Australian federal government on Wednesday formally approved Japanese-owned Chi-X to operate a separate securities exchange in Australia, to increase competition in financial services.
Chi-X will be the first foreign-owned stock exchange in Australia, and the entry of Chi-X Australia Pty Ltd marks an end to the 24-year monopoly of the Australian Stock Exchange (ASX).
According to Assistant Treasurer Bill Shorten and Treasurer Wayne Swan, the government had granted a licence to Chi-X Australia Pty Ltd to boost competition, as part of its broad agenda to build Australia's reputation as a financial services hub within Asia.
"Competition in Australia's financial markets is critical to promoting exchange innovation, lowering transaction costs for market participants, leveraging our pool of national superannuation savings, and improving liquidity and access to capital for companies," Shorten and Swan said in a joint statement released on Wednesday.
Shorten said the market regulator, the Australian Securities and Investments Commission (ASIC), would work with market operators to ensure a smooth transition to competition.
Meanwhile, Chi-X Australia chief operating officer Paul Fowler said competition between his company and ASX would provide benefits such as lower costs for investors.
"By leveraging our experience and proven technology, we believe that Chi-X will provide both existing and new market participants greater choice and flexibility," Fowler said in a statement on Wednesday.
"We look forward to launching the market later this year."
The company was aiming for a start by the fourth quarter of 2011.
The announcement came a month after Australian federal government blocked the Singapore Exchange's takeover of the ASX, ruling the deal was not in the national interest.
(Source:http://news.xinhuanet.com)