Confusion About ASX, but Great Expectations From Australian Share Traders for Chi-X

Active Australian Share Traders Embrace New Market Entrant

Mar 25, 2011, 07:27 ET from CMC Markets

SYDNEY, March 25, 2011 /PRNewswire/ --The third and final section of the CMC Markets Share Trader Insight Survey: A Look Into What Drives Today's Share Traders was released today. Part 03, entitled 'Attitudes regarding the ASX,' focuses on investors' attitudes to the ASX.

Who owns the ASX anyway?

Looking at the ASX itself, it seems that many Australians engaged in share trading are not clear on who exactly owns the ASX. Only half are aware that it is a publicly listed company. A staggering 24% believe the exchange is owned by the Australian government, and 21% believe a 'member organisation' owns the ASX, while 5% believe it is owned by an unlisted private enterprise.

Response to Chi-X's entry to the market

It reveals that more than two thirds of Australians who are active share traders expect their broker to link in with Chi-X. In addition, the majority of investors informed about Chi-X's entry into Australian markets (55%) would be willing to change their broker if their broker does not link in with Chi-X.

"When Chi-X begins operations in Australia, it seems clear that traders will expect their broker to offer dealing through both them and the ASX. This is far from surprising, considering there isn't a trader around who doesn't want the best volume and price available," says David Land, Head of Analysis and Education at CMC Markets.

Recent ASX developments: for or against

We discovered that the positive feeling from traders regarding Chi-X does not extend towards the SGX merger, with 32% of traders being opposed to the SGX merger, while 32% remain neutral about the merger.

"It would seem pretty clear that the SGX takeover of ASX has fired up some emotion about an Australian company getting taken overseas. The numbers may suggest that some of the objection may be misplaced, with a large chunk of those surveyed not realising that the ASX is, in fact, a listed company," said Mr. Land. "It looks like we have a lot more education to do, even among experienced investors."

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The CMC Markets Group, a leading independent financial services provider, offers a range of investment products and investment tools including shares, options, listed managed investments, warrants, interest rate securities and Contracts for Difference (CFDs). Through our partnerships we can also provide access to managed funds and margin lending execution. In 2007 CMC Markets launched its broking service with the acquisition of Andrew West Stockbroking and CMC Markets Stockbroking is now one of the only non-bank aligned, online stockbrokers in Australia. CMC Markets' institutional partner Goldman Sachs owns a 10% stake in the company.

CMC Markets is a pioneer of CFD trading in Australia and a world leading CFD provider. With offices in London, Frankfurt, Dublin, Madrid, Vienna, Sydney, Tokyo, Toronto, Beijing, Auckland, and Singapore, CMC Markets represents clients in over 70 countries. The company was founded in 1989 and is regulated by ASIC in Australia. CMC Markets Stockbroking is a participant of the ASX Group.