Australia market major backs plan to break ASX monopoly on post-trade functions

Reuters

Australia market major backs plan to break ASX monopoly on post-trade functions

Published on March 24, 2023 05:17 PM AEDT

By Byron Kaye

SYDNEY (Reuters) – A top Australian share trading technology firm backed a government proposal to break stock market operator ASX Ltd’s effective monopoly over clearing and settlement, saying its failed software overhaul showed the need for new entrants.

In draft legislation published this week, the federal government said it wants to give potential rivals to the ASX’s clearing and settlement operations the same access to financial market infrastructure.

The new rules would also give the Reserve Bank of Australia and the Australian Securities and Investments Commission, which jointly regulate the ASX, greater oversight of clearing and settlement providers to stop dominant players pushing out competition.

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