Japan's ChiX breaks monopoly of Aussie share market

Published in the Courier Mail - May 2011

By Karina Barrymore

Japanese owned ChiX has broken the monopoly of the Australian Securities Exchange, winning government approval to set up a second share market in Australia.

The move is expected to increase competition, lower transaction costs and improve liquidity for companies wanting to raise capital.

The new ChiX exchange is due to start operating before the end of the year and hopes to capture some of the $1.4 trillion-a-year trading turnover currently held by the ASX.

ChiX Australia chief operating officer Peter Fowler said its high-performance trading system would lower costs for market users.

"This is a significant milestone in the ongoing development and growth of Australia's financial markets," Mr Fowler said yesterday.

"We believe ChiX will provide both existing and new market participants greater choice and flexibility."

ASX spokesman Matthew Gibbs said yesterday the former monopoly had anticipated the licence approval.

"ASX is well prepared to operate in the proposed competitive environment," Mr Gibbs said, including upgrading its trading platforms and reducing headline transaction fees.

Not everyone welcomed the move.

"I am all for competition to keep an open market, prices competitive and better services," fund manager Wealth Within analyst Dale Gillham said yesterday.

"I am not in favour of competition simply for competition's sake, to some degree this is what is happening here as our Government pushes for a more competitive market place in all things, not just our stockmarket."