Cboe to compete against ASX following ASIC approval

The regulator has approved Cboe Australia to list new companies, introducing long-awaited competition to the ASX-dominated listings market.

The Australian Securities and Investments Commission (ASIC) has approved Cboe Australia’s application to operate as a listing market, allowing it to list new companies and directly compete with the Australian Securities Exchange (ASX).

This decision is set to enable Australian investors to access a wider range of investment opportunities, including initial public offerings and dual-listed foreign entities, further reinforcing ASIC’s commitment to facilitating a more innovative and competitive capital market.

Joe Longo, ASIC chair, said this move will help ensure Australia’s capital markets evolve with global trends.

“Australia’s capital markets are strong and resilient, but they must continue to adapt to evolving global market dynamics and meet the future needs of our economy,” Longo said.

“This move will provide more choice for companies to list in Australia, build more links to offshore markets and create more options for investors, which is good news for the Australian economy.”

According to ASIC, competition in Australia’s equities market has already lowered trading costs and expanded access to investment products, including exchange-traded funds, offered under Cboe’s existing Australian market licence.

Consideration for Cboe Australia’s listing market application by ASIC began in August this year as part of broader work to improve competition and innovation in Australia’s capital markets.

Cboe, formerly Chi-X Australia, launched in 2011 as an alternative trading venue for ASX-listed securities and was acquired by Cboe Global Markets in 2021.

It currently accounts for around 20 per cent of Australia’s equity market turnover, representing almost $2 billion in daily trades.

The regulator’s decision follows a series of initiatives to advance Australia’s public and private markets, including a February discussion paper on changing market dynamics and a June announcement to fast-track IPO approvals.

ASIC has also exercised new powers under the Competition in Clearing and Settlement reforms to require the ASX to offer its clearing and settlement services transparently and fairly, including publishing fee comparisons with international providers.

In September 2024, ASIC granted a clearing and settlement facility licence to FinClear (trading as FCX), which connects buyers and sellers of private company shares during periodic trading events.

Cboe Australia now joins the ASX, National Stock Exchange of Australia, and Sydney Stock Exchange as one of four markets licensed to list securities in Australia.