"CK - have you head about other companies looking into moving on ASX's turf (don't remember their names but they are looking at dealing with mainly fund managers which apparently a/c for 30% of the trades)."
From what I read in the press, it was a push by the NZSX, supported by some local brokers. In any event, the cash equities trading activity accounts for less than 1/3 of the ASX's revenue, so we are talking about 1/3 of 1/3 of business which is low margin, as big players already receive volume discounts. But at the end of the day, most trading activity will require the type of clearing and counter-party risk insurance which the ASX provides.
The ASX also derives a large part of its revenue from listing fees and the derivatives business which is already as big as equities and growing, with new products sych as CDF's being launched.
The 2007 Annual Report has just come out. Its worth a read.
CHO Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
