Watchdog nears decision on letting US giant compete with ASX
Big investors were updated on the issue by the Australian Securities and Investments Commission (ASIC) chair Joe Longo at an investor roundtable held by Treasurer Jim Chalmers on Wednesday.
Cboe Global Markets is a $US26 billion ($40 billion) US-listed stock exchange operator. The company offers trading services in Australia in shares that are already listed on the stock exchange.
However, it is not authorised to conduct new listings of companies (also known as initial public offerings) in Australia.
ASX Limited, which has been embroiled in the fallout from the failure of a big technology project, is effectively the only option for private companies looking to float on the Australian sharemarket.
If ASIC gives the green light to Cboe to conduct new listings in Australia, the government expects this would leave the ASX facing more competition in the market for initial public offerings.
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ASIC also told the gathering, which included a range of superannuation heavy-hitters, that it was looking at ways to streamline dual listings of foreign companies.
Treasurer Jim Chalmers said: 'Making our markets more competitive will make our economy more prosperous and productive. If it goes ahead, this will mean more investment in Australian businesses, and that means more jobs and opportunities for Australian workers.'
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