ASX gears up for fintech era as data foundation for financial services industry
The Australian Securities Exchange will push ahead with attempts to establish itself as a global technology pioneer, despite criticism of its governance, with its operations boss pledging to balance risk with the flexibility required to thrive in the fintech era of blockchain and artificial intelligence. Speaking to The Australian Financial Review following the release of a review by the Australian Securities and Investments Commission into its technology practices, ASX chief operating officer Tim Hogben said an ongoing technology improvement program was already bearing fruit and that the exchange was outpacing global peers in opening up its data for customers and startups. The ASIC report had originated from a costly outage in […]
ASX pushes back the start date for its blockchain
ASX has pushed back the “go live” date for its blockchain to clear and settle the Australian equities market by around six months, after market participants expressed concerns about meeting an ambitious timeline given the complexity of the technological change. Market players used a consultation process to express “a strong interest in better understanding the potential benefits that a DLT [distributed ledger technology]-based system can offer”, ASX said in a new “scope and implementation plan” for its replacement of the CHESS system. Brokers and investors want as much time as possible to get their heads around the technology, and to determine what investment spending will be required to connect with […]
BetaShares to launch three new ETFs to the ASX
The new ETFs will track international companies and offer exposure to blockchain and artificial intelligence technologies. Australian exchange traded funds (ETF) manager BetaShares has today announced its plans to launch three new ETFs on the ASX. The ETFs will track international markets and will provide exposure to new technologies such as blockchain and artificial intelligence (AI). The three new ETFs are BetaShares Asia Technology Tigers ETF (ASX:ASIA), BetaShares Global Blockchain Innovators ETF (ASX:BLOK) and BetaShares Global Robotics and Artificial Intelligence ETF (ASX:RBTZ). Unlike a listed investment company (LIC), which has fund managers actively picking stocks in an attempt to beat the market, ETFs simply mirror the performance of a particular […]
After CBA scandal, Australia’s regtech sector is ready for take-off
The local regtech scene is ready for take-off. There were two indications last week that regulatory technology’s engines are revving up. One was the corporate regulator securing an extra $6 million in funding from the federal government to market Australia as a global centre of regtech excellence. The Australian Securities and Investments Commission chairman James Shipton is on board with the potential for new technology to help regulated entities meet their complex legal obligations. The second was the filing of a prospectus by a promising Sydney-based regtech start-up known as Identitii. Based in a terrace house in Potts Point, Identitii plans to list on the ASX in September, with the […]
Can Afterpay’s magic run continue?
As Elon Musk and Tesla have shown us, when dizzy valuations and high short interest collide, the results can be spectacular. If the Australian stock market has a battleground stock to rival Tesla it is the buy now, pay later juggernaut Afterpay, which has doubled to a market capitalisation of over $3 billion in just six weeks. In that time, the shorts have been decimated as Afterpay successfully kicked off its US adventure. As it stands, Afterpay which closed on Friday at $14.57 is now valued at 100 times forward earnings and at 50 times based on fiscal 2020 earnings forecasts. So is the run done? Not even close, if […]
ETFs could be the ticket to portfolio diversification
One of the major advantages of an exchange traded fund is the ability for investors to gain instant diversified exposure, writes State Street Global Advisors’ Meaghan Victor. With one trade, ETFs can provide investors with the easiest way to achieve instant access to a broad base of companies and stock markets across different industries and even countries. The hunt for diversification Without a doubt, diversification has been a driving force behind the massive adoption of ETFs both in Australia and abroad. In fact, it could be said that in the age of the ETF, well-informed investors are learning what institutional investors have known all along. Asset allocation, not security selecting, […]
Zip targeting $1b of sales and 1m customers
More than half a billion dollars of sales went through credit card disrupter Zip Co’s payment system over the latest financial year, more than twice the volume of the previous year but only a quarter of that spent on competitor Afterpay. But as the popularity of “buy now, pay later” offerings continues to surge among Millennial shoppers, Zip – of which Westpac Banking Corp owns 17 per cent – is targeting $1 billion of sales over the coming year. “We are only just beginning and are well positioned for a bumper 2019 financial year,” said CEO Larry Diamond. Zip announced a $1.2 million loss at the cash earnings level for […]
OFX’s UK e-money licence shows up relatively sluggish Aussie fintech laws
ASX-listed online foreign exchange provider OFX will issue a trading update alongside its annual general meeting on Tuesday, and it is part of its aspirations to be a fintech player of global scale. A central element to this vision is the ability to expand its range of payment services. And so its announcement last week that it has acquired an “e-money licence” from the Financial Conduct Authority, the UK regulator, was significant for OFX (formerly known as OzForex). It also reveals how progressive UK regulators are about encouraging fintech innovation in the payments system. Ride sharing company Uber applied for an e-payments licence in the Netherlands in March. The regime […]
