The Australian Securities Exchange and LSEG have entered into an agreement to modernise the trading infrastructure supporting ASX 24, the derivatives market that hosts futures and options linked to interest rates, equities and commodities across Australia and New Zealand.
The upgrade will introduce a new trading platform developed by LSEG Markets Technology, with the stated goal of improving performance, system resilience and operational reliability as derivatives markets become more technologically demanding.
ASX 24 is a central venue for derivatives trading in the region and provides products used by financial institutions, asset managers and corporations to manage interest rate exposure and other market risks.
The exchange said the infrastructure project represents a long-term investment in the technology underpinning Australia’s derivatives market.
Derivatives exchanges depend heavily on high-performance trading systems capable of processing large volumes of orders with minimal latency.
Trading platforms must handle continuous order entry, price discovery and risk management functions while maintaining stability even during periods of intense market activity.
According to the announcement, the new platform will focus on increasing system capacity, reducing operational risk and enabling faster response to evolving market requirements.
LSEG Markets Technology will provide the software infrastructure used to match orders and manage market activity within ASX 24.
The companies said the platform will be engineered to support low-latency trading environments where participants rely on rapid order execution and stable system performance.
The upgrade will also support future product development within the derivatives market.
ASX 24 serves as the primary venue for trading Australian and New Zealand interest rate futures and options.
These products allow banks, asset managers and corporations to hedge exposure to changes in interest rates and other financial variables.
The market also includes equity index derivatives and commodity products used by trading firms and institutional investors.
One of the distinctive features of ASX 24 is its extended trading schedule.
The exchange operates some of the longest trading hours among derivatives venues, allowing participants across multiple regions to trade Australian markets outside local business hours.
This extended schedule attracts participants from Asia, Europe and North America seeking exposure to Australian interest rate markets.
Maintaining stable trading infrastructure is therefore essential for global market participants that rely on continuous access to the platform.
LSEG Markets Technology develops infrastructure used by exchanges and market operators around the world.
Its technology products support trading systems in several markets, including Brazil, Qatar, Argentina and Singapore.
These platforms handle order matching, market surveillance, connectivity and other functions required for electronic trading.
Exchanges frequently upgrade their trading systems to accommodate growing order volumes and more sophisticated trading strategies.
Technological competition among trading venues has also intensified as exchanges seek to attract liquidity and maintain reliability under heavy market activity.
LSEG said its technology suite is designed to operate in demanding environments where performance and resilience are critical.
Bruce Kellaway, global head of LSEG Markets Technology, said the partnership with ASX reflects the importance of stable infrastructure in derivatives markets.
“ASX 24 plays a vital role not only in Australia but across global derivatives markets,” Kellaway commented.
“We are proud to partner with ASX in delivering next-generation trading infrastructure that enhances resilience, strengthens performance, and enables innovation.”
Derivatives markets continue to expand as financial institutions use futures and options to manage risk and express investment views.
Interest rate derivatives in particular play a key role in financial markets because they allow participants to hedge exposure to changes in borrowing costs.
As central banks adjust monetary policy and financial markets respond to macroeconomic developments, trading activity in interest rate products can increase significantly.
Exchanges must therefore maintain infrastructure capable of handling surges in trading volume and rapid changes in market conditions.
The ASX said the platform upgrade will allow the exchange to expand its product offering and respond to evolving participant needs.
The exchange also noted that derivatives trading strategies are becoming more complex as algorithmic trading and quantitative investment approaches become more widely used.
These developments place additional demands on trading systems in terms of speed, capacity and reliability.
Operational resilience has become a major focus for exchanges and regulators following several high-profile disruptions in global markets.
Trading system outages can interrupt price discovery and affect participants who depend on continuous access to markets.
As a result, exchanges increasingly invest in technology upgrades designed to strengthen system stability and reduce the risk of disruptions.
The ASX said the new platform is intended to provide a more resilient trading environment capable of supporting future market developments.
Farid Sammur, head of markets technology at ASX, said the project is intended to support the long-term operation of Australia’s derivatives markets.
“Upgrading ASX 24’s trading platform is a critical investment in the long-term resilience and performance of Australia’s derivatives markets platform,” Sammur said.
“Our focus is on running a fast, fair, and reliable environment that enables our customers to manage their risk and discover prices.”
ASX and LSEG will collaborate throughout 2026 on system design, testing and migration planning.
The process will include readiness work with trading participants to ensure that market users can transition smoothly to the new platform.
Exchanges typically conduct extensive testing phases before deploying new trading systems to avoid disruptions when the platform goes live.
These preparations often involve simulation environments where brokers and trading firms test their connectivity and trading strategies.
Once the migration is complete, the upgraded platform will serve as the core infrastructure supporting trading activity on ASX 24.
The companies said the project lays the groundwork for further developments aimed at supporting liquidity, transparency and product innovation within the derivatives market.
