Question

1. Identification of listing requirements in both ASX and NSX and explaining which exchange has more stringent listing requirements 2 marks

2. Listing of indices in both ASX and NSX 2 marks

3. Explanation of importance of indices from investors point of view 2 marks

4. Identification of financial products and the subcategories 2 marks

5. Discussion of key features of the identified financial products together with comparison of risk and return between them 2 marks

6. Overview of the historical evolution of ASX 1 mark

7. Identification of industry categorization and number of listed companies in the ASX 2 marks

8. Academic writing, structure and referencing

Answer 1

1, Please see the below lisiting requirement for Both ASX and NSX (Both are stock exchanges in Australia):

Listing requirement	NSX	ASX
Fees for issuers with $10 million market capitalisation	$54,352 - Application fee	$75,338 - Initial fee
$16,714 - Annual fee	$26,376 - Annual fee
Additional fees are required to be paid when newly issued or restricted securities are to be quoted.
Issuer	Must be a corporation duly incorporated or otherwise established in accordance with the laws of a State or Commonwealth of Australia;	N/A
or
registered under the Act to carry on business in Australia.
Constitution	Must have a constitution that is consistent with the NSX Listing Rules.	Must have a constitution that is consistent with the ASX Listing Rules.
Minimum spread	50 security holders or more in the primary class of securities being issued.	300 securities holders in the main class that are not restricted or subject to voluntary escrow with a value of at least $2,000.
Free float	25% of issued capital held in the hands of the public (non -director hands).	20%
Requirement for prospectus	Yes, but if already listed on the Official List on the ASX then a disclosure document may not be required (fast track listing).	Yes, prospectus or product disclosure statement is required.
In specific circumstances, the ASX will accept an information statement.
Expected initial market capitalisation	At least $500,000	Please refer to Minimum asset test requirement below.
Minimum asset test	N/A	For a non-investment entity:
(a) net tangible assets of at least $4 million after deducting the costs of fund raising; or
(b) a market capitalisation of at least $15 million.
Minimum profit test	N/A	At least $1 million from continuing operations for the last three full financial years.

2, Please see the list of indices for ASX as well as NSX

NSX	ASX
NSX All Equities Index	Capitalisation indices
NSX All Agriculture Index	Fixed income indices
NSX All Community Index	Sector indices
NSX All Finance Index	Strategy indices
NSX All Investment Index	Volatility indices
NSX All Property Index
NSX All Resources Index
NSX All Technology Index
SIMVSE All Equities Index

3,

Regarding ASX The biggest stocks traded on the ASX, in terms of market capitalization, include BHP, Commonwealth Bank, Westpac, Telstra, Rio Tinto, National Australia Bank and Australia and New Zealand Banking Group.The major market index is the S&P/ASX 200, an index made up of the top 200 shares in the ASX. This supplanted the previously significant All Ordinaries index, which still runs parallel to the S&P ASX 200. Both are commonly quoted together. Other indices for the bigger stocks are the S&P/ASX 100 and S&P/ASX 50.

The NSX was founded in 1937 and in the past had listed as many as 300 local and regional companies. Some grew to be significant companies such as Golden Circle and Ricegrowers (Sunrice). It was reactivated in its present form in 2000 with about 70 listed companies

4, Please see the below key products.

ASX	NSX
Equity market	Equity market
Bond market	Bond market
Derivatives market	Derivatives market
Foreign exchange market
Funds management

5,

Risk is nothing but we are not knowing what we are doing both indices provides similar kind of services,

when coming to the risk part. Bond has less risk and low return, Coming to equity there is high risk followed by high return, there are coupe of startegy to reduce risk in both Stock exchanges

As derivative products are either used for gambling or used for Reducing the risk.

6,

The Australian Securities Exchange is Australia's primary securities exchange. It is owned by the Australian Securities Exchange Ltd, or ASX Limited, an Australian public company. Prior to December 2006 it was known as the Australian Stock Exchange, which was formed on 1 April 1987, incorporated under legislation of the Australian Parliament as an amalgamation of the six state securities exchanges. It merged with the Sydney Futures Exchange in 2006.In the past, ASX had an average daily turnover of A$4.685 billion and a market capitalization of around A$1.9 trillion, making it one of the world's top 16 listed exchange groups.

7,

Below are the catagorisation of Indices

Capitalisation indices

Fixed income indices

Sector indices

Strategy indices

Volatility indices

As of 24/04/2020, ACX has 2149 Listed companies.

8,

Reference is from ACX and NCX offical site.