Singapore’s stock exchange, SGX Group, is reportedly assessing a potential bid for Cboe Australia, a rival trading venue to the ASX. This move comes almost 15 years after its attempt to acquire the ASX was blocked. SGX has held preliminary discussions with Cboe Global Markets and its advisers regarding a possible acquisition of the Australian unit. SGX Group touts itself as Asia’s most international multi-asset exchange, providing services such as listing, trading, clearing, settlement, depository and data services.
Spokeswomen for both SGX and Cboe declined to comment on the matter. The future of Cboe Australia, which handles approximately 20 per cent of share trading in the country, has been uncertain since Cboe Global Markets announced its intention to sell the division, alongside Cboe Canada, to focus on core operations. The sale coincides with a period of turbulence for the ASX, including recent outages and an ongoing lawsuit by the Australian Securities and Investments Commission (ASIC) related to its delayed CHESS upgrade.
Other potential buyers for Cboe Australia include the New Zealand stock exchange, while Nasdaq’s priorities reportedly lie elsewhere. Any sale of Cboe Australia would require regulatory approval from ASIC. Stockbrokers and investment banks are hoping a buyer emerges to maintain competition in trading volumes and listings, fearing the exchange may be shut down otherwise.
David Ferrall, chief executive of FinClear, indicated that the delayed ASX CHESS upgrade complicates any sale. The National Stock Exchange of Australia, owned by the Canadian Securities Exchange, also seeks to attract more listings, including from the ASX. SGX Group was formed in 1999 and aims to grow across asset classes and geographies. In 2011, its $8 billion bid to acquire the ASX was rejected due to concerns over regulatory sovereignty.
