Australian Securities Exchange is looking for a new CEO after the current incumbent, Robert Elstone revealed plans to retire from July next year.
Mr Elstone, a former boss of the Sydney Futures Exchange, took charge of the ASX following the merger with the SFE four years ago.
ASX chairman David Gonski told yesterday’s AGM in Sydney that the board will appoint an executive search to find a successor for Mr Elstone.
He said the search will include candidates from both within ASX and from outside.
The news, and the lack of any further detail on these talks with other exchanges, saw the ASX’s shares ease 1%, or 36c to $33.16.
"Robert has served us extremely well and I believe he can be very proud of, and we very thankful for, all of his achievements over a number of years,’’ Mr Gonski told shareholders at the company’s annual meeting.
Mr Elstone’s contract will be amended to allow ASX to terminate it so that it ends either three months before or after 11 July, 2011.
"This will give the Board the flexibility to ensure that we have the time to find and install a new CEO.
"It also ensures the ability for that new CEO to take up his or her position should they wish to do so prior to 11 July next year,’’ Mr Gonksi said.
Mr Elstone said the ASX will be ready and well placed when competition for trade execution services starts "as long as the playing field is level’’.
He said in the three months since ASX’s end of financial year, ASX has experienced an uplift in new listings and has a more robust pipeline of listing prospects.
Still this has been countered by a 4% fall in the value of equity market trading activity, but there has been a strong recovery in futures market trading activity.
But the 4% fall in the value of share market trading is the serious problem.
Although not as deep as the 20% fall in Wall Street trading volumes in recent months, it’s still a sign that there isn’t the wholehearted support from small and big investors for equities at the moment.
The talks referred to in Tuesday’s ASX statement from the company were not mentioned or referred to in either speech yesterday.
You would have thought there would have been at least a cursory mention.
