The Australian Stock Exchange (ASX) is presently in talks to mitigate its clearing fees for its cash equities offering, pending a full review by the Council of Financial Regulators and government approval.
Late last year, ASX made headlines with its binding offer to Australian interest rates securities and derivatives electronic marketplace, Yieldbroker. The proposal totalled $65 million for a 49% non-controlling stake in the company, leaving Yieldbroker independently managed.
The lowering of cash equities fees is not a decision to be passed most likely, as the edict is at the full discretion of customers, stakeholders, Council of Financial Regulators and the Australian government. A final review by the Council is expected to be reached during Q1 of 2015.
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Pending a favorable Council review, the advent of a new tiered clearing fee structure will be an overarching mandate for all market participants. Such a finality will result in a five-year extension to the Code of Practice that ASX enacted back in August 2013.
A primary aim of the new fee structure will be to share and appropriate upside from the growth and scale economies with the market itself, possibly resulting in a 14.2% fee reduction to ASX customers. Over a yearly basis, this could end up reaching a possible $6.8 million in fee savings for customers.
The proposed fee changes by the ASX include: