Australian stock exchange operator ASX has received a welcome lift from stronger trading activity after a difficult period for the company. Higher volumes across its cash and derivatives markets helped underlying annual profit rise 5.2% to A$536.4 million in the year ended June 30. The improvement comes as ASX works to rebuild confidence following operational failures, regulatory scrutiny and a credit rating downgrade earlier this year.
Trading activity gives ASX earnings a boost
ASX benefited from a busy year in financial markets as investors responded to changes in interest rates, economic data and geopolitical risks. Greater market uncertainty tends to encourage investors to adjust their forex trading positions more often, increasing activity across shares, futures and other financial products.
That helped ASX's markets division increase revenue by 18.6% during the financial year. Futures and options volumes also rose 14.4%, according to the company's full-year results reported in August. ASX shares jumped 9% after the results were released, marking their strongest one-day gain since March 2020. This strong trading continued into August as ASX's latest monthly figures suggest activity remained healthy at the start of the new financial year.
The average daily number of cash market trades increased 22% in August compared with the same month in 2025. Average daily on-market trading value rose 11% to A$7.93 billion, while total cash market value for the month reached almost A$200 billion.
The derivatives market recorded an even bigger increase. Average daily futures volume was 26% higher than a year earlier, while options on futures volume rose 60%. ASX handled about 15.8 million futures and options on futures contracts during August.
Stronger results come during a difficult rebuild
The better earnings arrived after years of operational problems attracted increasing attention from Australian regulators. ASIC launched an independent inquiry into ASX in 2025 after what the regulator described as persistent issues and operational failings. The final report, released in April 2026, identified problems with governance, risk management and the way ASX managed critical market infrastructure. ASIC said the exchange needed substantial change to restore confidence.
One of the biggest concerns has been ASX's handling of technology projects and market infrastructure. Problems with its long-running CHESS replacement project had already raised questions about the exchange's ability to deliver major system upgrades. Other operational incidents added to those concerns.
The inquiry went further, finding that ASX's focus on shareholder returns had at times come at the expense of the resilience of its critical infrastructure. It also found weaknesses in governance and said risk management practices needed to become more firmly embedded in the business. That history helps explain why the latest profit figures were watched so closely. ASX needs stronger financial performance to support investment in its systems, but it also has to show regulators and market participants that the problems behind earlier failures are being fixed.
S&P downgrade showed how serious the concerns had become
The pressure on ASX became more visible in April when S&P Global Ratings downgraded the company's issuer credit rating. S&P lowered ASX's rating from AA-/A-1+ to A+/A-1 after the ASIC inquiry raised concerns about governance and risk management. The ratings agency pointed to issues including trading outages, problems with the CHESS replacement project and other operational failures.
A credit rating gives investors an assessment of a company's ability to meet its financial obligations, and a downgrade does not mean ASX is in immediate financial trouble. In this case, however, it showed that the operational and governance problems had become serious enough to affect how an outside ratings agency viewed the company.
S&P later changed ASX's outlook to stable from negative and said the exchange was likely to retain its strong position in the Australian market. Still, the agency warned that further deterioration in risk management could put additional pressure on the rating.
A new CEO takes charge
ASX is also starting its next phase under new leadership. Anthony Attia took over as managing director and chief executive on September 1, replacing the interim leadership that had been running the company since Helen Lofthouse's departure.
Attia spent close to three decades working in exchange and market infrastructure businesses. His previous roles included senior positions at Euronext, where his work covered trading, clearing, technology, custody and settlement.
He takes charge at an important point for ASX. Trading activity is healthy and earnings have improved, but the company still needs to prove that its technology and governance reforms are working.
Trading momentum gives ASX room to rebuild
ASX is starting the new financial year with considerably more trading activity than it had a year ago. Higher cash market volumes and a strong rise in futures trading have supported earnings and given the exchange some financial momentum.
The bigger test is what ASX does with it. Regulators are looking for lasting improvements in governance, risk management and market infrastructure after years of problems. The S&P downgrade also showed that those concerns have consequences beyond regulatory criticism.
For now, strong trading is helping ASX at a useful time. Continued market activity can support revenue and help fund the technology and operational changes the company needs. Turning that financial momentum into restored confidence, however, will depend on ASX showing that the failures behind the recent scrutiny are being properly addressed.
