Equity Market Structural Reforms

ASX reviews on a continuous basis the efficiency and effectiveness of its equity market structure and design. As part of this process ASX released a Market Consultation Paper – 'ASX Market Reforms - Enhancing the Liquidity of  the Australian Equity Market' (PDF 433KB). The consultation paper outline proposals to change certain aspects of the microstructure of ASX's equity market.

Following extensive consultation ASX has made a number of decisions regarding the structure of the equities market.  These changes are separate to the introduction of the CLICK XT™ for all markets although some of the changes will occur with the change to the new system.

The key decisions are:

  • Removal of broker numbers for the equity market (planned for December quarter 2005).
  • Change in the minimum price step for stocks priced between $0.50 and $2.00 from 1 cent to 0.5 cents (first quarter 2005).
  • Replacing the Undisclosed order type with an Iceberg order type (with the move to CLICK XT planned for March quarter 2006).
  • A trial of call auctions and market making for some mid and small cap stocks (further consultation to be conducted).
  • An increase in the minimum block special size for some stocks.

Full details of the decisions are detailed in 'Enhancing the Liquidity of the Australian Equity Market – Decisions on reforms' (PDF 206KB).

ASX Market Reforms - Enhancing the Liquidity of the Australian Equity Market

Related Publications

The following publications are additional references for ASX's Equity Market Reforms: