Sydney Stock Exchange (SSX) is a securities exchange in Australia with a market licence granted by the Australian Securities & Investments Commission (ASIC). SSX provides opportunities for growth oriented companies to raise the capital they need for expansion from a diversified range of domestic and international investors, especially from the Asia-Pacific region.
SSX operates its official list of securities as a Main Board, but it has the flexibility that a Second Board provides as well. SSX will provide and develop specialised markets in a number of sectors, including Mining, Oil & Gas, Real Estate (REITs), Hi-tech, Agribusiness, Servicing and growth companies.
As a securities exchange, SSX 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 SSX include: shares issued by companies, units issued by trusts and other pooled investment products as well as fixed interest instruments, such as bonds.
SSX’s corporate logo represents our vision to create a market for growth based on the principles of integrity and fairness built upon a strong foundation. The logo is composed of a swirling red expanding sun within the boundary of a black box. The swirling red sun represents the success, energy and vibrancy of companies listed on SSX. The expansion of the sun represents the growth of both our listed companies and the wealth of their investors. The black box represents the solid structure and foundation upon which the SSX market is built. The black colour is a symbolic representation of the depth of the ocean – a source of nurture, success, wealth, abundance and prosperity for all participants. The outline of the box represents the boundaries of the rules with which all participants must comply.
This combination will balance, synergise and harmonise the “Yin and Yang” in accordance with ancient Chinese philosophies and principles.
The Rhino represents SSX’s confidence, assurance, steadiness and sure-footedness. The Rhino’s heightened sense of hearing symbolizes SSX’s “We listen to you” approach to business.
SSX will act as a platform to bridge gaps, add value and benefit all relevant stakeholders. SSX aims to merge the best of both worlds: “East and West” and serve to fulfil our aspiration of “Bridging Asian and Australian Capital Markets”.
As a securities exchange licensed by ASIC, some of the main commercial roles of SSX 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.
SSX is seeking to differentiate itself from other exchanges in a number of ways. These include:
- Access to Asian (especially Chinese) capital – opening up new markets
- Attracting large number of investors from Asia (especially in Greater China) to trade on the SSX market
- Raising capital in Australia and Asia (especially in Greater China)
- Specifically targeting growth companies
- Adopting a multilingual approach (starting with English and Chinese) in the trading and information platform and in customer services as well
- Advanced trading system providing real time prices that is both easy to use and highly accessible to all market participants
- A multi-cultural team of executives who have a strong understanding of the workings of both Chinese and Western financial and capital markets
- High level of market transparency and high quality of services
- Flexibility in its listing rules (whilst still maintaining a very high level of accountability and rigour)
- Focusing on fundamentals (e.g. no short selling)
- Competitive listing fees