Chi-X Ends 20-Year ASX Monopoly

The 20-year monopoly of the Australian Securities Exchange (ASX) came to end on Wednesday (May 4), after Canberra gave final approval for a rival exchange run by Chi-X.

The decision was welcomed by Chi-X, which intends to begin operations in the 4th quarter of the year.

Chi-X first applied for an Australian license three years ago, but approval was delayed as regulators updated rules to allow for competition.

Nomura-owned Chi-X received partial approval a year ago.

Final approval was further complicated by the Singapore Exchange’s (SGX) late 2010 takeover bid of the ASX.

The deal was recommended by the companies‘ boards, as vital to compete with rival exchanges in Tokyo and Hong Kong.

The Chinese city in particular attracted more than $50 billion in equity offerings last year. But with the takeover since rejected by the government, Chi-X no longer faces the prospect of having to compete with a combined ASX-SGX.

The firm still has to satisfy regulators, who will now review its trading technology, and ensure full connections with brokers, before allowing operations to begin.

Foto: NTD