formed.
1882 Hobart Stock Exchange formed.
1884 Brisbane Stock Exchange and the Stock Exchange of Melbourne formed.
1887 The Stock Exchange of Adelaide formed.
1889 The Stock Exchange of Perth formed.
1896 Compulsory audit and annual presentation of financial statements is required following spectacular company failures in the land boom.  Controls introduced by Victoria are regarded as strictest in British Empire.
1901 Federation of the colonies to form the Commonwealth of Australia.
1903 First interstate stock exchange conference was held in Melbourne, at Melbourne Cup time. Melbourne, Sydney, Brisbane and Adelaide Stock Exchanges were represented.
1920s US Stock market boom and crash leads to comprehensive system of securities regulation in US.
1937 Formation of the Australian Associated Stock Exchanges (AASE).
1938 Publication of the first share price index.
1942 Price increases in shares of listed companies were limited by the Australian government.
1947 Open market conditions were re-introduced.
1960 The Sydney Futures Exchange begins as the Sydney Greasy Wool Futures Exchange.
1961-62 Each state passes a uniform Companies Act.  Revised uniform listing requirements become effective.
1967 Company Law Advisory Committee is established prompted by failure of finance companies.
1969 Mining boom.  Poseidon shares rose from 80 cents in July 1969 to $280 in February 1970.
1970 NSW enacts Securities Industry Act which introduces more elaborate provisions about establishing stock exchanges, regulating securities industry participants and creating new offences of false trading, market rigging and the making of false statements about securities.  Other States follow.
1971-72 Legislation on accounts and audit, disclosure of substantial shareholdings.
1972 National listing for all securities was introduced.
1974 Formation of Interstate Corporate Affairs Commission.  WA participates from 1 July 1975.
1975-76 Improvements of securities industry legislation.
1976 Australian Options Market commenced trading in call options.  First Australian regulation of futures is the Futures Markets Act 1976 (NSW).
1976-77 Appointment of first two “outside” Councillors to AASE Council
1978 Agreement between Commonwealth and States for a co-operative regime for companies and securities legislation.
1979 National Companies and Securities Commission Act 1979 (Cth).
1980 Companies (Acquisition of Shares) Act (Cth).  Australian Stock Exchange Indices (national price and accumulation indices) replaced Sydney and Melbourne Indices.
1981 Companies Act 1981 (Cth).
1982 Companies legislation based on co-operation between Commonwealth and State governments became effective.
1984 Deregulation of stock exchange membership and abolition of the fixed scale of commission.  Australia's first Second Board Market opened in Perth on 10 February.  Others followed.
1985 The Stock Exchange of Melbourne Limited established the Australian Financial Futures Market on 27 September.  On December 13 and 14, for the first time in 100 years of stock exchange history, all members of the six Stock Exchange Committees, together with the outside Councillors of the AASE, met under one roof.  They considered a paper entitled The Future Structure of Australian Associated Stock Exchanges and its Member Exchanges, which recommended the formation of a national exchange through the merging of all six AASE Member Exchanges.  These proposals were accepted and the agreement was subsequently ratified by the membership of all Exchanges
1986 Futures Industry Act and Codes of 1986 commence comprehensive regulation of futures.   Northern Territory becomes participant in co-operative regime and there is uniform law.
1987 Formation of the national Australian Stock Exchange (ASX) and National Guarantee Fund to amalgamate the six state stock exchanges and their fidelity funds.  October stock market downturn.  Launch of computer-based trading (SEATS) for limited range of ASX-listed stocks.  Senate Standing Committee on Constitutional and Legal Affairs concludes that Co-Operative Scheme should be replaced by comprehensive national legislation and that a single agency to administer it should be established.
 1988  10 millionth option on the Australian Options Market traded in June.
1989 Enactment of Corporations Act as a national law without the need for State co-operation.   Accompanied by Australian Securities Commission Act.  Formation of ASX Surveillance Unit in January.  Australian Options Market and the Australian Financial Futures Market were merged effective July 1.
1990 Several large companies fail.  High Court holds that s51(xx) of constitution does not allow Commonwealth to make a law for incorporation of trading or financial corporations.   Heads of Agreement to prepare uniform legislation.  All legislation to support National Corporations Law uniform legislative scheme is in place by 1 January 1991.   ASX enters into Memorandum of Understanding (MOU) re provision of information with SFE.  Closure of the trading floors and conversion of all stocks to SEATS trading from October.   Establishment of exchange traded warrants market  in January. 
1991 New national scheme includes restructured prospectus provisions and abandons checklist approach.  Corporations Legislation Amendment Act 1991(Cth) addresses insider trading.  The Australian Options Market moved its trading operations to the former Sydney equities Trading Floor.  The Australian Securities Commission (ASC) replaces the NCSC.  Report on mandatory disclosure by Companies and Securities Advisory Committee.
1992 ASX Derivatives Board formed.  ASC & ASX enter MOU in relation to referral of serious market matters.  T+5 settlement for ASX transactions.  Corporate Law Reform Act 1992 (Cth) - benefits to directors of public companies and related parties, voluntary administration introduced, insolvent trading further controlled, voidable transactions in winding up.   Second Board Markets closed in all States on 30 June.  Superannuation Guarantee Levy introduced in March.
1993 Fixed-interest securities added to SEATS.  Commencement of National Adjudicatory Tribunal.  ASC & ASX enter MOU concerning broker supervision.  The main Corporations Law amendments required for CHESS, an electronic clearing and settlement system,  passed by the Federal Parliament and proclaimed in June 1993.  All listed companies have their securities made available for settlement using ASX's Flexible Accelerated Security Transfer System (FAST).
1994 First stage of CHESS introduced, to lead to full automation in 1996.  ASC and ASX enter MOU concerning listed company supervision.  Corporate Law Reform Act 1994 (Cth) mandates continuous disclosure of material information by listed companies.  Indemnification of directors is also addressed.   A new derivatives market known as ASX Share Ratios  developed -  the first exchange-traded derivatives in the world to be based on the relative performance of a security.
1995 Major redevelopment of the SEATS trading system initiated. Electronic company announcement platform commenced. Stamp duty on share transactions cut in half.  First Corporate Law Simplification Act 1995 - simplified drafting, share buy-backs, proprietary companies, simplified company registers.  Odd Lot system abolished.  LEPOs introduced following ASX's successful court defence of their right to issue these products.   In August,  ASX launched its website www.asx.com.au.  ASX Listing Rule introduced requiring all listed companies to report on their corporate governance practices
1996 ASX Members vote to demutualise. CHESS phase two implemented. CHESS Units of Foreign Securities (CUFS) settlement introduced for foreign companies.  ASX and OCH enter MOU with IOSCO (International Organisation of Securities Commissions).   ASX enters MOUs with Korea Stock Exchange and Kuala Lumpur Stock Exchange.  ASX begins development of an electronic derivatives trading system - OM's CLICK.  In June ASX established a National Call Centre to provide a single point of toll-free telephone contact with ASX from anywhere in Australia.
1997 A phased cut-over to the Derivative Market's automated trading system (CLICK) began in October. ASX Demutualisation legislation, the Corporations Law Amendment (ASX) Bill, passed by Australian Parliament, effective 16 December.   SEATS 97 trading system upgrade began. Open interface rules developed.  Internet based Enterprise Market developed for smaller businesses.   ASC and ASX enter MOU on transfer of information about listed disclosing entities.   ASX admitted to Intermarket Surveillance Group.  Wallis Inquiry report into Financial System released in March. ASX enters MOU with Jakarta Stock Exchange, Surabaya Stock Exchange and Taiwan Stock Exchange.  Government established a Corporate Law Economic Reform Programme (CLERP).  10 year anniversary of formation of Australian Stock Exchange.
1998 Company Law Review Act 1998 (Cth) - further simplified drafting, memorandum and articles replaced, companies limited both by shares and guarantee no longer registrable, meetings, par value shares abolished, redirection of capital liberalised.  Managed Investments Act 1998 (Cth) - collective investment schemes.  Financial Sector Reform (Amendments and Transitional Provisions) Act 1998 - ASC became ASIC on 1 July with added regulatory powers over insurance and other financial offerings to the public.  ASX demutualised on 13 October and became a listed company on 14 October.  ASX shares listed at $4.10 and closed on the first day of trading at $4.25.  Derivatives trading fully automated and trading floor closed. Share registers fully decertificated. Investors gained internet access via brokers.   ASIC and ASX enter MOU concerning supervision by ASIC of ASX compliance as a listed entity.  ASX enters MOU with Philippine Stock Exchange.  Creation of separate ASX Investigations & Enforcement Division.
1999 Financial Sector Reform (Amendments and Transitional Provisions) Act (No 1) 1999 (Cth) - provides for transfer of regulatory responsibility for building societies, credit unions and friendly societies to ASIC.  Corporate Law Economic Reform Program Act 1999 (Cth) - introduces a business judgment rule, a statutory derivative action, relaxes regulation of share acquisitions aimed at takeover of corporate control, modifies compulsory acquisition rules, extends takeover provisions and managed investment schemes and enhances role of the Corporations and Securities Panel.  Also, changes fundraising rules and abolishes requirement to register prospectuses.  Restates functions of Accounting Standards Board and establishes Financial Reporting Council.  T+3 settlement replaces T+5. ASX Sydney moves to 20 Bridge Street. New clearing system (DCS) and rules for derivatives market with options and futures clearing capability in multiple currencies.  ASX also introduces a new capital adequacy regime (Rule 1A), third party clearing, a BLOX trial, and IPO Settlement in CHESS. ASX enters MOU with Thailand Stock Exchange and Singapore Stock Exchange.  ASX purchased 13 per cent stake in Austraclear.  Interest Rate Market introduced in November.
2000 ASX forms joint venture with Perpetual Registrars to form ASX Perpetual Registrars Limited (APRL).  ASX World Link established to provide the mechanism for Australian investors to trade in internationally quoted securities.  This includes a co trading link between the Australian and Singapore markets.    ASX signs MOUs with Tokyo Stock Exchange and Hong Kong Exchanges and Clearing.  ASX introduces Real Time Gross Settlement (RTGS), CHESS settlement for other markets and OCH settlement for other markets.  In November ASX announced the creation of a new entity, ASX Supervisory Review Pty Ltd to monitor and oversee ASX's supervisory activity.  ASX/Reuters Charity Foundation established in February.   In March ASX entered into 15 year agreement with Standard & Poor's Index Services.  In September ASX took a 15 per cent interest in BridgeDFS (later renamed IRESS Market Technology).

 2001

In March, as part of ASX World Link, a North American trading link became operational enabling Australian investors to trade, settle and hold approximately 200 securities quoted on NASDAQ, NYSE and AMEX.  Business Rule amendments were introduced to:  require more precise record keeping requirements;  to allow ASX to exchange information with complaints resolution schemes; and to enhance compliance responsibility of market participants.  Financial Services Reform Legislation was introduced to Parliament in April 2001 and passed in August 2001.  Under this legislation ASX's market participants will be subject to the new harmonised licensing regime applicable to all financial services providers.  It also increased the permitted voting power in ASX from 5 per cent to 15 per cent of issued shares.   Enterprise Market ceases operation on 30 April. Stamp duty on transactions in marketable securities abolished from 1 July. Modern clearance system for Government-backed securities introduced by Federal Parliament (Commonwealth Inscribed Stock Amendment Bill). The first managed funds on the Exchange's new trading platform for listed investment funds, including exchange traded funds (ETFs), were listed in July.  ASX-SGX co-trading link went live 20 December.  ASX acquires 50 per cent interest in investor relations firm Orient Capital.  ASX is successful in its application for futures market authorisation to trade futures products such as equity and index futures.   ASX Supervisory Review Pty Limited became operational in March.
 2002 ASX Futures Market launched in January.  'Principles of Good Corporate Governance and Best Practice Recommendations' published in March.  SFE Corporation Limited lists in April making ASX the only Exchange in the world to trade the securities of two listed Exchanges.   ASX made formal application to Government in July for approval to split National Guarantee Fund into separate capital components, one for fidelity purposes and the other for clearing support.   ASX Corporate Governance Council established in August to lead development of best practice governance standards and publish guidelines for all listed companies.  ASX introduced secure internet-based facilities for the mandatory electronic lodgement of company announcements.  Government Corporate Law reforms introduced in September.  ASX enters MOU with Shanghai Stock Exchange in September.  In November ASX announced its intention to form Australian Clearing House.  A century of historic company records provided to State Libraries in November.   ASX's online sharemarket classes became available at no cost from October
 2003 ASX enters MOU with Shenzhen Stock Exchange in September.  In May Promina Limited listed on ASX and became the world's largest listing in the financial year.  On 1 July ASX announced a strategic alliance with Aspect Huntley for the joint marketing and development of new and innovative market information products.  In association with Aspect, ASX launches a new text-based news service.  ASX's online options classes became available at no cost from February.
 2004 Market Integrity Division formed within ASX in January to review and evolve ASX's practices in market supervision as circumstances and expectations require. In June the ASX Board signed an agreement to replace the SEAT system with a new integrated system designed by Swedish company OM. This will further enhance Australia's place in capital markets by providing a single integrated electronic platform for equities and derivative products. An agreement was signed to implement a new surveillance system to replace SOMA.Australian Clearing House created out of the former Options Clearing House.  ASX acquired remaining 50 per cent of Orient Capital in February.  ASX launched world-first reporting code for biotechnology industry in April. ASX Grains Futures awarded the Ernst and Young Risk Management Award at the Rabobank Agribusiness Awards for Excellence 2004.  New record for options trading on ASX set in August - an average of 83,673 options contracts were traded each day, an increase of 21% over trading activity of August 2003.   Launch of S&P/ASX buy-Write Index on 1 July 2004.  Retirement of Managing Director and CEO Richard Humphry  formally announced 23 April.  Tony D'Aloisio appointed Managing Director and CEO effective 11 October.
2005 ASX and the Federal Government reached an in-principle agreement on the split of the National Guarantee Fund, freeing $70 million for transfer to ASX subsidiary Australian Clearing House. On 17 August ASX and Perpetual Trustees Australia Limited announced that 100 per cent of their joint venture company ASX Perpetual Registrars Limited would be sold to Pacific Equity Partners.  The sale was completed on 26 August.  On 25 October ASX and AusBiotech released the world’s first Code of Best Practice for Reporting by Life Science Companies.  SMARTS replaced SOMA as the Exchange’s market surveillance system.
2006  On 27 June ASX and the Financial Services Institute of Australia (FINSIA) launched a new training program to enhance listed product knowledge amongst the financial adviser community.  On 1 July ASX Markets Supervision Pty Ltd was created as a subsidiary of ASX to oversee ASX’s supervisory and enforcement responsibilities relating to the Operating Rules.  The merger of Australian Stock Exchange and the Sydney Futures Exchange, the first between two listed exchanges anywhere in the world, was sealed on 7 July.  Mr Robert Elstone, the Managing Director and Chief Executive Officer of the SFE, became Managing Director and Chief Executive Officer of the merged entity.  Two new real-time indices covering Metals & Mining and Gold were launched in August.  On 1 September ASX announced the sale of Orient Capital Pty Limited to Link Market Services Limited.  In October ASX replaced the SEATS trading system with the new CLICK XT platform which offers integrated trading for all cash equity and equity derivative products.  On 5 December Australian Stock Exchange Limited changed its name to ASX Limited, operating under the brand Australian Securities Exchange.
2007 On 23 April ASX commemorated its 20th anniversary with the publication of National Market National Interest, by Edna Carew, a history of Australia's securities markets, launched by Federal Treasurer Hon. Peter Costello. 
On 17 May S&P and ASX introduced two new Australian-only indices: the S&P/ASX All Australian 50 & the S&P/ASX All Australian 200, forming the Australian component of the Global 1200 index.
On 1 July ASX's upgraded Company Announcements Platform with colour function & enhanced searchability - CAPII  - went live.
On 2 August the ASX Corporate Governance Council released the Revised Corporate Governance Principles and Recommendations - the first revision since they were issued in 2003 and to come into effect 1 January 2008.
On 5 November ASX launched the world's first exchange traded Contracts for Difference (CFDs).
On 5 December S&P and ASX announced the renaming of LPTs to A-REITS (Australian Real Estate Investment Trusts.
2008 On 7 March ASX held its first international event in New York 'Small Caps Down Under' for ASX listed small and mid-cap companies to support and develop a platform for these companies to access international investors.
In March, ASX was recognised for the first time as an Employer of Choice for Women (EOWA) by the Federal Government's Equal Opportunity for Women in the Workplace Agency.
On 26 March ASX announced the establishment of a single peer review Disciplinary Tribunal that integrated the existing ASX, Australian Clearing House & ASTC Tribunals with the existing SFE Business Conduct & Market Practices Committees. The maximum fine for the most serious offences proved before the Tribunal was increased to $1 million.
In April, ASX was awarded 'Exchange of the Year' by the global derivatives-based investment products magazine, Structured Products, for "consistent innovation, market responsiveness, and for the breadth of initiatives [ASX] has brought to the listed structured products business".