CANBERRA, Australia (AP) - Australia has granted a license to a subsidiary of Chi-X Global Inc. to set up a competing exchange this year to break the monopoly held by Australian Securities Exchange Ltd., or ASX.
Financial Services Minister Bill Shorten said Wednesday his government granted the license to Chi-X Australia Pty. Ltd., owned by Japanese investment bank Nomura Holdings Inc., to boost competition in Australia's financial markets and to build the nation's reputation as a financial services hub within Asia.
The license is subject to Chi-X meeting strict conditions in relation to resourcing, including the establishment of an adequate compensation fund and robust testing of its technological infrastructure, Shorten said.
Chi-X Australia chief operating officer Peter Fowler said his company looked forward to launching into the Australian share market in the final three months of 2011.
"We believe that Chi-X will provide both existing and new market participants greater choice and flexibility," Fowler said in a statement.
The license comes a month after the government rejected the Singapore stock exchange's $8.3 billion takeover bid for ASX on the grounds that the deal to create one of Asia's leading stock markets headquartered in the city-state was not in the Australian national interest.