Settlements competition bill could give government too much power: ASX
May 1, 2023 – 5.00am
The ASX has raised concerns that legislation designed to create more competition in clearing and settlement of the equity market could give too much power to the federal government and to the competition regulators.
But the sharemarket operator has otherwise backed the proposal – released as a draft by the Albanese government in March – unveiled after it conceded that it was unable to proceed with the blockchain replacement for the CHESS settlements system.
But it wants a clearer delineation between new powers to be given to the Australian Competition and Consumer Commission and those being given to the Australian Securities and Investments Commission. This would avoid overlap and inconsistency. For example, the ASIC rules should not address pricing issues, the company wrote in a submission to the government as it considers the legislation.