5 May 2011

Alternative securities exchange approved

9:52 am on 5 May 2011

The federal government in Australia has granted a licence to Chi-X to operate as an alternative securities exchange, competing with the ASX.

Chi-X is owned by Nomura, an investment house in Japan. It already operates exchanges in Canada and Japan and a joint venture with the Singapore exchange.

It will be required to meet conditions relating to adequate resourcing, including the establishment of a compensation fund and testing of technical infrastructure before trading goes live later this year.

The government says the new exchange will contribute to Australia's development as a financial hub, by lowering transaction costs through competition and improving liquidity and access to capital.