The Australian Financial Markets Report for 2007 again shows sustained vigour across the board. Turnover on exchange-traded markets in equities and futures was up significantly by a combined 32.2%, and OTC markets sustained momentum at over 14.6% growth. Both markets have recorded increases consistently since 1999-2000. Whilst most market segments posted positive results, reflecting strong market activity, as to be expected, there were some dips in performance – for example trading in Renewable Energy Certificates was down, largely due to the drought. The numbers in individual markets are complemented by expert commentary and we thank the AFMA member firms who have contributed data and the Chairmen of AFMA’s Technical Committees for their thoughtful insights. We are also grateful to the Reserve Bank for foreign exchange information and to the Australian Securities Exchange for figures on exchange-traded equity and debt.
As the AFMR is the only comprehensive survey of OTC market activity in Australia, it serves as a barometer for the markets in general. It quantifies the scale of Australian financial markets and illustrates the essential economic purpose that they serve in providing the mechanisms which financial institutions and corporations can utilise to efficiently manage their financial resources and their financial risks. It is also a useful benchmarking tool for market participants.