ASX Limited (ASX) Earnings Call Transcript

Good morning, everyone. I'm David Clarke, and I have the great privilege to be the Chair of the ASX. On behalf of the Board, I would like to welcome you to our 2026 Annual General Meeting. I'd like to begin by acknowledging that we are meeting today on the traditional lands of the Gadigal people of the Eora Nation, and I pay my respects to the elders past and present. And I would also extend that respect to all First Nations people who may be present today. Today's proceedings are being webcast live and the recording will be available on our website shortly after this meeting. And for those present in the room in the unlikely event of an emergency, please follow the direction of awards, you'll know who they are because they'll have either a red or white hard hat. It's now just after 10:00 a.m. Sydney time, and there's obviously a quorum present, and so therefore, I declare the meeting open. And I'd like to also just welcome you to this new venue after, I think 19 or 20 years in the previous auditorium. So it's part of the change that's taken place and you would have seen in the video shots of the new building in Martin Place, which is proving to be a wonderful facility for our customers and issuers. So with us here today is our Managing Director and CEO, Anthony Attia, and we also have nonexecutive directors present, being Wayne Byers, Vicki Carter, Dave Curran, Vic Jokovic, Dee McGrath, Luke Randell; and Dr. Heather Smith. Also attending today's meeting is Johanna O'Rourke, our General Counsel and Company Secretary; and Sam Hinchcliffe from PricewaterhouseCoopers, our external auditor. Sam is available to answer questions relating to the audit of our financial statements and the sustainability report. The Chair and CEO addresses will be delivered shortly and copies of both addresses have been released to the market before this meeting. And as I mentioned earlier, are available on our ASX website. So before moving into the addresses, I'll outline the agenda for the meeting and how to ask questions and vote during the meeting. Details of the formal business of the meeting are set out in the notice of meeting that was released on the 21st of September 2026. And following the close of the meeting, those attending in person are invited to join the management and the Board team in the prefunction area for refreshments just outside the doors. We'll be making refreshments available shortly before midday. However, the meeting will continue without a break until we conclude Shareholders and policyholders will have a reasonable opportunity to ask questions during today's meeting. And I will invite questions on each item of business. General questions about the management of may be asked during the first agenda item. And I would ask that any questions be directed to me in the first instance. And there are 2 ways in which you may ask a question. Shareholders and proxy holders present in the room can ask questions using the microphones you'll see in the aisles there. Before asking a question, please show your blue attendance card or your yellow voting card and state your name and anyone you're representing. If you cannot reach a microphone, please raise your hand and 1 of the attendants will bring you one. Questions may also be submitted online by shareholders viewing the webcast. For those shareholders online, please select shareholder question portal button at the bottom of the screen. Once you've logged in, select ask a question and submit each question separately. And thank you to those shareholders who've already submitted questions in advance. These questions will be addressed in speeches shortly or covered in the relevant item of business today. We'll endeavor to answer as many questions as possible. However, in the interest of time, we may combine similar questions rather than answer each 1 separately. Turning now to the voting procedures. All items of business requiring a vote will be conducted by poll and a representative of ASX's share registry, MUFG Corporate Markets is the returning officer for this meeting. If you have a yellow voting card, please complete it and hand it to the registry staff at the end of the meeting. If you need to leave early, you may hand it in as you leave. If you need assistance with the voting can, please ask 1 of the registered staff. I note that there are certain voting exclusions applying to Items 3 and 4, which are set out in the Notice of Meeting. You should know that as the Chair of the meeting, I'll vote all undirected proxies in line with the Board's recommendations and all directed proxies in accordance with the directions provided. Now these resolution is put to the meeting. We will display on the screen the number of direct and proxy votes received prior to this meeting with the final voting results will be released to the market as soon as they're available. Therefore, I now declare the polls open and now like to move to the address, both mine and following that, the chief executives. So the past 12 months have been particularly demanding for your Board as we've addressed significant challenges facing the organization. We've responded with resolve and took appropriate action not only because we represent you, but because ASX as Australia's leading exchange must set a standard. Those challenges have weighed on our share price, and I recognize the impact that this has had on you, our shareholders. My view is that the ASX has reached an important turning point. We didn't get here through 1 action or 1 appointment, but through several years of confronting very difficult issues, making important changes and rebuilding key foundations step by step. Some of this progress, particularly improvements in our technology may not yet be visible outside the organization. At the same time, we're operating reliably and resiliently through a period of exceptionally high volumes and volatile trading. And I mentioned this because it's really important because we are stewards of critical market infrastructure at the center of Australia's financial markets, on which millions of Australians depend each day. For shareholders, our businesses delivered strong operating revenue and solid earnings growth. These outcomes demonstrate the resilience of the business you are in and the commitment of our people, customers, issuers, investors and the wider market. You will, of course, be aware of the significant external scrutiny and reputational challenges that ASX has faced in recent years. We've confronted those issues head on and taken responsibility for addressing them. We acknowledge the findings of sex inquiry into our governance, capability and risk management frameworks and practices, and we've responded to them. The inquiry concluded in April 2026 providing ASX, our regulators and shareholders with greater certainty and a practical path forward. We're getting on with implementing the comprehensive package of actions recommended by the expert panel with a clear focus on delivery. The Board sees the outcome of the inquiry as an important opportunity to strengthen the ASX and make us more innovative and competitive. The actions ASX has committed to deliver are changing how we work with our customers and our regulators by strengthening our clearing and settlement facilities, improving leadership capability, and supporting delivery of the reset Accelerate program. They also require ASX to build an additional $150 million of capital by 30 June 2027. These substantial commitments that give our stakeholders a clearer basis for assessing our progress and holding us to account. Shareholders can take confidence from the progress we've made in this financial year, '26. We established the Corporate Governance Advisory Group and published new corporate governance principles for consultation. We delivered CHESS Release 1 successfully. We introduced a more independent clearing and settlement board governance structure. We resolved the asset litigation bought in 2024 and relating to statements made back in February 2022. Regarding the status of the previous CHESS project, we secured asset and RBA approval for the RESET Accelerate program and we announced a CEO transition. Together, these achievements demonstrate steady, disciplined delivery. Turning now to our financial performance. The operating revenue raised 13% -- rose to 13% in FY '26 to $1.25 billion, while underlying net profit after tax increased 5% and to up to $536 million. The lower rate of profit growth reflected higher operating expenses and increased depreciation and amortization associated with our technology spend. I recognize the considerable focus on the growth in our operating expenses. The increase reflects continued investment in the people technology and initiatives needed to transform and strengthen ASX and support future growth. It also brings our cost base more closely into line with global peer exchanges and better positions ASX to deliver sustainable long-term results. Now I'd like to move to dividends. We reduced our dividend payout ratio from 85% of underlying net profit after tax in FY '25 to 75% in financial year '26. And we expect it to remain at this level for at least the interim dividend in this year financial '27. We recognize that the lower payout ratio impacts the returns shareholders receive. The Board believes that we must achieve the right balance between continuing to provide returns to the shareholders, strengthening ASX's financial resilience and investing in critical market infrastructure that we operate. It also gives us the flexibility to respond as market conditions evolve. Competition is increasing in many parts of our business. both from within Australia and offshore. And we do not take our market position for granted. That competition reinforces the need to improve our products, services and customer experience, while remaining disciplined about how we invest your capital. And Anthony will speak more about this shortly. Moving now to remain which I know is an important issue for many shareholders. Enriching its decisions, the Board carefully considered the group's overall performance, progress against key strategic and operational priorities and the scorecard measures set out in our remuneration report. It also considered the significant consequences already reflected in the previous financial years executive pay outcomes following the commencement of the ASIC inquiry. The Board determined that this year's remuneration should recognize the important achievements delivered during the year many of which I've just outlined. The Board believes that its financial year '26 remuneration decisions support the long-term interests of ASX and its shareholders. Our remuneration framework is designed to attract and retain the capability we need to align leadership outcomes with sustainable performance for shareholders and the market. I'd now like to turn to your Board. Its members bring deep collective experience and complementary skills to overseeing ASX as complex, highly regulated critical market infrastructure. We continue to broaden those capabilities through broad renewal. So Dee McGrath joined the Board in December 2025, followed by Vic Jokovic earlier this year. Together, they bring additional experience across financial services, regulation, technology, transformation and exchange operations. Their appointments enhanced the Board's capacity to oversee the work ahead, and we strongly recommend that shareholders vote in favor of their election. Vicki Carter and Luke Randell are seeking reelection today. Vicki's experience in transformation, technology and customer strategy and looks experience in global capital markets and stakeholder relationships complement the Board's existing capabilities and strengthened its oversight of the ASX. Both have made important contributions to ASX' transformation to date and the Board strongly recommends the shareholders support their reelection. ASX's leadership change during 2026 with Anthony Attia commencing as our Managing Director and CEO on the first of September. Anthony brings nearly 30 years of experience in exchanges and market infrastructure. His career spans the creation and growth of Euronext senior leadership roles at the New York stages our next partnership and serving as Chair and CEO of Euronext Paris. He brings deep offshore exchange experience gained in complex, higher regulated market infrastructure businesses. He's got a strong track record in transformation and operational delivery, together with customer focus needed to lead ASX through this next phase. Under Anthony's leadership, ASX will renew its strategic focus on operational excellence, growth and innovation. And before I close, I'd like to thank our shareholders for their continued support and our customers for their ongoing partnership. I want to also recognize our people for their significant achievements this year and their commitment to serving Australia's financial market. We enter FY '27 with a very clear agenda and a responsibility to deliver for all of our stakeholders. Much remains to be done and disciplined, consistent execution will be absolutely critical. The Board will provide strong oversight as ASX builds a stronger, more resilient organization. So thank you for joining us today and for your continued support. The Board values this opportunity to hear directly from shareholders, and I look forward to your questions and the discussions later in the meeting. With that, I'll now hand over to Anthony to address you. Thank you. Anthony.

Thank you, David. Good morning. I'm Antonio Chairman aging Director and CEO of ASX Limited, and it's my utmost pleasure to address our shareholders today, and this is my first AGM as CEO of ASX. I feel honored to stand here before you today. And I wanted to share some initial observations before getting into more targeted remarks about strategy and the competitive environment. I have followed ASX in the Australian market for many years. Since joining, I have met with our people, our customers, our regulators and shareholders to hear the perspective on FX and the markets we serve. Together, with my experience across the changes in Europe and in the United States, those conversations have reinforced an early impression. Australia has a well-developed capital market. We benefit from deep liquid market and a large sophisticated capital base, supported by superannuation and retail investors. Our financial and regulatory institutions are well established and policy setting support stability. This ecosystem is respective internationally and is an important national asset. ASX's responsibility is to keep infrastructure at its center, reliable, competitive and ready for the markets next phase. ASX facilitates the raising and trading of capital. It is where ownership changes, risk is managed and new ideas, find funding. Our offering spends listings, equities and fixed income trading, clearing, settlement, technology and data underpinned by experienced people and established customer relationships. These strengths are important, but they should not lead to complacency. ASX has faced significant challenges and the organization is highly likely focused on remediation and transformation, that work remains critical. And on my leadership, we will also place greater emphasis on customers, competition and growth. We will listen more closely to the market and provide products and services that respond to its needs. On a personal note, I moved to Australia with a long-term commitment to ASX and the market itself. My wife and children are Australian, I already had a strong personal connection to this country before making the move. But I've spent my entire career in the exchange industry, and I'm deeply passionate about it. I believe in the societal role of exchanges. And I also believe in the strength of the Australian market, the potential effect, the high potential of ASX and the importance of this role. I look forward to bringing my experience to ASX and working with our people, customers, regulators and shareholders to be an organization that is trusted competitive and well positioned for the future. A few words about competition. Exchanges operate in a global market that is evolving rapidly and FX must able with it. Markets are expanding access adopting new technology and developing products that challenge traditional bandwidth. It is important that we respond with urgency, moved towards 24 our cash market trading, some asset tokenization. Our example of global China illustrate the pace of change. Markets increasingly operate across borders and time zones supported by new technology and connected pools of capital. As David always says, capital is mobile. These developments may reshape when markets operate, how assets are issued and transferred and what customers expect from exchanges. We at FX, we must understand these shifts early and consider where a response could create value for customers. Competition comes from alternative venues, including global exchanges, clearinghouses, technology companies data platform and private markets. It also comes from new models for raising, trading and servicing capital. Much of this is already reaching the Australian market from offshore. Capital customers and technology are mobile, issuers can access international venues. Investors can access global products. Market participants can source data, connectivity and postpaid services internationally. Developments offshore can quickly reshape the products and services competing in Australia. Our response will be forward-looking. We will benchmark ourselves against leading edge changes globally, stay close to customers and look for opportunities to move at greater pace. ASX has meaningful advantages, but we must continue demonstrating our relevance. As David noted, the competitive environment requires disciplined investment is also an important consideration in the new strategic plan we are developing. And let me say a few words about that. As we start developing our strategy, I see 3 major themes emerging; fix, grow and expand. Fix is about strengthening our foundations and resilience. Grow creates more value for infrastructure and relationship we already have. Expand opened carefully chosen opportunities to diversify the business, connecting Australian customers with new markets and our offshore customers with ours. Let me briefly explain what each team means for ASX. Fix means completing the commitments and transformation already underway and establishing the operational discipline FX needs for the present and the future. As David said, progress has been made, but important work remains. We will continue the technology modernization road map. Whether we will never stop modernizing our technology. This is our job. It's a continuous process. We will deliver the reset accelerated program to improve resilience, governance and risk management. This is fundamental to operating Australia's critical market infrastructure well. It also requires a change in how we work. Customer and market outcomes will guide decisions and reliable delivery will be the basis on which regulators, customers and shareholders judge us. Grow means adding products and services that leverage our existing infrastructure. We already have valuable capabilities, distribution network and customer relationships across listings, trading, clearing, settlement and technology and data. We will look to leverage our platform more effectively. This could include deepening liquidity, improving clearing, broadening derivatives and data services as well as developing solutions as issuer and investor needs evolve. Bone repo clearing and tokenized collateral in Austraclear are practical examples already in development that respond to clear customer needs. Expand a longer-term objective centered on opportunities that complement our core business, diversify and extend our offering into new markets. We may focus on areas where our infrastructure data, distribution and trusted relationship creates an advantage. This could include nonregulated businesses connected to our value chain. The objective is not to add more licenses or complexity. It is to broaden our capabilities that strengthen customer relationships and diversify our earnings. We will be disciplined about where we play and the risks we take. Across all 3 things, we will remain focused on outcomes, and we will assess our progress through the consistency of our delivery, our ability to compete and the sustainable returns we generate for shareholders. These themes will shape our new strategy, which we expect to announce at our Capital Markets Day in the first half of the 2027 calendar year. As we deliver the transformation and develop the strategy, ASX will also strengthen its external voice. For understandable reasons, much of the recent conversation has been inward-looking about our projects, processes and challenges. We will remain transparent about that work, of course, but at the same time, ASX will lead discussions about the future of Australian end markets and the issues that matter to customers. This will include contributing to discussions about liquidity and market quality, but also about productivity, capital formation and roll technology may play in our markets. We will have Australian companies reach broader pools of capital and support investors seeking global opportunities. We are working with issuers, investors, brokers, clearing participants and regulators to support Australia's competitiveness. We will earn the rights to influence these discussions by delivering on our commitments engaging openly and understanding how our market are used. By doing so, FX will play a leading role in building stronger, more competitive Australian capital markets. Now I'm very proud about the executive announcement that we have made a few weeks ago. We are strengthening our leadership team to deliver the agenda that I've mentioned. In my first weeks have made 3 appointments. Pierre Barns will join ASX as Chief Financial Officer, succeeding Andrew Tobin when he retires. Mark Peterson will become Managing Director of Clearing and Settlement and Alain Vaisanen will become Chief Operating Officer and lead the Accelerate program. Making these appointments early maintains momentum. Together, they bring this deep experience in finance, in caption markets, in exchange operations, customer service and in major transformation. They add depth and fresh perspectives, sharpen our focus on customers and execution and help position ASX for its next phase. Now turning now to recent market activity. We saw encouraging momentum in trading and listings during the first quarter of FY '27. Total cash market value trading increased by 7% compared with the same period last year, which total futures volume rose by 2%. Activity in both markets was primarily driven by geopolitical uncertainty and changing expectations for monetary policy. Last week, we welcomed Glencore to FX through its dual listing. It is a powerful reminder that Australia's capital markets are deep, attractive and globally relevant. Let me finish with our guidance. We reconfirm FY '27 total expense growth guidance of between 18% and 21% compared to FY '26. Operating expense growth, excluding the depreciation and amortization is expected to be between 13% and 16%. This reflects the investment in our ongoing strategic priorities, as I mentioned today. We also reconfirmed capital expenditure guidance of between $180 million and $200 million in FY '27 and between $170 million and $190 million in FY '28, which is primarily related to investment in our technology modernization program. It is important to compare ASX' operating expenses base with similar global exchanges. We are currently broadly aligned with that peer group, and my focus is to remain so. Transformation requires investment. The growth needs not necessarily create a new layer of expense. We will invest continuously in our infrastructure, simplifying processes partner selectively and pursue the strongest opportunities. This is how we will drive growth while remaining disciplined in the use of shareholder capital. To conclude, I'm confident in ASX's future. We have a strong foundation and a clear path ahead. We have the support of the Board and under my leadership, we will complete the work to strengthen the organization, put customers at the center of our decisions and pursue growth and diversification with discipline. I'm committed to fulfilling our responsibility as stewards of Australia's capital market infrastructure and creating enduring value for shareholders. Thank you. And I will now hand back to David.

Thank you, Anthony. We will now move to the formal business of the meeting. The first item of business is to receive the ASX financial report, sustainability report, Directors report and the auditor's reports for 2006 financial year. Anthony and I have already discussed our financial performance and the comprehensive material was released in our full year results on the 13th of August. So Sam Hinchcliff, our external auditor, from PwC, is available to answer any questions about the preparation of the financial statements. and the conduct of the audit, the auditor's report and the auditor independence. I've been advised that there are no questions for the auditor, that no questions were received ahead of the meeting. There will be no vote on this agenda item. This is a discussion item only. So I now invite questions about the management of ASX generally or about the financial statements or the sustainability report.

Peter Gregory is my name. I'm here as a representative of the Australian Shareholders' Association. We are a not-for-profit organization that is the voice of individual shareholders. And this is completed through the work of many volunteers throughout Australia. Today, I have proxies of 230,000 shares from 153 shareholders. And I note that 83% of the shareholders on ASX has registered own less than 1,000 shares. Also, I'd like to thank ASX for their continued engagement with ASX -- with ASA over many years. It's been very positive and constructive. So thank you for that. I'd like to make a comment rather than a question. Back in 2023, shareholders were particularly excited to see the announcement of ASX' new air a 5-year plan. It effectively came in 2 parts. Firstly, the technical part and Chess in particular. And here, we see solid progress having been made, but we also note that the regulators made it pretty clear that this was not negotiable. Secondly, with the creation of ASX for the future. Since its announcement, ASA has consistently asked that this transformation have world-documented and time-delineated milestones rigorous oversight and proactive management. And at this be shared with the owners of the company who have invested their money in ASX and with all of the people in the company who have committed part of their life to ASX. Now we also have in addition to the new era plan and Accelerate 1 and now accelerate reset, the imposition of ASX's -- sorry, ASX road map with its factors of success added to those other milestones. ASA shareholders and asset also have seen that the progress towards the new era ASX has not been acceptable. And we'll have more to comment on that a bit later on. But for now, if I can see your Chair, welcome Anthony to ASX and also to Australia. We wanted to share with you our shareholders frustration with the lack of transparency and progress on the transformation of ASX. And given the comments that you've just made a few moments ago, we're hopeful that under your leadership, it will be much more of a shared journey.

Thank you very much. And just on the transparency in particular, I think, with the transformation and the accelerate program, we will be giving updates every half and full year on the progress of that program, and it's well underway. There's no question there's a lot to do, but we've also achieved quite a lot so far. And as I said at the half year results, there will be an update on that. The broader transformation gives us the best platform to compete, and we will certainly keep the market updated, as I said, on those regular 6 monthly updates, both full year and half year. So thank you for that. Are there any further questions or comments on -- of a general nature here? Anything online? Any questions online?

Chair, we've received a number of questions from shareholders asking about the recent share price drop in May, along with what ASX is doing to improve the overall performance of the company.

Well, we certainly we don't have direct control over the share price. I know everyone in the audience understands that, what we can do, I think, is already been outlined through the actions that I've both articulated and Anthony has. So -- and I'll just repeat that we've -- remember all the controversy, there was about the Corporate Governance Council and some of the rules and regulations and where that was going. We've reset that and now got a group chaired an independent group chaired by Dr. [indiscernible]. They put out some guidelines and principles for consultation that is under consideration by that group advisory group now. We've successfully delivered the CHESS, the first part of the CHESS program. It sounds easy to say, but if you think of the angst associated with CHESS a year or 2 ago, to have that part of it, a very important partner, the clearing part behind us is a great achievement. We've got an independent structure associated with our clearing and settlement Board already in place. We resolved the litigation with ASIC that could have gone on for 5 years, taking resources, damaging our reputation with every move of the litigation. So we feel that, that was a good thing to achieve. We've got regulatory approval from both RBA and ASIC for our new program. And we've got a new CEO, and as you can see, 3 new very senior earnings experienced directors -- executives. So all of those go -- you move the share price, well, you give shareholders confidence in what they do with the share prices of their business. Our role is to just steadily make disciplined, thoughtful, regular improvements in our business. And that's what helps a stock like ASX improve. And shareholders will decide what the price should be. But our job, as the Board and the management team is to have that disciplined execution, and that is what the path that we're on. So hopefully, that's answered that question. Any further questions?

Chair, the next question is, why can't ASX extend trading hours beyond 10 a.m. to 4:00 p.m. This will give ASX extra trading volume and generate extra revenue. The size of the market demand and technology available should make this possible.

I'll make some very brief answer and then I might hand over to Anthony, because I think he's -- he mentioned extended trading hours in his address. I do understand that this is a -- this is happening worldwide and that we need to keep up. I would suggest that just by extending hours, you don't extend the number of trades, but perhaps let Anthony answer the question.

Thank you. Thank you, David. I think it's a great question. Look, I think there's 2 conversations. One is about the extension of trading hours in the current market structure. And this is something we're looking at on different asset classes on cash equity on listed derivatives, in particular. So cash equity, the extension of training hours with [indiscernible] capturing more retail flow Nevertheless, we need to make sure that the liquidity is not stretched thin. So we need to make sure that we continue to have the highest level of liquidity when we do that. So that's what we're looking at. The second interesting development is on listed derivatives begins to strike futures, where we have a significant flow coming overnight from overseas and we would like to capture it directly in our owner flow. So we're looking at that, too. So this is 1 of the important development that we're working on. We don't have any technology challenge to do that. It's more of a market readiness as a whole. We want to make sure that our clients are ready to do it, but it's not a tech channel level. And then there is a the mega trend, which I briefly touched on around 24/7, which is a trend coming from the U.S., coming from crypto exchanges and crypto investors. This 1 is to be carefully understood and looks at because it creates a major transformation into market participant behavior, the way we do coproductions with , et cetera. So this is more a long-term consideration that we are looking at, and that's going to be part of the topics that will be addressed in the work on the next strategic plan preparation that I mentioned.

Okay. Thank you, Anthony.

The next question is, is it ASX policy not to pay dividends without bank details? Do these unpaid dividends appear in the 2026 accounts as paid or unpaid? And as at 30 June 2026, how much has been recorded as paid but remains unpaid? And does this comply with relevant laws and standards?

Thank you. Thank you for the question. What are we -- first of all, I would encourage everyone to supply the event details to their registry because if you don't do that the funds are going to -- I'll tell you where they end up, but I'm not going to go to you. They're going to be waiting on our balance sheet for there to be appropriate details in your shareholding name at the share registry. Currently, there's just under $3 million. I think it's about $2.9 million of dividends that have not been collected. They sit on our balance sheet as a liability. The -- and yes, it's all appropriately legal and satisfactory. So again, I would reinforce, please, this $2.9 odd-million in there for our shareholders that are owed and all they have to do is supply their bank details and it will flow into their bank account.

Thank you, Chair. No further questions.

Okay. Are there any further questions in the room or any questions in the room just before we move on? Yes.

Look, I just want to know, what are the 3 main things that this Board is now currently focused on? I know there's a chief executive has talked at overseas. Is that about going in partnership with overseas exchange buying business? Is it using AI so that when we buy and sell shares, it settled on that day, much the same if I pay you money, it's in your account the same day I took it out of my account. Or what are those 3 key things. We just seem to be chunking along each time I came, it's just pretty much the same as last year. without being route, I don't mean it that way. But what is the big plan? What is the big picture?

Thank you, a very good question. So it's quite a lot -- quite a big topic. So I'll do my very best to shrink it for everyone. The world of exchanges has changed and it's changed markedly in the last 18 months. So prior to that, there was a lot of experimentation going on. Now there is actual activation of new technologies and new ways of trading across the globe and we need to confront that. So what's on our mind it is from a risk perspective, right at the top of the risk perspective is cyber. So we spent a considerable amount of time on that. From a point of view of our business, as Anthony said, it is fix, grow, expand. What I would say about competition is that we have competition across the board. And we need to respond much more actively to that than we have in the past. We have been, I think, Anthony said, and we've been quite inward looking. The whole purpose of our reset is to look out with much more engaged with customers, be much more receptive to what they need than we have in the past because we are in a battle, and if we don't win this, then the exchange as a lower growth feature and I don't think anyone in the room wants that. Now you might say -- people say to me, well, yes, really have competition. Let me tell you this. There's some stats for you. Over 90% of institutional over the outside it. Currencies -- interest rate swaps, 90% of interest rate swaps that are done over the counter, that means away from the exchange as 1 in London, by the London clearinghouse. That's dollars. 150 Australian companies have their debt listed on the Singapore Exchange. If you look at the ABC News every night and you may not watch the ABC, but if you do, the finance section down the bottom, it says for all the data that comes up on the screen and they talk about it says LSEG, London Stock Exchange Group. The London Stock Exchange Group are giving the ABC data about the ASX. Data is a particular growth engine for us. And so we're competing in there at the moment. So it's all very well for people to say, well, you've got -- haven't got competition, but it's in every aspect of our business right now. And 24/7 international exchanges are all part of that. So competition and facing into the competition is a major, major priority for us. I hope that gives some clarity. Any further questions? Okay. So as we've got no further questions on this item, we'll now receive the financial statement in the orders report for the National Guarantee Fund for the 2026 financial year. This is a fund that supports any issues that customers may have within the exchange. So the Securities Exchanges Guarantee Corporation or the SEGC administers this National Guarantee Fund. And under the Corporations Act, the SEGC must arrange for the futures for the funds audited financial statements to be presented at the AGM of each of the SGC member. And the statements have been published on our website. There's no vote on this matter. It's a matter for discussion only. Are there any questions submitted in advanced online?

No questions, Chair.

Okay. And if there's any questions, I now invite any questions from the floor on this item. Thank you. Just -- so there were no claims. There were no successful claims against the fund during the past year. The next item of business is to consider the remuneration report, which commences on Page 54 of the annual -- of the 2026 annual report. The wording of the proposed resolution together with the direct and proxy votes received before the meeting is now shown on the screen. The nonexecutive directors unanimously recommend the vote in favor of this item, and I'll vote all proxies available to me in line with that recommendation. The resolution on this item is advisory only. However, we do take, as you expect, shareholder feedback into consideration when reviewing ASX' future remuneration policies. The remuneration report, which is in the annual report sets out the board's assessment of management's 2026 performance against the objectives established at the start of the year. And a key focus for the Board in determining the remuneration outcomes for the year has been making a balanced assessment of the performance for the year. In relation to the asset inquiry and the final report that was released in the 2026 we're talking about. The Board looked took significant remuneration action last year. That is the FY '25 year in response to the matters that gave rise to the asset inquiry, including the former CEO for going short term, her short-term bonus and reducing the executive bonuses pool by 50%. So we subsequently assessed whether the inquiry final report identified any new matters warranting further remuneration consequences this year, and we concluded it did not. We therefore assessed financial year 2016 performance on its merits. And as you heard earlier, ASX achieved strong underlying profit outcomes significant technology platform delivery, including CHESS Release 1. However, operating expenses and the need to reset the Accelerate program were assessed as not meeting the expected outcomes. On balance, our performance was at the target we set for ourselves and the Board believes that the resulting financial year '26 remuneration outcome reflected the overall quality of performance and the management accountability. Based on the votes received prior to the meeting and the votes available to be voted on the floor of the meeting. It appears that the resolution for adopting the remuneration report will be passed by more than 75% of the votes cast. I'll now take questions on this item of business. So firstly, if I can just ask if there are questions submitted in advance or online.

Thank you, Chair. We've received a number of questions relating to the remuneration of the CEO and executives which reference ASX's recent regulatory challenges and technology costs. The questions can be summarized as how is ASX justifying the remuneration of its senior leaders.

Well, I do think I covered some of that in just the preamble to this item. But if I can just briefly go back over them. So we did take into account the asset inquiry. We knew where it was heading when we made the remuneration decisions associated with financial year '26. Again, the CEO ended up the executive team and their pool cut by 50%. And what I would say about this year is that the outcome was based on strong financial performance, delivery of a major technology enhancements, not just CHESS 1, others as well, but CHESS is the 1 for all the reasons we know gets the headlines. The remuneration framework, again, and I'll finish with this point is designed to attract and retain capability that supports the long-term success of the business. We are -- I might finally say that we continue to deal with a long, long-standing issues that go back many, many, many years. Our way out of this is the right people, the right people with the capability and the resilience and the drive to achieve the change that is not easy in an organization that's operated in a certain way for decades. Anything further?

Yes, we've received some feedback and a question from Stephen Mayne in relation to proxy adviser recommendations on our rem report. It's a shame you didn't disclose the proxies to your own announcements platform before today's AGM, along with the formal addresses, not doing so leaves us debating in the dark. I also don't understand why the AGM webcast is on a different platform to the 1 being used to lodge these online questions. Anyway, did any of the proxy advisers recommended against this remuneration report item? If so, what reasons did they give? And did it cause a material protest vote?

Well, Stephen, I think the protest vote is, if you call it that. So there was 82% in favor of the resolution and against the resolution. As to the technology -- I'm sorry, I don't have the answer for that, but I can always follow up on that one. The proxy advisers, this is -- it sounds like a simple question, delicate issue because the proxy advisers have a relationship with the investors and is a contractual one. However, I can say because I believe it was in the press, that 1 proxy adviser recommended against the remuneration report. I can tell you that all the others recommended for it. The reason that they gave was -- in simple terms, share price hadn't performed well, so executives shouldn't get anything. I thought it was ridiculous. I don't think that is a very motivating situation to try to work our way out of long-standing problems. And I felt that it was rather simplistic.

No further questions.

I now invite questions on this particular item from those in the room.

David, ASX's remuneration plan has been a continuing concern for ASA. This year, again, we will be voting proxies against -- proxies given us by members and shareholders against this resolution. I'd reassure you that it's not an ill-considered protest vote it's for some very specific reasons that relate to the guidelines that we have in place and apply to all companies. Our vote is largely because we don't see that the short-term incentive shows a transparent and logical relationship between rewards and financial performance, strategy implementation and corporate governance. There's quite a number of issues involved in this, and we have discussed this with you before, but I will highlight a few of our concerns with you here now. A very simple thing is we find the layout of the STI scorecard to be confusing. The headings of threshold, target and stretch appear like Range is not specific numbers. This needs to be clear, easier to read and understandable. -- the 1 to 5 scoring system that we -- that you use, we believe oversimplifies the STI measurement. Other companies use an exact result that accurately affects an actual outcome. The scoring system can't be like the university grouping of fast sorry, fast fail pass credit. It needs to be right down to what the actual number is, so that the outcome is accurately measured and represented in remuneration. We have concerns about the scoring the STI scoring in the last financial -- sorry, in the FY '26 financial annual report. We believe that it shows an actual outcome at Target or 3 is the number based on the calculations that we have done based on the number you've given us, it appears like it's 2.6, which effectively comes down to an overpayment of something over 10%. For a major scorecard metric, ASX uses underlying NPAT. The actual target number is 6% below last year's actual. So we expect that we were seeing an improvement in NPAT going forward and that the target should be at least above last year's NPAT. And we believe that on the basis that we have a talented experienced executive team who are able to deliver more than just a continuation of the past. In addition, in FY '26, ASX experienced a significant and unexpected revenue uplift that had an additional material impact on impact so that it appears that the outcome for this metric in the scorecard was as much windfall as it was a management performance. There's a lot in this, and I don't want to get into the specific responses on details here, except to assure you that we'd like a commitment for improved transparency and detail in the future annual report and that we are prepared, as we have been before, to give you feedback and assistance in the development of this that matches with our guidelines.

So we have had a number of engagements with the ASA, and we've discussed this previously. We've I think the conclusion we've come to is that we respectfully disagree with the position put forward. But nevertheless, with the part of the discussions with the ASA, along with other shareholders have been to make a concerted effort to improve the transparency of our reporting, particularly on short-term incentive allocation. Sorry, Peter, that it disappoints you, we've got good feedback from a whole range of other shareholders. And I think that while I accept that some others provide very precise measurements. Of course, we will -- we review something like this every year and think about how to make it better. So take on board your comments. I think that -- can I just go to the essence of it, though, and when you set a scorecard, you can't say on revenue, for instance, are you got lucky someone declared war in the Middle East, so there's lots of activity. It's -- you've got a contract and trust with your management team. And you can't go and then without some substance, go and say, "Well, you didn't really earn that. What we did do was say, there was on the expenses, notwithstanding that we had to upgrade the expenses as a result of the activities that we needed to do as part of the Accelerate program, we marked that at 0 because they just didn't meet. In terms of the Accelerate program itself, which is part of the scorecard, because it required changing by -- after input and feedback from the regulators. We mark that down even though technically, it has hit its scorecard requirement. So I believe we applied a good level of discretion here in order to try and balance fairness and equity all the time seeking to retain our key employees of which this is a major part of their remuneration. So -- and I'd just take a really high-level view and step back. We now have largely this board and this management team and those who step forward into a problem company to fix it, confronting decades old issues that needed to be fixed in a very complex organization that have to perform every single day for the markets. So I think there's an element of respect for the people that do that every single day knowing that it might not go quite as well as they would hope or make the speed of progress that they might look. Certainly, you've heard from Anthony, that we want to speed things up, and that is our goal. So thank you for your comments. I appreciate them. And I mean, seriously, we will look at how we can improve.

Okay. I have another question to do with the former CEO's departure package. It included 9 months, what I would loosely call gardening leave. 100% of target for FY '26 STI and the retention of under -- sorry, unvested deferred STI and LTI. We also note that the LTI outcomes will be impacted. We would expect very -- going forward will be impacted very significantly by the new CEO rather than it being a carryforward of what was in place before. In the context of the asset report commentary about leadership, can you explain why this package is appropriate?

The first point I'd make is the ASIC inquiry, as I said, was considered in the FY '25 year, and that's why Helen recommended that you have no bonus because of that very criticism that you've talked about. And as we saw the final report, there was no additional criticism. So we felt we had dealt with that or she had dealt with that in with foregoing any bonus in FY '25. So it felt like we were going to we're going to penalize them again if we use that excuse or that reason, sorry, in FY '26. None of the payments -- all of the payments were contract part of her contract. There was no variation of that. On your issue of the LTI, it's highly unlikely that the LTI that she has on foot will actually vest or best in full, given the starting point and the history. So I think what I would say is that what really weighed on our mind in making this assessment as well is, first of all, the ASX is occupies a very unique position. We're not unique, but it's a very important position. And so therefore, continuity, orderliness the idea that things will move smoothly is a prized criteria by those who oversee us. We were in a situation where we needed a new CEO that takes time. New CEOs, you go through a recruitment process. They got to get notice, all that sort of thing. So the continuity was really, really important to us. And Helen did serve, I think, 11 months of the 12-month period on which the and the bonus was prorated for the 11 months. We felt that it was appropriate that we assess to like we would any of the other senior executives. And so that's how we reached that decision. And frankly, it was with the benefit of Darren Yip, as interim CEO was an incredibly smooth handover. Momentum was retained, and that was key to us. Any further questions from the floor on the remuneration manner. Okay. Thank you very much. So our next item relates to the proposed grant of performance rights to Anthony Attia, ASX's Managing Director and CEO. The details regarding the proposed grant are set out in the Notice of Meeting and the wording of the proposed resolution, along with the direct and proxy votes for this item submitted prior to the meeting are now shown on the screen. The nonexecutive directors unanimously recommend that you vote in favor of this item, and I'll vote all proxies available to me in line with the Board's recommendation. The performance conditions that apply to the proposed grant are outlined in the Notice of Meeting, and I'll now take questions on this item of business. Are there any questions submitted online before we go to the floor?

Thank you, Chair. No questions.

Okay. Thank you. Any questions in the room on this item? Okay. Well, thank you for your support. We'll now move to the election and reelection of directors. ASX wants to maintain the right set of skills and experience on our Board. And since the last AGM, as I've mentioned earlier, Dee McGrath and Vic Jokovic have joined the Board as independent nonexecutive directors. Our renewal has focused on strengthening the Board's collective capability in global and financial markets and exchanges, technology, customer outcomes, transformation and financial services. We believe Dee and Vic will make outstanding contributions in these areas. In addition, Vicki Carter and Luke Randell is standing for reelection today. Again, Vicki brings experience in strategy, customer outcomes and transformation and look brings experience in global capital markets and customer and stakeholder engagement. Further information about each of the directors standing for election and reelection can be found in the Notice of Meeting and the annual report. And I would encourage you to support Dee and Vic's election and Vicki and Luke's reelection. Each has the unanimous support of their fellow directors, and I'll vote all proxies available to me in their favor. So with that preamble, I'll now move to the actual items of business. And the next item is the reelection of Vicki Carter. The wording of the proposed resolution is shown on the screen along with the direct and proxy votes for this item submitted prior to the meeting. Vicki was appointed as a Director of ASX in February 2023. And I now invite Vicki to say a few words.

Thank you, Chair, and good morning, ladies and gentlemen and fellow shareholders, and thank you for the opportunity to speak with you this morning in support of my reelection. When I enjoyed the board 3.5 years ago, I spoke of the critical role the ASX plays in providing access to and preserving the integrity of Australia's financial markets. Despite the many challenges that we have faced during my time on the Board, I have very high conviction about the importance of the exchange its people and its purpose. That conviction has only strengthened. We've been tested ourselves, and we've been tested by our stakeholders. And while we've made good progress, the Board and management acknowledges that there is more work to do. I believe my skills and experience have enabled me to make a positive contribution to ASX, and I'm well placed to continue doing so. My background is outlined in the annual report and Notice of Meeting, but I would like to take this opportunity to highlight that I have bring relevant experience in leading large and complex transformations at executive and board level. And I've worked in highly regulated and complex environments solved my career across banking, wealth management and telecommunications. I understand what it takes to uplift capability to deliver with discipline and to embed cultural change that delivers lasting results. This experience spans along in 35 years and in senior executive positions, most recently at Telstra Corporation overseeing the delivery of its transformation program. That was a multiyear transformation program. At ASX, I'm a Chair of the People and Culture Committee. I sit on the noncommittee the Risk Committee and the Technology Committee. These roles give me a direct view of the issues most critical to ASX's future, our capability and our culture, our management of risk and the technology that underpins our markets. My other nonexecutive roles include the Chair of Bendigo and Adelaide Bank and Non-Executive Director of IPH, where I sit on all committees and then the Chair of the Projects Committee. These roles continue to broaden my experience and inform the perspective I bring to the ASX Board. In seeking your support for my reelection, I confirm that I have both the capacity and the commitment to continue working hard for ASX and for you as our shareholders. I'd be honored to serve on the ASX Board for a further term as an independent nonexecutive director. Thank you.

Thank you, Vicki. I'll now take questions on this item of business. Are there any questions submitted online?

Chair, there are no questions.

Okay. Questions, comments from the floor on this item? Peter.

The ASX -- sorry, ASIC, too many acronyms here. The asset review stated that ASX leadership was an underlying cause of the shortcomings it identified. While this clearly included the CEO and the executive, it also encompasses the Board, which has responsibility for approving agreed strategies developed by management and monitoring the execution of the Board approved strategy. The CEO, CFO and COO, have either left or a soon to leave ASX and ASA believes that the Board must hold accountability for the also hold accountability for the asset review outcome. Vicki and Luke were both -- have both served throughout the period examined by the ASIC inquiry, and so to reflect board accountability -- sorry, ASA will vote against the reelection Vicki, I'd like to ask you a specific question. You came to ASX having had experience in overseeing the delivery of Telstra's successful multiyear T22 transformation program. In considering the fairly limited and transparent, measurable progress there has been of ASX's new era transformation program. Can you please share your contribution to the Board's oversight of ASX transformation programs? And what -- in hindsight, what would you see could have been done differently?

Peter, I did ask that all questions be referred [indiscernible].