SYDNEY, July 24 The Australian Securities Exchange Ltd said on Thursday it will cut fees on interest-rate futures and over-the-counter (OTC) clearing businesses for the first time in more than ten years in a bid to boost trading volumes and to compete better with rival bourses.
The new fees, effective Oct. 1, will lead to potential savings of 67 percent, or 60 cents per trade, for customers who deal in more than 2 million opening or closing interest-rate future transactions and clear more than A$100 billion OTC interest-rate swaps in a quarter.
ASX said it will also provide OTC clearing fee discounts of as much as 20 percent for those clients that meet the highest clearing thresholds.
Derivatives are the largest contributor to ASX revenue, accounting for A$197 million ($186 million), or 32 percent of total ASX revenue, in fiscal 2013. Within the derivatives business, interest-rate futures account for the majority of traded volume.
Its derivatives revenues would have fallen by about A$17 million if the changes were implemented in the year-to June 2014, it said.
The exchange-traded interest-rate futures market has grown at a compound annual growth rate of more than 7 percent over the last decade, ASX said.
At 0106 GMT, ASX shares were down 0.14 percent compared with the benchmark S&P/ASX200 index which traded 0.11 percent higher.
($1 = 1.0590 Australian Dollars) (Reporting by Swati Pandey; Editing by Kenneth Maxwell)