The Australian Stock Exchange has evolved into one of the world's largest asset markets by utilising modern technologies and legislation to expand its client base. To see how this happened, let's have a look at seven events that spurred the development of the Australian Stock Exchange into one of the world's largest asset markets.
The Australian Stock Exchange's Basic Structure Is Established in 1937:
The Australian Stock Exchange's basic structure was established in 1937 by the Australian Associated Stock Exchanges as part of the overall effort to formalise the trading activities of the local stock markets that were established in Australia’s state capitals. These formalisation activities developed the basic rules companies must follow today to list their stocks on the Australian Stock Exchange. They also developed the first rules that governed how Australian brokerages used telephones and telegraphs to conduct stock trades.
The First Formal Share Price Index Is Published in 1938:
This listing appeared in an Australian business magazine after it was published by most of Australia's leading newspapers. It offered investors a chance to find updated values for stocks that were typically omitted from many local newspapers.
The Poseidon Mining Bubble of 1969 Spurs the Creation of Australia's Modern Securities Legislation:
The Poseidon bubble was a spurred by the discovery of huge nickel deposit in Western Australia. It caused Australian's most popular mining shares to soar and fall in value very quickly. These wild price changes prompted federal regulators to make the recommendations that were used to create the basic legislation that is used today to regulate the activities of the Australian Stock Exchange.
The Modern Australian Stock Exchange Is Established in 1987:
The modern Australian Stock Exchange that is in operation today was created on 1 April 1987 as an incorporated entity by legislation that was passed by the Australian Parliament. The legislation created a formal union amongst the six local stock markets that comprised the Australian Associated Stock Exchanges Group. It also spurred the formation of the modern trading environments that are used to trade stocks in Australia.
The First Digitised Trading Platform Is Established in 1987:
The first digitised trading platform for trading stocks was established in 1987 by the Australian Stock Exchange. It eventually replaced the chalkboards and verbal auctions that were used to trade stocks on the Australian Stock Exchange. It also spurred the creation of the modern digitised trading environment that is used to complete trades in the Sydney Futures Exchange.
The Australian Stock Exchange Merges with the Sydney Futures Exchange in 2006:
The Australian Stock Exchange completed a merger with the Sydney Futures exchange in 2006 that enabled the two groups to use modern computer technologies to create one of the world's largest digitised trading environments for stocks and stock futures. Many global financial experts welcomed the move because it enabled the two groups to offer more services to Australian investors and brokerage houses. As a result, the merger is considered by many Australian financial experts to be one of the most important milestones in the development of Australia's asset markets.
For more information about these milestones, please visit the National Museum of Australia's exhibits that are devoted to teaching visitors about Australia's unique economic history. These exhibits are located near the museum’s main exhibition area.
This post comes from the Australian Bullion Company, a website that facilitates the buying and selling of gold bullion.
