ASX Grain Market Time for growth. Australian Grains Industry Conference Singapore

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1 ASX Grain Market Time for growth Australian Grains Industry Conference Singapore 10 March 2014

2 Disclaimer This material contains information only. The information is for education purposes only and any advice should be sought from a professional adviser. If you are seeking advice (including a recommendation or opinion) about a financial product you should consult an Australian Financial Services Licensee. To the extent permitted by law, no responsibility for any loss arising in any way (including by way of negligence) suffered by anyone acting or refraining from acting as a result of this material is accepted by ASX. This disclaimer extends to any private discussions or correspondence with the presenter of this information ASX Limited ABN

3 Key ASX Messages We are committed to creating a liquid grains market We have implemented important enhancements We are striving to be the complete risk management solution for buyers of Australian grain

4 ASX at a glance Market Capitalisation at 7 June 2013 (US$bn) ASX revenue mix CME 24.0 HKEx 18.8 ICE 12.7 BM&F Bovespa 12.6 Deutsche Boerse 12.4 NYSE Euronext 10.0 SGX 6.2 ASX 6.0 LSE 5.8 NASDAQ OMX 5.5 TMX 2.5 Source: Datastream Source: ASX Limited

5 The ASX Grain Market Deliverable Contracts Contract NSW Wheat Physical Grade (minimum) APW1 (10.5% protein flat price Mar 14) Track Market Newcastle & Port Kembla (NSW) WA Wheat Eastern Australia Feed Barley APW2 (10% protein flat price Mar 14) F1 Kwinana (WA) NSW, Geelong & Portland Australian Sorghum SOR Brisbane / Newcastle Eastern Australia Canola CS01-a NSW, Geelong, Portland & Port Adelaide

6 The Opportunity Significant room for growth in existing derivatives business Better meeting the needs of customers (domestic and international) Servicing the Asian dining boom Capturing global capital flows ASX services not limited to futures and options Over-the-counter (OTC) derivatives Collateral management Challenge Integration with global liquidity

7 Where do the trades occur? Source: Trading Technologies X Trader.

8 ASX plan to develop and grow grain derivatives FY14 FY14 FY15 Product enhancements Market structure changes Incentive schemes New Trader Incentive Large Volume Rebate Market Makers Client asset protection Market advisory committee Global customers and improved liquidity Industry training Market Data dissemination OTC derivatives clearing Niche Market Domestically Relevant Globally Relevant

9 Grain Market Initiatives More to do Products and liquidity Updated contract specifications (complete) New liquidity incentive schemes (released) New industry training programs (released) Market Structure Open interest accuracy (complete) New trading hours (complete) Risk Management Client asset protection (commencing July 2014) Market Advisory Committee (commencing Q2 2014) e.g. Grain holdings as collateral / OTC Clearing solution / Functionality Industry Collaboration international awareness & application

10 Client Asset Protection Enhancements available from July 2014 Current clearing model Net omnibus account Co-mingled positions and collateral Client ownership not identified at the clearing house MF Global Default (November 2011) New clearing model Amendments to Payment Systems and Netting Act (effective 19 July 2013) Enables ASX Clearing Participants to offer client protection choices Service features Segregation from other clients and the clearing participant Portability of positions and matching collateral in the event of default Phased implementation from July 2014

11 New Open Interest Rules Introducing the Close Out Day

12 New Trading Hours Servicing the Asia Time Zone Day Session Sydney Melbourne am 4.30 pm Tokyo Seoul 9.00 am 2.30 pm Singapore Kuala Lumpur Beijing Shanghai Hong Kong Manila Perth 8.00 am 1.30 pm Settlement as at 4.30pm close of Day Session. End of Trade Date. Night Session 5.00 pm 7.00 pm 3.00 pm 5.00 pm 2.00 pm 4.00 pm Jakarta Bangkok Ho Chi Minh 7.00 am pm 1.00 pm 3.00 pm Night Session activity is included and cleared as part of the following Trade Date.

13 Key ASX Messages We are committed to creating a liquid grains market We have implemented important enhancements We are striving to be the complete risk management solution for buyers of Australian grain

14 Next steps Understanding and applying ASX to hedge your Australian grain requirements Industry Training ASX workshop Explain the contract specifications / market framework / correlations with other markets Market Data History Australian Dollar / tonne Basis US cents / bushel Daily Activity Report Incentive Schemes New Trader Incentive Find a Broker

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16 Further information Paul Roberts Senior Manager Energy and Commodities Phone: Waqar Chaudry Product Strategist Energy and Commodities Waqar.chaudry@asx.com.au Phone: Dougal Hunter Manager Agricultural Derivatives dougal.hunter@asx.com.au Phone:

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