Unpicking of the ASX is possible

The Australian

FinClear says the ‘unpicking of the ASX’ is possible as it is subjected to clearing and settlement inquiry

By DAVID ROSS

4:24PM MARCH 30, 2023

Financial services technology operator FinClear’s chief executive, David Ferrall, says plans to empower regulators to intervene in disputes over settlement and clearance could result in the “unpicking” of the Australian Securities Exchange’s dominance in equities trading.

The federal government last week announced it would begin consultations in preparation for a Bill that would empower of regulators to intervene in market disputes, in what Treasurer Jim Chalmers said was aimed at “providing emerging competitors fair, transparent and non-discriminatory access to market infrastructure”.

This could see the ASX’s monopoly on cash equity clearing and settlement broken up.

Mr Ferrall said although the ASX made little profits from its clearance and settlement systems, it was baked into the structure of the equities market.

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