ASX Chief defends clearing monopoly

The chief executive of the Australian Securities Exchange has urged the government to preserve its clearing monopoly because the risks of opening the market to global competitors are not matched by the rewards.

Elmer Funke Kupper says allowing overseas rivals to clear trades in Australia would contradict the main reason Canberra gave for blocking the Singapore Exchanges A$8bn (US$8.3bn) takeover offer in 2011 - that it was not in the national interest to lose control of its financial infrastructure.

"If this is allowed to happen, the government will have made a major public policy change," says Mr Funke Kupper in an interview with the Financial Times, and the next time the ASX proposes a deal, "they will have to say yes. They cant have it both ways".

Of note the ASX is the world's eighth-biggest exchange with an equity market value of A$5.2bn, and is widely seen as an attractive consolidation partner ... READ MORE

Released by the Financial Times - 31 October 2012