The corporate regulator, the Australian Securities and Investments Commission (ASIC), has approved Cboe Australia’s application to operate a listing market. This decision increases direct competition with the Australian Securities Exchange (ASX) for sharemarket floats. Cboe Australia is an alternative exchange that provides trading and investment solutions. It aims to create a more efficient, competitive, and innovative marketplace for Australian investors.
The approval enables Cboe to list new companies on its platform, expanding its current capabilities which include the listing of exchange-traded funds. ASIC’s chair, Joe Longo, stated that this move facilitates greater access for Australian investors to diverse investment opportunities, initial public offerings, and dual-listed foreign entities. Longo emphasised the importance of Australian capital markets adapting to evolving global market dynamics to meet the future needs of the economy.
“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,” Longo added. The increased competition is expected to benefit both companies seeking to list and investors looking for diverse investment options.
The ASX is currently facing intense regulatory scrutiny following a technology upgrade failure and a settlement outage in late 2024. Cboe’s entry into the listings market is seen as a significant development that could reshape the Australian equity market landscape.
