ASX needs a dose of competition

The prospective approval by the Australian Securities and Investments Commission and the Treasurer for London-based LCH Clearnet to break the Australian Securities Exchange's monopoly on clearing house activities is great news for investors and brokers alike.

The settlement process for derivatives, cash and shares is a crucial component of trading activity, with clearing being the guarantee it provides that trades will settle, removing the counter-party risk via a third-party guarantee.

Incumbency of the clearing and settlement process, like incumbency in terms of the trading mechanism, confers considerable advantage to the ASX ... READ MORE

Released by the Australian Financial Review - 1 August 2012