A double win for shareholders

Six million Australian share owners can look forward to more competition – and cheaper trades – before the end of the year.

At least one other operator, apart from the Australian stock exchange, should be offering share trading facilities by then.

This will happen under historic changes that the Federal government has just announced.

The Financial Services, Superannuation and Corporate Law Minister Chris Bowen said the government had given a new competitor, Chi-X in principle approval to operate in Australia.

“This is based on advice from ASIC that Chi-X is well advanced, has already met the principal requirements for the issuing of a licence and is well advanced to meet the other, more minor requirements for the issuing of a licence,” Mr Bowen said.

He said this would advance Australia’s long held ambition to become a regional financial hub.

“This announcement is important for Australia’s ambition to be a financial services centre,” Mr Bowen added.

He said this development would not have been possible without the government’s decision last August to transfer supervision of Australia’s financial markets from the Australian Stock Exchange to the Australian Securities and Investments Commission.

“I said ……that decision, would enable competition to be considered on its merits and that is what has occurred, Mr Bowen added.

“I also said at the time that any alternative market operator could not begin operation until after the transfer of supervision had occurred.

“And that remains the Government’s position.

“The transfer of supervision is well advanced and remains on track to occur in the third quarter of this year,” Mr Bowen said.

He said the government had also received two other applications, to operate in the market.

“… one is from Liquidnet.

” and one is from AXE,” Mr Bowen said.

“My understanding is that neither of those applicants are pressing their application at the moment,” he added.