The Australian Securities and Investments Commission (ASIC) has released a timetable giving its provisional approval allowing new trading platforms to operate in Australia with the first entrant Chi-X starting in October.

The ASIC, however, said that the full details of the market rules are yet to be issued, an introduction of said rules will take place in April, a statement said.

The Singapore Exchange is currently proposing a $7.7 billion takeover of the ASX. Deutsche Boerse has agreed to merge with NYSE Euronext and London Stock Exchange's will merge with Toronto Stock Exchange parent TMX Group.

Chi-X received an in-principle market licence in Australia almost 12 months ago, and had targeted a launch date about October 2010 but was delayed by a handover of powers to the regulator and a general election.

In an emailed statement to IBTimes.com.au, Chi-X Australia's COO Peter Fowler confirmed the October launch, " we will certainly be working to that date (and earlier if possible)."

ASIC said Chi-X supports the proposed best execution framework.

Market operators and participants will need to prepare for a multi-market environment. Some of the steps industry will need to take prior to Chi-X's commencement include:

  • ASX and Chi-X will need to make operating rule and system changes, put in place procedures for simultaneously halting trading, for use of common stock and broker identifiers and for the sharing of certain data, and link to the nominated clock for synchronisation;
  • Chi-X will need to connect to market participants, CHESS, data vendors and ASIC (for the provision of real-time order and trade data for surveillance purposes);
  • Participants will need to prepare to comply with the best execution obligation. Those intending to connect to Chi-X will need to amend their order routing and back office systems and prepare to comply with Chi-X operating rules, the new common market integrity rules, and the new market integrity rules specifically for the Chi-X market;
  • Chi-X will need access to clearing and settlement services; and
  • Data vendors will need to connect to Chi-X, consolidate ASX and Chi-X data feeds and make the consolidated feeds available to clients.

ASIC has vowed to continue working closely with market operators and market participants during the coming months, including on industry testing and related issues to ensure a smooth transition to competition takes place.