Macquarie research rates ASX to underperform noting that volumes on the exchange are lagging the current equity market rally. Cash Equities volumes fell to just $3.7bn, 10.6% below the average of August and September 2013 ($4.2bn) as ASX lost ~1ppt market share to Chi-X. October interest rate futures volumes grew by 20% YoY and +10% and +17% above the July and August 2013 non-roll months. ASX is trading on 18x consensus 1yr forward PER, a 26% premium to the Australian market and at the top of its valuation range - underperform.