Brokers back new trading platform
(7 April 2010 – UK) The Stockbrokers Association of Australia has given their seal of approval to the recently licensed Chi-X Global exchange, which has plans to operate in Australia.
However, the industry body warned that ‘significant’ regulatory changes would be required to cope with having more than one trading platform, The Australian reported.
Last week, Chi-X Global was granted an operating licence for Australia by the financial services minister Chris Bowen.
The new platform ends the Australian Securities Exchange’s monopoly in the Australian market and will create much needed competition. Chi-X’s Asia Pacific, chief executive, Ronald Gould last week said that Chi-X planned to cut trading costs by more than 20 percent.
The move to allow a second trading platform into the country is expected to clear the regulatory way for other foreign entrants.
Stockbrokers Association chief executive David Horsfield told The Australian, that the decision was consistent with the government's aim of developing Australia as a regional financial centre.
Introducing competition for market services brings Australia into line with major overseas markets, where competition for market services has delivered important efficiencies and other benefits to market participants and investors, Mr Horsfeild added.
Mr Horsfield also said that those involved in the market would need to become familiar with ‘significant changes’ in the way securities are transacted and that there may be some changes in trading behaviour, including arbitrage trading between markets and increases in algorithmic trading.
Last week, Chi-X Global was granted an operating licence for Australia by the financial services minister Chris Bowen.
The new platform ends the Australian Securities Exchange’s monopoly in the Australian market and will create much needed competition. Chi-X’s Asia Pacific, chief executive, Ronald Gould last week said that Chi-X planned to cut trading costs by more than 20 percent.
The move to allow a second trading platform into the country is expected to clear the regulatory way for other foreign entrants.
Stockbrokers Association chief executive David Horsfield told The Australian, that the decision was consistent with the government's aim of developing Australia as a regional financial centre.
Introducing competition for market services brings Australia into line with major overseas markets, where competition for market services has delivered important efficiencies and other benefits to market participants and investors, Mr Horsfeild added.
Mr Horsfield also said that those involved in the market would need to become familiar with ‘significant changes’ in the way securities are transacted and that there may be some changes in trading behaviour, including arbitrage trading between markets and increases in algorithmic trading.
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