In a blow to the Australian Stock Exchange (ASX), Cboe has received regulatory approval from the Australian Securities and Investments Commission (ASIC) to operate a listing market in the country.
ASX Group was put under investigation by ASIC in June, after concerns were raised about whether it was fit for purpose.
READ MORE: ASX Group under investigation after repeated “serious failures”
Cboe’s approval will increase listing optionality in Australia, putting Cboe in direct competition with market operators including ASX, the National Stock Exchange of Australia (NSX) and the Sydney Stock Exchange (SSX).
Cboe Australia holds a 20% share of total equity market turnover in the country – close to AUD 2 billion in trades. It has been active since 2011, under the name Chi-X, before being acquired by Cboe Global Markets in 2021. The group also offers a listing market in the US.
Joe Longo, ASIC chair, commented, “This move will provide more choice for companies to list in Australia, build more links to offshore markets and create more options for investors, which is good news for the Australian economy.”
ASIC’s attempts to boost IPO activity in the country have included a ‘fast-track’ procedure, which the commission says can down the IPO timetable by up to a week, and allowing firms to accept retail investor applications during the public exposure period for new listings.
READ MORE: Australia accelerates listing process amid record low IPOs
AUD-denominated IPOs have been minimal over the past 12 months, with US$3 billion representing just 1.6% of global issuances. The largest IPO, by data centre investment, operation and development company DigiCo Infrastructure REIT, constituted over a third of this – a US$1.3 billion offering announced in November 2024.
