Clearing and Settlement News: Australian Links

Context

ASIC Inquiry into ASX [July 2025]
Inquiry into ASX | ASIC
https://www.asic.gov.au/regulatory-resources/markets/inquiry-into-asx/

ASIC Interim Report.
ASIC has now imposed an additional capital charge of $150 million on ASX to reflect the elevated risk profile arising from the issues identified in the report.
https://www.asx.com.au/content/dam/asx/about/media-releases/2025/78-15-december-2025-asx-commits-to-asic-inquiry-actions-150m-capital-charge.pdf#:~:text=The%20Interim%20Report%20from%20the,response%20to%20the%20Interim%20Report.
Full Interim report.
https://download.asic.gov.au/media/ajdn5u23/25-303mr-inquiry-into-asx-group-interim-report-15-december-2025-20251222.pdf

The Australian equity market is a small pond on a global scale
“We’re a lower liquidity market. There aren’t many alternatives for people to trade outside of the closing auction mechanism on the primary exchange,”
2025 was an eventful year for the Australian exchange landscape. ASX, the country’s largest exchange, has been embroiled in regulatory scandal, with the group under investigation following what ASIC called “serious failures” across its licensees – including the unsuccessful CHESS Settlement replacement saga.
https://www.globaltrading.net/the-australian-equity-markets-big-shake-up/

Related to this is how ASX treat private markets. Hence Rep 823.
[Nov '25] Advancing Australia’s evolving capital markets: Discussion paper response report.
Figure 1 gives a nice chart on the market growth from $68 billion to $167 billion over te last decade.
https://www.asic.gov.au/regulatory-resources/find-a-document/reports/rep-823-advancing-australia-s-evolving-capital-markets-discussion-paper-response-report/

Regulators

ASIC

ASIC licensed markets (and consultation papers)

http://www.asic.gov.au/regulatory-resources/markets/market-structure/

RBA

Reserve Bank of Australia; Clearing and Settlement Facilities (and consultation papers)
http://www.rba.gov.au/payments-and-infrastructure/financial-market-infrastructure/clearing-and-settlement-facilities/consultations.html

Clearing and Settlement Facilities: Policies and Guidance

https://www.rba.gov.au/payments-and-infrastructure/financial-market-infrastructure/clearing-and-settlement-facilities/policies-and-guidance.html

Increasing the Threshold for the Application of the Financial Stability Standards for Securities Settlement Facilities.
(I worked 'with' RBA when they originally consulted on these standards and the implementation thresholds).
Wonderful to see a material and proportionate response. 40 billion sounds a lot - but in the context of the market - it is less than 1%. An entirely appropriate response. Bravo!
https://www.rba.gov.au/publications/consultations/2023-11-increasing-the-fss-threshold-for-sffs/

Treasury
Regulatory Initiatives Grid – September 2025
Regulatory Initiatives Grid – September 2025 | Treasury.gov.au
https://treasury.gov.au/publication/regulatory-initiatives-grid-september-2025

Review of competition in clearing Australian cash equities [Feb '2015]
Review of competition in clearing Australian cash equities | Treasury.gov.au

The Council of Financial Regulators (CFR)
Competition in Clearing and Settlement
Competition in Clearing and Settlement – Regulatory Framework – Council of Financial Regulators
https://www.cfr.gov.au/financial-market-infrastructure/regulatory-framework/competition-in-clearing-and-settlement.html

Note: This information used to be hosted on the Treasury website.
For fans of the Wayback Machine (https://web.archive.org/) some of the earlier materials from 2001 when the issues really began to surface are available - but I find the service patchy - not least because Treasury was migrating to a new web site at this time.

Council of financial regulators advice on competition in clearing of the cash equity market
http://www.treasury.gov.au/PublicationsAndMedia/Publications/2013/competition-of-the-cash-equity-market

Unfortunately, important links like the above, get lost over time.
This was the decision taken in Dec 2012 to defer competition for 2 years. It was the 2nd time Australia had looked at competition (the first being ADX) and the 2nd time, Australia stepped back from the challenge.
Attachment A - Letter to Deputy Prime Minister-Council of Financial Regulators.pdf
https://treasury.gov.au/sites/default/files/2019-03/Letter-CFR-to-DPM.pdf

Council of Financial Regulators advice on competition in clearing of the cash equity market
[Feb 2013]
Council of Financial Regulators advice on competition in clearing of the cash equity market | Treasury.gov.au

Regulatory Expectations for Conduct in Operating Cash Equity Clearing and Settlement

Services in Australia [Sep 2017]
Regulatory Expectations for Conduct in operating Cash Equity Clearing and Settlement Services in Australia

Market Operators

ASX (and Trade Acceptance Service)
This is the piece of the puzzle that all potential Australian competitors are forced to use. A barrier to entry and a process that assures ASX has a vested interest in any competitor.
http://www.asx.com.au/services/clearing/trade-acceptance-service.htm

CXA
Chi-X Australia.

History of CXA/Cboe

October 2011: Chi-X is launched as an alternative trading platform for Australian equities. Originally, only 8 stocks were available for trading.
June 2013: a study by Michael Aitken from the Capital Markets Cooperative Research Center found that Chi-X brought $215m in ‘net benefits’ to the market in its first year, by providing savings from reduced trading costs thanks to competition with the ASX.
November 2013: Chi-X reports a weekly market share of 18.39% total trading volume, with a record market share of 24.67%.
July 2014: Chi-X’s market share hits a record of 29.86% (on July 11)
June 2021: Cboe Global Markets (the US’ third-largest exchange operator) acquires and renames Chi-X Asia Pacific Holdings, which includes Chi-X Australia. Cboe now allows users to trade every ASX-listed share.
May 2022: Cboe launches the exchange’s first crypto ETF
What is Cboe (formerly Chi-X Australia)? - Market Index

Chi-X Australia and Japan were acquired by private equity giant JC Flowers, which then sold the business to Cboe in 2021.
Cboe Global Markets, Inc. - Cboe Global Markets Completes Acquisition of Chi-X Asia Pacific

[09/02/26]

Jill Griebenow, chief financial officer of Cboe, said on the call that there has been “strong” initial interest from potential buyers for Cboe’s Australian and Canadian businesses, which were put up for sale last year.
Prediction Markets are ‘Logical Extension’ for Cboe - Markets Media

12/01/26
Not directly relevant to Aust - but gives a bit of context. This was a global pivot by Cboe.
Cboe Europe Winds Down Derivatives Exchange
https://www.marketsmedia.com/cboe-europe-winds-down-derivatives-exchange/

Redundant link: http://www.chi-x.com/australia/

ADX (The Australian Derivatives Exchange)
Australian Derivatives Exchange - MarketsWiki, A Commonwealth of Market Knowledge
(Note to self - chat to John L and tweak this history).
(Note to readers - does anyone have a copy of The Australian Treasury **press release No. 022 of 2001** which referenced ADX’s closure? As I recall it - we recinded our license rather than breach financial covenants).

NSX
National Stock Exchange of Australia
CNSX Global Markets, parent company of the Canadian Securities Exchange (CSE), has acquired National Stock Exchange of Australia (NSXA) parent company NSX.
https://www.globaltrading.net/cnsx-acquisition-challenges-asxs-primary-listings-crown/

FCX
Secondary market for unlisted companies and funds

https://fcx.com.au/
Owned by, FinClear Group
Since our inception in 2015, we have grown and expanded with the acquisitions of Dion Australia in 2018; Pershing Securities Australia in 2021; Transact1 in 2023; and the addition of FCX in 2022.
https://finclear.com.au/about-finclear/

Licensed domestic financial markets operating in Australia
Licensed domestic financial markets operating in Australia | ASIC
Licensed clearing and settlement facilities operating in Australia | ASIC

Legislation

Current Digital Asset reforms (2026).

The Corporations Amendment (Digital Assets Framework) Bill 2025 (Bill) was introduced to the House on 26 November 2025 and was referred to the Senate Economics Legislation Committee (Committee) on 5 February 2026. The Committee's report will be due on 16 March 2026.
https://www.ashurst.com/en/insights/digital-asset-framework-bill-introduced-into-parliament-as-the-regulatory-horizon-appears/

Corporations Amendment (Digital Assets Framework) Bill 2025
(This link gives both the background and an explanation of the Bill)
The Bill does not define ‘digital asset’, but it defines digital tokens, digital asset platforms (DAPs) and tokenised custody platforms (TCPs).
https://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/bd/bd2526/26bd040#heading_32312a0866f24f159b2e7f189dfe1656

ASIC Information Sheet: 225
Digital assets: Financial products and services.
https://www.asic.gov.au/regulatory-resources/digital-transformation/digital-assets-financial-products-and-services/

The tricky bit about ownersip and foreign ownership (this was an issue at the time of ADX)
All mapped out in good old Aussie Corps Act.
https://www5.austlii.edu.au/au/legis/cth/consol_act/ca2001172/
ASIC is the gatekeeper on 'controlled Australian Bodies', like Market operators.
https://www5.austlii.edu.au/au/legis/cth/consol_act/ca2001172/s852da.htmln
s852D details the 20% limit.
CORPORATIONS ACT 2001 - SECT 852DG Application for approval to exceed 20% voting power limit