Higher trading activity by nervous investors and billion dollar capital raisings by the major banks have helped boost profit for the Australian Securities Exchange.
An average of $4.1 billion was traded per day with the ASX over the six months to December 31, an increase of almost 17 per cent on the same period a year earlier.
Higher revenue in two of the company's three remaining market-related businesses also contributed to half year profit growth of seven per cent to $213 million.
"Volatility does help trading volumes, and volatility kicked up in the middle of last year," ASX chief executive Elmer Funke Kupper said.
The VIX index, an official measure of market volatility, typically moves above a reading of 15 in times of investor uncertainty, and has moved within a range of 15 to 31 since mid-August.
"Some uncertainty about the interest rate environment globally ... also helps. People move around when there's uncertainty," Mr Funke Kupper said.
A falling Australian dollar may have increased interest from foreign investors, he added.
Trading volumes continued to rise in January, with the average daily value of $4 billion up 7.6 per cent from the first month of 2015.
But Mr Funke Kupper warned market volatility can also reduce the number of new market listings, another driver of revenue for ASX.
Listings were up in the six months to December, but the main reason for revenue growth in the listing services business was a 42 per cent jump in the value of capital raised to $55 billion.
That can largely be attributed to $18 billion in equity raisings by the big four banks as they sought to bolster their balance sheets to meet new regulatory requirements.
ASX expects to spend slightly more in the second half of the financial year than it had previously indicated, as it designs new technology to improve its customer service.
ASX shares gained 72 cents, or 1.86 per cent, to $39.53.
MARKET ROLLERCOASTER BENEFITS ASX
* Net profit up 7.3 pct to $213.1m
* Operating revenue up 7.9 pct to $376.2m
* Interim dividend up 6.8 cents to 99.1 cents
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