Chi-X wins in-principle trade licence
The Age
Thursday April 1, 2010
AS THE new market supervisor and regulator draws up its market integrity rules, the federal government has cautiously revealed that Chi-X will be the first market operator to compete with ASX.Beating Liquidnet and a New Zealand-led conglomerate, Chi-X has been given an in principle licence to trade listed shares in Australia.However, the Minister for Financial Services, Superannuation and Corporate Law, Chris Bowen, said yesterday it would not be able to open until the Australian Securities and Investments Commission had settled into its new supervision role.The Australian Securities Exchange has been preparing for competition since August, when the government announced that ASIC would take over market supervision duties.ASX shares fell $1.09 yesterday to $33.94, the lowest since February 1.Mr Bowen said that competition in market operation was part of the government's plans to make Australia a financial services hub. "This means that there'll be more than one stock exchange in Australia fighting for the business of Australia's investors."Mr Bowen said that in-principle approval would help ASIC prepare its regulatory guidance and allow Chi-X to complete preparations for Australian operations and enter discussions with the ASX.Chi-X is owned by Chi-X global, which operates markets across Europe, Canada, the US and Korea. It is a subsidiary of Instinet, which in turn is owned by Japanese company Nomura.In October 2006, Instinet unveiled Chi-X electronic trading clearing and settlement platform for stocks.
© 2010 The Age
