ASX and Chi-X anticipated rivalry meet regulatory delays as ASIC reviews competition submissions
Its earlier announcement of operations commencement by March this year could see bits of delay, according to Chi-X Australia Pty, as the definite timetable competition guidelines set to be released by the Australian Securities and Investments Commission (ASIC) appear far from realisation.
The delay was reportedly caused by the general elections held last year, said a Chi-X statement released on Monday, which it said prompted an immediate review on all government commitments approved by the previous administration, currently conducted by ASIC.
That means that the much awaited challenge set to be posed on the country's main stock operator, the Australian Securities Exchange Ltd (ASX), will have to wait for a while as government regulators pore over on the issues attached with the competition and frame the definite details that would properly administer the two firms' looming rivalry.
Chi-X chief operating officer Peter Fowler said in a statement that as early as March last year, licence has been granted in principle but he admitted that "we don't yet have a date on when we might get a timetable," though he added that his company has been given assurance that the matter has tagged as a priority subject by both the ASIC and the Treasury ministry.
Fowler said that the timetable is expected to carry provisions that will "outline the new competition framework, the finalisation of fresh market integrity rules and the licensing of competitors."
ASIC spokeswoman Kyla Morgan said in statement that the anticipated timetable would be released as soon as reviews of all submissions on the issues concerned have been completed, which she said delved much on equity market regulation in Australia and facilitation of competition between the two rival stock exchanges.
Also, Finance Services Minister Bill Shorten issued a statement assuring that Prime Minister Julia Gillard remains committed in supporting the proposed competition in the country's stock market.
Shorten also gave assurance that 'a final decision on the introduction of competition to the market will be made after the necessary regulatory framework is in place and the market is ready to operate in a competitive environment," which he said is an important step on government's efforts to develop Australia as a viable financial hub.