Chi-X Australia Regulatory Delays

Submitted by Share Trading on 8 February, 2011 - 10:24

Regulatory delays are facing the entry of Chi-X Australia an upcoming rival to Australian Securities Exchange (ASX:ASX). An earlier announcement of operations commencement by March this year by Chi-X could see delay as they wait for a timetable of competition guidelines set to be released by the Australian Securities and Investments Commission (ASIC). Chi-X Australia had received "in principle" approval from the government for a license in March 2010.

Chi-X said in an announcement on Monday that the delay was supposedly caused by the Australian general elections held last year in August, which it said prompted an immediate review on all government commitments approved by the previous administration, currently conducted by Australian Securities & Investments Commission (ASIC).The area was further complicated by Singapore Exchange (SGX) which agreed to start a dark pool (a private trading platform largely used by large institutions) with Chi-X Australia’s parent company, launched a takeover bid for ASX.