At a crossroads

The Sydney Futures Exchange recently went public. It is launching new products and diversifying its customer base. But plans to eliminate the government bond market are a concern. Naomi Humphries reports

Over the past four years, the Sydney Futures Exchange (SFE) has undergone a dramatic transformation, including demutualisation, a switch to electronic trading and the recent listing of its shares. But there are significant challenges to confront. It needs to boost its stock price and establish itself as an international player. The biggest difficulty it may face is the elimination of the government bond market in Australia, which is being discussed by the nation’s politicians.

The exchange