The Turnbull Government is aiming to pursue a commitment to open and competitive markets, yesterday announcing a reform package that opens the door to competition in the clearing of cash equities.
The Treasurer, Scott Morrison, said that opening the share clearance sector to competitions was in line with the Government’s promise to make Australian markets viable and competitive.
“The most significant challenge facing the Australian economy today is our transition from the investment phase of the mining boom to a new economy with strong growth, a more diversified economy that’s tapped into the opportunities of the future,” he said.
“I announce a reform package that opens the door for competition and the clearing of cash equities.”
Acting on the recommendations of the Council of Financial Regulators’ (CFR), the Treasurer has also announced the relaxing of ownership restrictions on the ASX, trying to be consistent with other financial sector companies including insurance organisations and banks.
The CFA’s Review of Competition in Clearing Australian Cash Equities was also released by the Treasurer and recommended:
- That the Government make effective competition possible by being the clearing of equities and the implementation of legislative changes for safe and effective competition;
- That the CFR set out regulatory expectations for the ASX while it remains a sole provider, while making the necessary legislative changes to allow regulators to enforce the expectations where necessary; and
- That the ACCC be given power to arbitrate disputes regarding the access to ASX clearing and settlement services.
The Government and the CFR agencies will work to collaborate with the ASX as it progresses the initiative, identify any regulatory barriers and ensure that technological advancements do not preclude competition.
ASX investment in new methods and technologies is strongly backed by the Government, in line with its current fintech agenda.
“As Treasurer I want to help create an environment where our financial services sector can be both internationally competitive and play a central role in aiding the positive transition of our economy,” Treasurer Scott Morrison said.
“I want to express the Government’s strong support for the ASX’s engagement with new technologies. This is exactly the kind of innovation the Government wants to foster by backing Australian fintech.”
