Chalmers claims Govt credit for ASX competitor

The Federal Government is claiming validation of its policy position on injecting competition into clearing and settlements following the Australian Securities and Investments Commission’s licensing of FinClear.

FinClear has already been canvassed as a competitor to the Australian Securities Exchange and the approval of its license has come amid continuing concerns that the Australian Securities Exchange (ASX) holds a monopoly position on clearing and settlements.

The Treasurer, Jim Chalmers said the Government’s reforms were making the economy and the financial system more competitive.

“Clearing and settlement services are critical to the functioning and stability of financial markets and our changes made it possible for more providers to emerge,” he said.

“They created a framework for fair, transparent and non‑discriminatory access to market infrastructure for competitors, allowing them to offer their own clearing and settlement services, and that’s what’s happening.”

Chalmers said the licence provided by ASIC would underpin the operations of FinClear’s subsidiary FCX.

“By making our markets more modern, we will make our economy more productive, competitive and dynamic,” he said

“The emergence of a new provider of clearing and settlement services is evidence that our economic plan is helping to make our economy more competitive and our financial system stronger,” Chalmers said.