Explore easier ways to trade with ASX

At ASX, we are committed to the Australian grains industry. This means working closely with our customers and industry represenatives to build and deliver the right products and services to help grow the market. Recently we have made some changes, making it easier to do business with ASX:

1. Lower fees

To reduce the overall cost of execution for our grains customers and make trading more accessible, ASX reduced our trading fees by 20% from AUD$2.50 to AUD$2.00 per side. More information: Grains Fee Reduction

2. Increased flexibility

We have reduced the minimum Block Trade size, enabling customers to bring smaller trade parcels through ASX and register these trades for clearing with the exchange. This increased flexibility not only makes it easier to trade via ASX, it also offers our customers enhanced portection for their business, which would otherwise be conducted off market.

3. Real-time price discovery

We are readying to launch ASX Grains Market View, a dedicated website which will report ASX Grains trades and prices in real time, enabling more efficient price discovery for all grains customers. This website will also provide a view of forward pricing activity, enabling users to see exactly what the market is doing, at the point in time it is happening. Customers will also be able to register to receive instant email notifications for Block and Exchange for Physical (EFP) trades (once trades have been accepted by ASX).

4. Enhanced customer protection

We have also been working with Australian regulators and local Clearing Participants to develop the ASX Customer Protection Model to support the Client Clearing Service and create a higher level of customer protection in two key areas:

  1. Account Segregation - the Model introduces the Individual Client Account (ICA), alongside the Client Omnibus (or traditional 'pooled') account, offering customers a choice of clearing accounts. The ICA structure segregates an individual customer's gross positions and associated collateral value from those of the Client Omnibus account. ASX is also currenlty working to extend the protection afforded under the ICA structure to include identification and protection of excess customers' collateral (scheduled for launch second half 2015).
  2. Account Portability - The Model affords further protection to those customers who opt for an ICA account, by offering the right to transfer ('port') an individual customer's positions to a named alternate clearer, if their current clearer defaults, where the client has satisifed certain porting conditions within the applicable porting window. If porting cannot occur, ASX will terminate the contracts in the ICA and return any remaining collateral value to the customer.

Trading futures and options

Futures and options contracts provide traders and the market as a whole with a number of important benefits. Strategies involving derivatives can broadly be described as either hedging strategies or speculative strategies. The benefits and risks of a derivatives strategy may differ depending on your personal objectives. Benefits of exchange traded derivatives markets include:

Hedging benefits

  • Transparent price discovery
    • An exchange traded market is a public forum
    • Real-time market data is available on a subscription basis through vendors
    • Prices reported via this website are on a 20 minute delay
    • A summary of the ASX Grains market is also available in the Daily Activity Report
  • Anonymous marketplace
    • You can participate in the futures market and delivery process without the need to disclose counterparty identities
  • Manage price risk
    • Manage your risk exposure via offsetting derivatives positions
    • Hedge against commodity price risk and take greater control over the price you either receive or pay for the commodity being produced or consumed
  • Manage counterparty credit risk
    • ASX agricultural derivatives are centrally cleared by ASX Clear (Futures)
    • The clearing house manages the financial integrity of the market by way of managing the respective clearing participants within the market
    • The financial integrity of the market is managed through the daily settlement process and collection of margins as well as monitoring market volatility
  • Manage basis risk
    • There is a strong correlation between ASX and underlying markets for Australian agricultural commodities
    • As such, the basis risk (the risk that the hedge does not perform in the same fashion as the underlying commodity being hedged) is reduced
  • Manage production/consumption risk
    • ASX Grains options provide growers with the flexibility to hedge price risk without having a production obligation
    • ASX Grains options provide consumers with the flexibility to apply simple options strategies that do not create a consumption obligation
  • Manage foreign exchange exposure
    • ASX Grains contracts are priced in Australian dollar terms
    • For Australian users, there is reduced foreign exchange risk

Investment benefits

  • Generate alpha
    • If you are an investor seeking direct investment in alternative asset classes, futures and options over commodities such as wheat and barley may provide you with opportunities to improve returns or diversify your investment portfolio.
  • Trade relative value spreads – time, quality, geography
    • ASX Grains contracts enable traders to trade Australian origin grain against global grain derivatives
    • Trade your view on price trends
    • CFTC approved