Which of these Sydney trading centres are the most expensive?
The Sydney Stock Exchange has announced a range of pricing adjustments in the wake of the global economic crisis, including a 40 per cent price drop on the top three floors and a 20 per cent hike on the lower floors of the main trading floors.
Sydney StockExchange chief executive Alex D’Aloisio said the changes would bring prices down and ensure that the exchange’s top floors were not the hardest hit.
“The main trading floor is experiencing a significant decline in value,” Mr D’Aroisio told AAP.
Mr D’Aboisio also said the price cuts on the floors of The Stock Exchange’s most popular trading areas would also reduce costs for the trading community.
“The floor levels of our most popular trade floors have also been cut in a bid to ensure that everyone is receiving fair value for their trades,” he said.
The changes are expected to bring the average annual profit on a Sydney Stock exchange exchange to around $2.7 million, according to the Australian Securities Exchange.
Market research firm Markit has also said Sydney Stock Exchanges’ profits have fallen by 15 per cent in the past year, due to lower trading volumes and the effects of the financial crisis.
It’s estimated that the average trading volume in the Sydney Stockexchange’s most frequented floors has fallen by nearly 90 per cent.
Sydney StockExchanges chief executive Mr Daboisio says it’s important to note that the changes will not impact all trading floors, but all trading floor areas will benefit.
He says the changes are intended to improve efficiency and minimise disruption to people’s lives.
As a result of the trading price drop, the Sydney Exchange has been able to bring its average annual earnings to $2,200 for the past three years, down from $2 of the $3,600 it had been earning during the same period last year.
In a statement, the Australian Exchange said: “The Sydney Stock exchanges management team has been working hard to ensure the Sydney trading floor remains competitive, whilst ensuring that the financial services industry can continue to flourish and benefit from an economy of growth.”
Auckland’s trading floor has also been hit, with the average yearly profit falling by nearly 15 per a cent.
Mr Dabiosio says he believes the changes to the Sydney stock exchanges trading floors will be a major success for the industry.
“We are committed to maintaining a high level of profitability and we are pleased that our trading floors have achieved this and have brought greater profitability to our trading clients,” he told AAP on Monday.
A spokeswoman for the Auckland Stock Exchange said the reduction in the prices of its most popular floors had brought its average earnings to about $2 million a year, down slightly from $3.3 million last year but up from $1.6 million a few years ago.
Ms Taylor said it was not yet clear if the changes had affected the profitability of other trading floors in the Auckland area.
She said the decision to reduce the price of a floor was not intended to negatively affect the profitability or value of other floors, nor was it a matter of whether a floor would continue to be the most popular.
However, she said the lower prices would help to lower the average cost of an average daily trade in the area.
“It’s important that the level of trade and value continue to rise as prices fall, which is what happens when a lower price is followed by higher prices,” Ms Taylor said.
Topics:business-economics-and-finance,markets,finance-and-“equity”,economics,trade-economy,business-news,markets-and/or-futures,australiaContact Sarah CooteMore stories from New South Wales