In September 2014 the Australian Securities Exchange (ASX) implemented a new process for the announcement of corporate actions (via online forms) and the automated capture of data contained in that announcement to facilitate straight through- processing (STP) for ASX and its customers.

For issuers, the use of ASX online forms for announcing corporate actions will become mandatory on March 22 2015. From this date the use of these forms is required to announce dividends/distributions, interest payments/interest rate changes, securities splits/consolidations and cash capital returns.

ASX has also confirmed its intention to shorten the settlement cycle to be in line with most major capital markets and extend its batch cut-off to 11:30 am in March 2016. This move will be closely coordinated with New Zealand’s stock exchange (NZX) since there are many stocks listed on both exchanges.

“Most market participants are of the opinion that the benefits will outweigh the initial cost,” says Andreas Scharbach, head of sales and relationship management banks and brokers Australia, BNP Paribas Securities Services, who adds that ETFs are gaining momentum in Australia.

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