The news: Financial regulator ASIC is in the final stages of considering a listing market application from Cboe Australia, which could end the ASX’s stock exchange domination.
The context: ASIC said in in a statement on Wednesday afternoon that it is “in the final stages of considering a listing market application from Cboe Australia, a subsidiary of Cboe Global Markets”.
If finalised, Cboe Australia would be able to facilitate public listings of companies on its own market.
ASIC said this would be expected to “enhance competition and attract foreign investment, providing more choice for investors and greater international alignment”.
Cboe Australia, which began operations in 2011 as Chi-X Australia, currently provides trading in ASX-listed securities and other exchange traded products on its own market.
ASIC is also in the midst of approving additional foreign markets to enable “Australian investors to participate in certain transactions in these markets”, deepening Australia’s integration in the global financial system.
The expansion includes Cboe’s US and Canadian exchanges and the Canadian Securities Exchange (CSE), prospective acquirer of the National Stock Exchange of Australia (NSX).
The regulator also said that it is exploring measures to streamline dual listings of foreign companies in Australia to attract international businesses to Australia’s public markets.
What they said: “This is important work. Our capital markets are healthy and strong but face intensifying global competition for capital and listings,” ASIC chair Joe Longo said.
“As superannuation funds grow and investors seek opportunities, our actions will help keep our markets efficient, innovative and attractive, supporting economic growth for all Australians.”