Asia Pacific Exchange Limited (APX)
Formerly known as Australia Pacific Exchange Limited

APX is one of three groups operating a securities exchange in Australia with a market licence granted by the Australian Securities & Investments Commission (ASIC). APX operates a licensed securities market under the supervision of ASIC and is required by law to act fair, orderly and transparent at all times.

As a securities exchange, APX provides ‘listing’ facilities to companies and securities issuers as well as ‘trading’ facilities for stock brokers, traders and investors to buy and sell shares/securities.

The securities that can be traded on APX include: shares issued by companies, units issued by trusts and other pooled investment products as well as fixed interest instruments, such as bonds.

Background

Whilst APX was granted a stock exchange licence by ASIC in August 2004, the origins of the exchange date back some 8 years to the successful operation of the Exempt Markets (EM). During its life, the exempt markets generated over 5,000 trades and 163 million shares traded with a turnover value of approximately A$500million.

A number of S&P / ASX 300 companies listed on the Australian Stock Exchange (ASX), such as Sigma Company Limited, Sydney Futures Exchange Corporation Limited and SPC Ardmona Limited were all traded successfully on EM before moving to the ASX.

THE ROLE OF APX

As a securities exchange licensed by ASIC, some of the main commercial roles of APX include:

• Creating Capital Raising Opportunities for Corporate
  The Stock Exchange provides companies with the facility to raise capital for expansion through selling shares to the investing public.
• Creating Investment Opportunities for Investors
  As opposed to other businesses that require huge capital outlay, investing in shares is open to both the large and small stock investors because a person buys the number of shares they can afford. Therefore, the Stock Exchange provides the opportunity for both small and large investors to own shares in companies of their choice.
• Facilitate Company Growth
  Companies view acquisitions as an opportunity to expand product lines, increase distribution channels, hedge against volatility, increase their market share or acquire other necessary business assets. A takeover bid or a merger agreement through the stock market is one of the simplest and most common ways for a company to grow by acquisition or fusion.
• Mobilizing Capital for Investments
  When people draw their savings and invest in shares, it leads to a more rational allocation of resources because funds which could have been consumed, or kept in idle deposits with banks, are mobilized and redirected to promote business activities with benefits for several economic sectors such as agriculture and commerce and industry, resulting in stronger economic growth and higher productivity levels.
• Oversees Corporate Governance
  By having a wide and varied scope of owners, companies generally tend to improve on their management standards and efficiency in order to satisfy the varying demands of these shareholders, and the more stringent rules for public corporations imposed by public stock exchanges and the government. Consequently, it is alleged that public companies tend to have better management records and general Corporate Governance than privately-held companies.

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