ASX Group Ltd is set to lose its two-decade monopoly later this year. The corporate regulator on Thursday announced its timetable for the introduction of market competition in Australia.

The Australian Securities and Investments Commission has opened the door to competition from Japanese investment group Nomura-owned Chi-X, which already operates exchanges in Canada, Japan and a joint venture with the Singapore Exchange in Asia.

The corporate regulator said it intends to issue the final market integrity rules for competition in April 2011. At the same time, it will inform the market of their operative date which will be sometime later in 2011, ASIC said. If Chi-X meets all of ASIC's conditions, it can begin operating in October or November.

"The timetable also depends on market operators and market participants taking all necessary steps to get ready for competition over the coming period," ASIC Commissioner Shane Tregillis said in a statement.

Chi-X Australia's chief operating officer Peter Fowler said all investors will benefit from their reduced transaction prices.

"The introduction of Chi-X in other markets has attracted substantial additional liquidity, new market participants, reduced trading costs, and improved and deepened the market infrastructure and capacity. We are confident Chi-X will deliver similar benefits to Australia," he said in a statement.

"All investors will benefit, from the biggest institution to the smallest retail investor or super fund member. Brokers will be able to offer choice and better service to investors - access to another market, new liquidity, and the potential to gain a better buying or selling price for their client."

The ASX says the corporate regulator’s decision support the rationale behind its merger with the Singapore Exchange.

"As a natural response to the competitive environment, ASX has previously outlined how the ASX-SGX combination will deliver further efficiencies and new opportunities, both domestically and regionally, for Australia's capital markets," the company said in a statement.

"These would be achieved while maintaining all of the existing regulatory protections. Those protections will include the new market integrity rules."

The Australian government welcomed the timetable, saying competition was essential to develop Australia into a financial services hub.

"Competition is good for the equities market, good for Australian and overseas-based listed companies and good for our financial services sector," Minister for Financial Services and Superannuation Bill Shorten said.

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