ASX reports 32% growth in futures trading, continues to curb dividends
Key Facts
ASX said in its annual general meeting address dated 22 October 2026 that total futures trading volume rose 32% year-on-year in the first quarter of fiscal 2027. Total cash market trading value increased 7% over the same period, according to the company. The trading update came at a meeting where the company revisited its fiscal 2026 results, previously presented in August, as it continued to fund capital requirements through lower dividends. Annual operating revenue reached A$1,254.6 million, compared with A$1,107.2 million in the previous fiscal year, according to the annual results presentation. Revenue grew 13.3% as the company prepared for further spending on technology upgrades and market infrastructure overhaul.
Underlying net profit after tax for fiscal 2026 rose to A$536.4 million from A$510.0 million, an increase of 5.2%, according to the annual results. Total expenses, however, grew faster than revenue, rising 21.1% to A$557.4 million from A$460.3 million. Reported net profit fell 3.5% to A$484.9 million from A$502.6 million, diverging from the trend in underlying profit. Interim results had shown operating revenue of A$602.8 million in the first half of fiscal 2026. The company compared that with revenue of A$541.9 million in the corresponding period, an increase of 11.2%. ASX shares closed 9% higher on the day of the annual results announcement in August, according to Reuters. The close followed intraday gains of as much as 13.3%, when the price reached A$62.9 per share.
On cash returns to shareholders, the fiscal 2026 dividend payout ratio was 75% of underlying net profit, according to notes accompanying the results presentation. The company had distributed 85% of underlying profit in the previous fiscal year. Total dividends for fiscal 2026 were 206.5 Australian cents per share. That included a final dividend of 104.7 Australian cents per share, according to the company's dividend history. The record listed the payment date as 21 September 2026, with a 2.5% discount under the dividend reinvestment plan. By comparison, the final dividend for the previous fiscal year was 112.1 Australian cents per share. That dividend was payable on 19 September 2025, before the proportion of earnings allocated to dividends was reduced the following year.
The dividend policy change comes against the backdrop of an Australian Securities and Investments Commission inquiry, which concluded that "ASX's focus on short-term financial performance and shareholder returns undermined its obligations to operate critical national market infrastructure". The company had acknowledged in its interim results statement that it had "not yet met the standards of excellence to which we aspire" in managing that infrastructure. According to the inquiry's final report, the company must accumulate an additional A$150 million in net tangible assets by 30 June 2027. The additional amount is measured against the level of net tangible assets on 31 December 2025. The company said in its financial guidance disclosure that the requirement would be funded through lower dividends and a discounted dividend reinvestment plan.
As part of its market systems upgrade, ASX launched the first phase of its replacement clearing, settlement and electronic registry system in April 2026, according to the regulator's market integrity newsletter. The next phase covers core settlement and subregister services, with implementation expected in 2029. The company's fiscal 2027 guidance includes total expense growth of between 18% and 21%, driven by technology upgrades, the business acceleration programme and growth initiatives. The company said in its annual general meeting address that it expected the lower payout ratio to remain in place until at least the fiscal 2027 interim dividend. It plans to announce its new strategy at a capital markets day in the first half of calendar 2027.