Monday 23 July 2007 LAWFUEL – The Business & Law Newswire – The Australian Securities and Investments Commission (ASIC) has today released a consultation package on competition for market services (trading in listed securities and market data). ASIC is considering separate applications from AXE ECN Pty Ltd (AXE) and Liquidnet Australia Pty Ltd (Liquidnet) for Australian market licences. The Minister – the Hon. Chris Pearce, MP and Parliamentary Secretary to the Treasurer – is the decision-maker in relation to market licence applications. ASIC’s role is to provide advice to the Minister.
In order to do that, ASIC is consulting publicly on the implications of the operation of these markets as part of the process of developing our advice to the Minister. Both AXE and Liquidnet propose to operate markets for trading in securities listed on Australian Securities Exchange (ASX), operated by ASX Limited. AXE and Liquidnet also propose to sell data relating to trading activity on their respective markets.
‘These applications represent a significant development in Australian securities markets. They raise policy issues that our regulatory regime has not dealt with before’, said ASIC’s Chairman, Mr Tony D’Aloisio.
‘ASIC would like input from our stakeholders and market users to ensure that the regulatory regime going forward reflects the needs of the market, but overall market quality and integrity is maintained. With the benefit of that input, ASIC will provide advice to the Minister’. Information about the consultation process Respondents and interested parties should read the documents that make up the consultation package.
They are: 1. ASIC consultation paper 86; 2. Economic assessment of competition for market services, prepared by CRA International; and 3. Brief overview of the AXE and Liquidnet markets. The draft operating rules of AXE and the draft Australian operating rules of Liquidnet are available on ASIC’s website. ASIC is not seeking comments on the draft rules as part of the consultation process, except where explicitly stated in the consultation paper. Page 1 of 5