CLEARING OF SECURITIES – AUSTRALIA

ASX will share blockchain system savings

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Original article by James Eyers
The Australian Financial Review – Page: 15 : 8-Dec-17

Stock exchanger operator ASX Limited expects to achieve significant cost savings by phasing out its CHESS settlement and clearing system for equities in favour of one based on blockchain technology. Financial market experts say the shift to distributed ledger technology developed by Digital Asset Holdings will increase the sharemarket’s transparency, and have welcomed the ASX’s announcement that some its cost savings will be passed on to market participants. The ASX could potentially deploy blockchain technology for other markets.

CORPORATES
ASX LIMITED – ASX ASX, DIGITAL ASSET HOLDINGS LLC, STOCKBROKERS AND FINANCIAL ADVISERS ASSOCIATION LIMITED, NORTHERN TRUST COMPANY, DIGITALX LIMITED – ASX DCC, EUROZ SECURITIES LIMITED, KPMG AUSTRALIA PTY LTD, NCC GROUP, AUSTRALIA. DEPT OF THE TREASURY, JP MORGAN AND COMPANY INCORPORATED

ASX to face fresh competition

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Original article by Andrew White
The Australian – Page: 19 & 23 : 12-Oct-16

Stock exchange operator ASX Limited could potentially lose its monopoly on clearing and settlement services. Competition in the clearing of securities in particular is being scrutinised by the Australian Government as part of its broader competition law reforms. Several international players have already been granted licences to provide clearing services for over-the-counter derivatives, while share trades were opened to competition in 2011.

CORPORATES
ASX LIMITED – ASX ASX, CHI-X AUSTRALIA PTY LTD, COUNCIL OF FINANCIAL REGULATORS, AUSTRALIA. DEPT OF THE TREASURY, RESERVE BANK OF AUSTRALIA, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, DIGITAL ASSET HOLDINGS, CME, LCH.CLEARNET SA

Morrison declares open season on ASX

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Original article by Patrick Durkin
The Australian Financial Review – Page: 44 : 31-Mar-16

Federal Treasurer Scott Morrison announced on 30 March 2016 that ASX Limited will no longer have a monopoly on clearing and settlement activities. Elmer Funke Kupper’s recent resignation as CEO of the stock exchange operator makes it ill-prepared for the coming changes. Morrison said no licences will be granted during a transition period. The ASX has therefore 18 months to prepare itself for a new regulatory regime.

CORPORATES
ASX LIMITED – ASX ASX, AUSTRALIA. DEPT OF THE TREASURY, CHI-X AUSTRALIA PTY LTD, TABCORP HOLDINGS LIMITED – ASX TAH, COUNCIL OF FINANCIAL REGULATORS, CONTANGO ASSET MANAGEMENT LIMITED, LONDON STOCK EXCHANGE, DEUTSCHE BOERSE, SOCIETE GENERALE SA, UNICREDIT SPA, CHICAGO MERCANTILE EXCHANGE, INTERCONTINENTAL EXCHANGE, SINGAPORE EXCHANGE LIMITED, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, TELSTRA CORPORATION LIMITED – ASX TLS, LONDON CLEARING HOUSE

Brokers confident of smooth shift to two-day settlements

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 21 : 22-Feb-16

Australia’s equities and debt markets are set to adopt a two-day settlement cycle on 7 March 2016. The ASX says that more than 100 market participants have indicated that they are prepared for the so-called T+2 system, which has been in test mode since August 2015. The New Zealand Exchange is also slated to make the transition on 7 March, while key Asian markets have either adopted T+2 or are planning to do so.

CORPORATES
ASX LIMITED – ASX ASX, CHI-X AUSTRALIA PTY LTD, NEW ZEALAND EXCHANGE LIMITED, COMMONWEALTH SECURITIES LIMITED, BNP PARIBAS EQUITIES (AUSTRALIA) LIMITED

ASX warns on open clearing

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Original article by Michael Smith
The Australian Financial Review – Page: 20 : 9-Jun-15

The Australian Government is likely to make a decision on the future of ASX Limited’s monopoly on the clearing of cash equities by July 2015. ASX CEO Elmer Funke Kupper has warned that allowing competition in cash equities clearing would make it more difficult to manage defaults by stockbrokers. He notes that rival clearing houses would have to close a firm’s options trading positions immediately rather than pursuing alternatives that are open to the ASX.

CORPORATES
ASX LIMITED – ASX ASX, BBY LIMITED, CHI-X AUSTRALIA PTY LTD, COUNCIL OF FINANCIAL REGULATORS, RESERVE BANK OF AUSTRALIA, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIA. DEPT OF THE TREASURY

Debt markets may also move to T+2 settlements

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 18 : 24-Mar-15

An ASX working party has proposed shifting to a two-day settlement cycle for cash-based share trades from 7 March 2016, in line with European bourses. New Zealand may also adopt the so-called T+2 settlement cycle in 2016, as many stocks are listed in both Australia and New Zealand. Australian debt markets may also adopt T+2 in 2016

CORPORATES
ASX LIMITED – ASX ASX, AUSTRALIAN FINANCIAL MARKETS ASSOCIATION INCORPORATED, RESERVE BANK OF AUSTRALIA, OMGEO PTY LTD

Chi-X calls for share clearing split

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Original article by Shaun Drummond
The Australian Financial Review – Page: 16 : 16-Mar-15

Submissions on the Council of Financial Regulators review of ASX Limited’s monopoly on equities clearing must be lodged by 27 March 2015. John Fildes, the CEO of rival stock exchange operator Chi-X Australia, argues that the ASX Clear business should be subject to formal separation from ASX Limited or internal separation to ensure independent access to equities clearing. Fildes acknowledges that the domestic market is too small to justify introducing competition in the sector

CORPORATES
ASX LIMITED – ASX ASX, CHI-X AUSTRALIA PTY LTD, COUNCIL OF FINANCIAL REGULATORS, LCH.CLEARNET SA, ASX CLEAR

Chi-X labels ASX fee cuts ‘cynical’

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Original article by Shaun Drummond
The Australian Financial Review – Page: 15 : 10-Mar-15

Stock exchange operator ASX Limited proposes to reduce its fees for the clearing of equities from 1 July 2015, subject to a five-year extension of its existing monopoly. However, ASX’s actions have been criticised by Chi-X Australia CEO John Fildes, who has questioned why the offer was not made when the moratorium on competition in the sector commenced in 2013. Matthew Grounds of UBS says the Australian market is not large enough to support more than one equities clearing provider

CORPORATES
ASX LIMITED – ASX ASX, CHI-X AUSTRALIA PTY LTD, UBS HOLDINGS PTY LTD, COUNCIL OF FINANCIAL REGULATORS