ASIC touts growing global connections

In an effort to boost its appeal to foreign companies and investors, the Australian Securities and Investments Commission (ASIC) is expanding market access to foreign trading venues and forging greater ties with smaller Canadian exchanges in particular.

The ASIC announced that it’s in the final stages of reviewing an application from the Australian subsidiary of Cboe Global Markets — which currently trades securities listed on the primary market, the Australian Securities Exchange — to become a listing market in its own right.

“This move is expected to enhance competition and attract foreign investment, providing more choice for investors and greater international alignment,” the regulator said.

At the same time, the ASIC said it’s expanding the roster of approved foreign trading venues to include Cboe’s Canadian and U.S. exchanges, along with the Canadian Securities Exchange (CSE).

“This expansion will enable Australian investors to participate in certain transactions in these markets, further integrating Australia into the global financial system,” the regulator said.

The CSE is already in the process of acquiring the National Stock Exchange of Australia (NSX), a Sydney-based venture market. That deal, announced in May, requires regulatory, shareholder and Australian court approval.

Earlier this week, the NSX announced that the CSE has raised its offer for the company by 14%, and that the NSX pushed back its planned shareholder vote. The deal is now expected to close by the end of October.

The ASIC said the proposed acquisition “will enhance competition and bring global expertise to Australia’s capital markets.”

Alongside these moves, the ASIC reported that it’s considering reforms to “streamline dual listings” of foreign companies in Australia and is actively considering other innovative applications to attract international businesses to Australia’s public markets.

Touting its efforts to enhance competition and innovation in its capital markets and to attract more foreign capital, ASIC chair Joe Longo said: “Our capital markets are healthy and strong but face intensifying global competition for capital and listings. As superannuation funds grow and investors seek opportunities, our actions will help keep our markets efficient, innovative and attractive, supporting economic growth for all Australians.”

James Langton

James is a senior reporter for Advisor.ca and its sister publication, Investment Executive. He has been reporting on regulation, securities law, industry news and more since 1994.